Cloud computing has completely changed how we work, maximising convenience, cost management, storage and security for today’s global workforce. But what is cloud computing exactly, how can it benefit your business and what are its best practices as we look ahead to 2023?

End-user spending on cloud computing is on the up, with figures expected to reach almost £538 billion ($600 bn) in 2023, technology research and consulting firm Gartner finds. “Cloud is the powerhouse that drives today’s digital organisations,” said Sid Nag, research vice president at Gartner.

Today’s businesses are adopting a conscious approach to purchasing cloud services and engaging in thoughtful research before buying solutions from public cloud providers. Amid rising inflation, as we head into 2023, business owners and chief information officers (CIOs) are focusing on specific cloud computing actions that drive them towards their business and technology goals.

Cloud computing is an ever-growing and necessary component of businesses’ digital transformation plans. But what exactly is cloud computing?

What is cloud computing?

Cloud computing is, in its simplest terms, the delivery of computing services over the internet, or the “cloud”. These services include databases, storage, servers, software, analytics and intelligence. The cloud refers to a physical network of servers that host data. Users can then access this data by connecting to the internet.

The cloud is a critical global online technology. Interest, adoption, development and investment in cloud computing have increased since the onset of the Covid-19 pandemic. Moving to the cloud supports business with its operations in the new era of working, offering convenience and connectivity regardless of where teams are located.

Due to its on-demand nature, IT resources provided over the cloud come with pay-as-you-go pricing to help businesses manage their operating costs.

What is cloud migration?

Cloud migration refers to moving a company’s digital assets, databases, services, IT resources and applications from its current premises over to the internet or onto the cloud. It can also involve moving these items from one cloud to another, which can be done for various reasons, including to decrease costs or increase efficiency.

Among European organisations, cloud migration is a key priority, with 70% of businesses stating that moving more workloads to the cloud is their most crucial cloud-based action, computer software company Flexera reveals. In addition, 59% of European companies want to centre their cloud activities on optimising their current use to reduce costs and 50% want to progress with a cloud-first strategy.

Benefits of cloud computing

By 2025, the cloud computing market is projected to be worth £746 billion ($832.1 bn), a MarketsandMarkets report states, based on a compound annual growth rate (CAGR) of 17.5%. Over 100 zettabytes of data — the equivalent of a trillion gigabytes — will be stored in the cloud by the middle of the decade, too, Cybersecurity Ventures states.

Cloud computing is here to stay and it’s rising in prominence in businesses’ IT must-have toolkits. Adopting and updating cloud computing enables businesses to advance their operations and prepare them for future digital transformation.

Moving to the cloud has many benefits, including increased flexibility, scalability and cost saving. With cloud migration, organisations can quickly and easily set aside resources as needed without incurring upfront infrastructure costs. Additionally, cloud migration can help improve disaster recovery planning and reduce downtime if an outage occurs.

Here, we look at some of the main benefits of cloud computing in more detail:

Increased security and compliance

At their very core, cloud-based systems include security and compliance to protect businesses’ workloads and data to ensure business-critical and sensitive information is safeguarded against cyberattacks as much as possible.

Modern cloud solutions offer a wide range of security solutions, including tools to gain visibility into businesses’ networks, isolation and segmentation of critical systems and various malware detection services. The cloud also offers advanced authentication methods, such as password-less login through two-factor authentication using security tokens or biometrics.

A “shared responsibility” model is present in cloud computing systems, with global companies such as Amazon building their cloud offering around providing a secure network. Under this model, individual businesses commit to being responsible for their part in cloud security. Almost 94% of small-to-medium companies (SMBs) reported their appreciation for the increased security associated with the cloud, a Microsoft Office 365 survey reveals.

Better opportunities to scale

Flexibility and adaptability are key components of cloud computing. Gone are the days of fixed costs associated with existing infrastructure, such as assets and equipment. The ability to scale up and down as needed is another reason many businesses choose to move to the cloud.

Scalability is particularly beneficial for businesses that experience seasonal fluctuations in traffic and usage. Cloud migration allows businesses to quickly scale up to handle additional demand and taper down once the demand or season has passed, saving them operational costs without disrupting customer experience or business performance.

Moving to the cloud enables businesses to free up unnecessary space and spend to redistribute it towards business opportunities to innovate, evolve and grow.

Efficiency equals lower costs

Moving to the cloud improves IT processes while lowering operational costs.

In a survey conducted by Microsoft Office 365, 82% of SMBs said they experienced lower costs after adopting cloud technology and 70% said they reinvest their savings into their business.

Cloud computing and migration costs are also often significantly less than setting up a new data centre. In addition, unlike a fixed on-premises infrastructure cost, as the costs of a cloud solution are variable, businesses can save money by only paying for what they use.

Analytics, automation and artificial intelligence (AI) power a rising number of cloud operating models today, boosting efficiency and subsequently saving around 30-50% in ongoing operations.

Agile integration

Cloud computing means businesses can access a standardised service similar to appliance-based IT. This type of service can be set up in minutes and has been found to save approximately 50% of the time required to establish and initiate such technology. The cloud enables businesses to quickly respond to consumer demands and operational needs by supporting them in implementing new processes, systems and features.

Moving to the cloud encourages integration as it provides a seamless and effective way to connect various systems and improve overall simplicity and efficiency without compromising security.

Integrating cloud-based services can also improve business operations, including those that extend to sales and marketing, such as website functionality. For example, by using the cloud, businesses can add customer data to a cloud-based customer relationship management (CRM) application. In turn, this helps businesses to enhance their websites by providing access to information, such as accounts, contacts and projects.

Access to a simplified IT management system

Access to data and services from anywhere and from any device is another reason many businesses choose to move to the cloud. Cloud migration allows employees to access their company’s website from their own devices. It helps to improve the overall experience and productivity for remote, hybrid and on-site workers who can access business applications and data from anywhere around the world.

Business operations can continue regardless of any interruptions to physical machinery, overcoming problematic disruptions to organisation, workflow and systems. Cloud computing also comes with backup and logging capabilities to offer further protection, as it can perform disaster recovery following an outage and identify its cause. All of this can be done remotely, without IT engineers needing to be on-site, providing a flexible and sought-after solution for many businesses.

Cloud computing best practices

Before embarking on an initial migration to the cloud or a cloud computing overhaul, businesses must understand what’s involved in the overall process.

Moving to the cloud is instrumental to a business’s digital transformation, resulting in beneficial shifts throughout the company. It is vital to look at the cloud-based journey from start to finish to maximise its impact and minimise uncertainties or errors.

Here, we explore the best practices for businesses to adopt when moving to the cloud or updating their cloud-based strategy.

What are the cloud migration types?

There are several types of cloud migrations, depending on your needs, which include:

• Private clouds: A private cloud is used by one organisation and the cloud’s infrastructure is maintained by that organisation. Creating a virtualised server environment that can be managed internally offers increased privacy, control and flexibility.
• Public clouds: A public cloud is the most common option for businesses as it is owned and operated by a third-party service provider. It allows users to rent ready-to-use servers and software on powerful cloud servers and comes with the advantages of lower costs, reliability, scalability and no maintenance requirements.
• Hybrid clouds: A hybrid cloud brings together the benefits of private and public clouds, allowing businesses to mix and match these options. For instance, using a hybrid cloud enables businesses to opt for public cloud capabilities when appropriate to help save costs

What can be migrated to the cloud?

Almost anything can be migrated to the cloud, including:

• Databases such as those used by Oracle, MySQL, MongoDB, PostgreSQL and SQL Server
• Email services such as those provided by Amazon Web Services, Google Cloud Platform and Microsoft Azure
• File storage such as Amazon S3 or Google Drive
• Virtual machines, which you can use to run servers and applications
• Platform as a service, which lets you build and run applications, like those provided by Amazon Web Services, Google Cloud Platform and Microsoft Azure

How does the cloud migration process work?

The process of cloud migration can vary, but it includes several key stages:

• Planning: During the planning stage, businesses will determine whether a move to the cloud is appropriate for their organisations and, if so, which services best suit their needs. Businesses will identify and hone their strategies, producing their business case and, therefore, the value of the move.
• Preparation: To get ready for cloud computing implementation, businesses will focus on the finer details, including what services to move, where to move them to and when the most appropriate time to move them is, considering the needs of the business and any specific operational considerations. The preparation stage is necessary to ensure that a business’s infrastructure is compatible with cloud services and can accept the traffic of new users.
• Execution: During the execution stage, a company’s team will migrate its data and servers to the new cloud environment. Existing applications may require modernisation, conversion to new cloud-native applications and transformation to updated infrastructure and architecture. Automation also plays a crucial role in cloud management and migration.

How long does cloud migration take?

The time it takes to complete a cloud migration varies based on a number of factors, including the size of the business, the amount of data a business needs to move and the complexity of the business’s infrastructure. It’s possible to perform a partial cloud migration quickly, although this may increase the risk of downtime. A complete migration can take months, depending on these factors and how much time a business wants to devote to the process.

Make your cloud computing and migration a success

For more information on how your business can move to the cloud or advance its existing cloud-based strategy accurately and effectively, contact ait Systems for support today.

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