The Impact of Cloud – My colleague who currently runs digital media advertising often complains to me about the IT division in his company. According to him, every year there are always IT procurement, maintenance, and development projects that cost a lot of money, but there is no noticeable impact on the business, and in fact, the core business of his company is digital marketing, not IT.
The Impact of Cloud Computing on Business
For those of us in IT, we will definitely submit proposals for IT development so that existing technology does not become outdated and performance can be maintained. However, sometimes this is not very popular with the business side, because the impact on the company’s business may not be immediately apparent. But if we don’t keep up with technological developments, the company will fall behind in today’s technological competition. This may have been a dilemma for CEOs in the past, but today it should no longer be a problem.
Using cloud vendors can be the answer for companies that need a reliable IT system without the headaches, especially for those who don’t have an adequate IT team. So what can the cloud offer businesses? Below, I will discuss the 5 + 1 positive impacts that the cloud has on businesses (not just the IT division).
1. Impact of Cloud on Resources
When we talk about efficiency, what comes to mind is savings, or usage that is commensurate with the results obtained. When we talk about conventional IT procurement, we are talking about a large initial investment, because we need to make projections for the next 3-5 years (when we don’t know what the business will be like in the future).
By moving to a cloud vendor, there is no longer a need to think about the amount of investment that will be needed over the next 5 years, or even the next year, because with cloud technology, companies only need to spend what they use at that moment. The cloud converts CAPEX into OPEX. Indirectly, using a cloud vendor also reduces the need for IT personnel dedicated to projects and infrastructure maintenance, allowing those personnel to be allocated to projects that are more critical to the company.
2. Risk Transfer
The nightmare scenario for CIOs is when their IT experiences downtime or data loss, regardless of the cause, as this can have a tremendous impact on the company’s business. Such risks cause them to lose sleep, and the solutions are very complex and costly. Cloud vendors (generally) come with standardized cloud platform designs to provide reliable SLAs. Typically, cloud vendors offer SLAs between 99.5% and 99.9%. With these target SLAs, companies can transfer their IT risks to cloud vendors, because in addition to having targets, they also have clear penalties if they fail to meet those targets.
Cloud vendors are also the right choice for risk transfer because they are professionals who are experts in cloud IT infrastructure. They focus solely on maintaining cloud performance to meet SLA targets.
3. Simple Management
One of the most complicated things experienced by the IT division is the management of assets and human resources. Once again, this is not actually the focus of the IT division. Companies can “pass it on” by choosing a cloud vendor as their IT system provider. How is this possible? Because when using a cloud vendor, the equipment, licenses, and human resources used do not belong to the company, but are the property and responsibility of the cloud vendor.
4. Follow technology trends
Technological developments can be either friends or foes. When companies are able to keep up with or even set technological trends, technology becomes their friend. However, if companies are unable to keep up or are even apathetic towards technological developments, this will certainly become a problem for them in the future. The major problem is that technological development is advancing at an extraordinary pace, and keeping up with it is no easy task (the costs are also sure to be high). With the cloud, it is the cloud vendors who will handle technological development, while companies can simply use and enjoy the benefits. Make technology your business ally, not an adversary that makes your company look foolish in the eyes of competitors.
4. Focus on business
Some companies have very large IT divisions, which can even be larger than other divisions, even though their core business is not IT. Currently, if a business cannot focus on its core business, it can be difficult for them to win in competition. By outsourcing IT matters to cloud vendors, the existing IT team does not need to be too large and they can focus on applications that are important to the company’s business.
5. Bonus: Innovation
Sometimes companies do not realize the importance of innovation in business. Most think that if the business is stable and growing, innovation is no longer necessary, just run it as usual and the company will be fine. “Innovation distinguishes between a leader and a follower.” That’s what the late Steve Jobs said. When a company innovates, it opens up opportunities for itself to become a leader in the competitive market. When a business can focus, costs have become efficient, and technology is no longer a barrier, that is when the company is ready to enter the realm of innovation.
Greetings,
Daniel Setyahadi – Sales Manager
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