Cloud computing has been making waves in the business world in recent years.
Due to its great benefits, it is a computing solution that every business should consider adopting. While some businesses are already using the cloud extensively, others have been slow to join the fray.
Here is a look at a few industries that are likely to switch to cloud computing in 2014:
Benefits of Cloud Computing
The main reason why businesses are attracted to cloud computing is because of its cost-saving benefits.
The cloud is easy and inexpensive to implement, and it can eliminate the need for costly hardware, software and licenses, as well as reduce IT labor costs. As such, it enables businesses to achieve greater economies of scale.
Additionally, it provides seemingly unlimited computing power and storage space, and it can streamline processes to help companies save time and increase productivity. It also makes it possible for business owners and their employees to access company data from any place that has an Internet connection.
Other benefits of cloud computing include faster and easier deployment, more effective monitoring of projects, quicker response to unforeseen events and secure data backup and recovery.
Banks have been comparatively more hesitant to use the cloud because they are reluctant to leave their sensitive data in the hands of outsiders. However, this is beginning to change as cloud service providers are taking various measures to improve security, one of which is the encryption of data.
According to a PricewaterhouseCoopers report, about 71 percent of the financial services executives who participated in a recent survey said that they are planning to step up their investments in cloud computing.
By adopting the cloud, banks can save on IT costs, develop new products more quickly, make their data more accessible, protect them against data loss and meet the needs of their customers more effectively.
The insurance industry is another industry that has been slow in embracing the cloud, but more insurers are beginning to allocate a larger portion of their IT budgets to cloud computing.
Following the recent economic crisis, many insurance companies have been seeing a decline in the number of new customers, and the situation may worsen after the implementation of Obamacare this year.
In order to remain profitable, they are turning to the cloud to reduce IT costs and streamline complex tasks.
Similar to banks, law firms need to handle a lot of confidential information, and many of them have been shunning the cloud because of security concerns. However, due to improvements in cloud security, many lawyers began to warm up to the concept of cloud computing in 2013.
According to the 2013 ABA Legal Technology Survey, about 31 percent of lawyers said that they were using the cloud to manage their firms last year, and the figure is expected to rise in 2014.
Law firms can use cloud computing for a wide range of purposes, including storing data, document management, data backup and recovery, and case management.
As cloud computing continues to gain acceptance, it will not be long before it becomes the norm in the business world.
Businesses that wish to stay competitive should adopt the cloud as soon as possible.
About the Author: John McMalcolm is a freelance writer who writes on a wide range of subjects, from cloud computing to biographies of famous entrepreneurs such as Richard Branson (CEO of Virgin Group) and Cecilia Ibru (CEO of Oceanic Bank).
License: Creative Commons image source