It's no secret that cloud computing is on the rise. The growing number of enterprises that are jumping on board with the technology each year is evidence that the cloud is poised to become the standard in business practices in the near future - if it isn't already.
Statistics point to widespread adoption
A report that was jointly conducted by SAP and Oxford Economics and published in February surveyed 200 business and IT executives on the subject of cloud computing's impact. The study found that 69 percent of enterprises expect to make at least moderate investments in or migrate core business functions to the cloud within the next three years. A further 44 percent are currently relying on some form of cloud computing to launch new business models, and this figure is projected to rise to 55 percent in three years.
The report also noted that 59 percent of respondents said they currently use cloud-based applications and platforms to manage and analyze their data, a figure that reflects the increasing importance of analytics and big data throughout the business world. The ability to automate tracking transactions and information exchanges can be a big advantage for companies, and the cloud enables them to achieve high levels of automation.
SAP reported that cloud computing is transforming enterprises in developing new products and services (61 percent), new lines of business (51 percent) and entering new markets (40 percent). These were the three areas that respondents indicated were most prevalent. In addition, 58 percent of respondents predicted that top-line revenue growth will be increased by cloud computing in three years, while 67 percent indicated they see the cloud changing skill sets and transforming the role of HR.
The role of cloud computing in business is expanding and likely to be regarded as a vital component to success within a few short years. This sentiment was confirmed by the 79 percent of survey respondents who agreed that cloud computing has had at least a moderate impact on business performance, with 31 percent indicating that the cloud's impact has been transformative.
Expansion creates added pressure to maximize the cloud's effectiveness
CloudTech contributor David Belanger suggested that widespread implementation of the cloud will give birth to new challenges for enterprises, such as maximizing the positive effects of data analysis and getting more than proportional value. Since everyone is using big data these days and the field appears to be growing, it will become increasingly important for companies to be ahead of the curve in terms of ROI.
"The Internet has significantly altered almost every facet of communication."
Belanger remarked that the business world's relationship with information has been fundamentally changed by new networking technologies, which increase the number of hours each day that people can generate and consume data. The Internet has significantly altered almost every facet of communication, which has in turn impacted the way that businesses function.
However, the current boom in data expansion is likely to be more impactful than any of its predecessors in terms of volume, volatility and variety, according to Belanger. The emergence of various new devices that connect to the Internet has facilitated the largest flow of information in the history of humanity, he said, and the biggest question surrounding this development is whether or not the actual value of the information will increase proportionally, or whether its impact will be lost due to oversaturation.
As more people and organizations use the cloud for crucial functions, the amount of data that is transmitted is going to grow as well. Ensuring that the value of the information is not comprised will be a major obstacle for users going forward.