Cloud computing is becoming more and more common as it conveniences people more and more. And in the day and age, we live we live in nowadays, everything comes down to convenience. For those of you who don’t know cloud computing refers to using some sort of data that you want to access for some time n the internet without having to actually store it on your device.
Why is this called cloud computing you ask? Well, there is a reason for that too. As the basic fundamentals of many of the things that people want to convenience themselves by using is quite irrelevant. So it is metaphorically called as cloud computing as it portrays an image of a person reaching out in the sky and the thing that he/she wants to use or access magically appears. And once they are done with using the object/service, the object would itself disappear. So you won’t have to worry about storing it or anything of that sort.
This takes the pressure of your storing the actual device off your shoulders and lets you access whatever it is that you want doing access for some time and then you can just put it back. Considering the convenience that this model provides. Many eCommerce platforms have started operating like this and have started seeing success at great length. This basically means that many eCommerce platforms out there have started preferring renting their services rather than selling them.
Cloud Computing in our daily life
What do you do if you want to convert a file that you have to pdf form. Or edit a picture, to make a thumbnail? You just write what you need to do on the internet. And you end up with results, that will do what you want to do quite easily. And most often even for free. For instance, many bloggers use wordcounter.net to just go and check the number of words. That they have written or copy-paste their content on sites to see if there is any grammar mistake. They don’t need to permanently own anything to get each and everything of this sort done. You just use these services over the web and be on your merry way.
Now think if each and every service out there is like that’s. Just a click away for you to use it, that is the idea presented behind cloud computing. And eCommerce is playing a very connected and advanced role in spreading the awareness out there. In a world, where we get food delivered on our doorstep without ever moving out. And ride a stranger’s vehicle to go from one place or another ( Uber ). Without ever having to worry about the petrol money. Or worrying if the car is damaged/maintained or other stuff of that sort. We are becoming more and more embedded with cloud computing without us even realizing it. We use platforms like Netflix, Amazon, Uber, Airbnb. And each and every one of them are rented platforms and are linked with cloud computing
How does Cloud Computing work?
Companies and businesses basically rent the services around anything and everything that they need and access it with a 100 percent liberty and freedom. This really helps businesses avoid the up-front expensive cost. And saves them from the IT intricacies that buying that specific program/software would have brought with itself. Moreover, cloud computing covers a big load of anything that you are planning to do. It covers everything from basic storage of stuff to networking, running automated campaigns as a business, making catchy themes, running artificially intelligent programs and anything standardly office related. Simply put, as we said, nearly every service that you can think of access is available on the cloud. And the number of things are increasing as people become more and more invested in cloud computing
Importance of Cloud Computing
Cloud computing has had its fair share of impact on nearly every field nowadays as if some aren’t using it directly, they are referring and using it indirectly. But cloud computing has nonetheless embedded itself knee-deep in our new technologically advanced world. To elaborate on that point here is a stat
451 Research predicts that around one-third of enterprise IT spending will be on hosting and cloud services this year
Types of Cloud Computing
Cloud computing can be divided into three sub-models: IaaS ( Infrastructure as a service ), PaaS ( Platforms as a service ) and SaaS (Software as a service )
Iaas basically means the provision of basic computing services like servers, storage, and networking resources. Or put simply it is basically a virtual data center. Now moving on to Paas. Paas refers to a cloud computing model where a 3rd party is involved in delivering of hardware and software tools to users over the internet ( often these tools are the ones needed for application development )
And lastly comes SaaS, which is one of the most common that is being sold out there in the market as of this moment, as many of you already know. SaaS is a software deployed and liberated over the internet for the whole world to be used and accessed. This means a software that runs on the internet rather than working after being installed in an actual computer. Most of the services related to everything that you use over the internet is SaaS like Netflix, Uber, Airbnb, Amazon
eCommerce and Cloud Computing’
A lot of eCommerce services out there as we said have started using cloud computing. This helps the provider keep the deriving recurring income. While the user has the ability to barge in whenever he/she feels the need of using the service being offered. Scaling eCommerce platforms through cloud computing has helped develop quite a few brands out there. For instance, all of the email marketing services that are being provided out there work through cloud computing, platforms like MailChimp and Saleshandy.
Benefits of Cloud Computing to eCommerce
Cloud Computing lets eCommerce businesses be free of their dependency on the traffic spikes. ( which is a temporary inflow of traffic on a launch of a product or an add campaign ). Cloud computing equips these businesses with more than their usual stability. As they can now host advanced data centers for peace of mind.
New Business ideas
When cloud computing came, it opened the eyes of a lot of investors about the possibility of things that could be done. And each and every one of them would be making our society more and more advanced in one sense or another. So many of the young entrepreneurs are getting invested in cloud computing related stuff. As they see the immense potential they have. This means a lot of brainstorming at the field at hand. And a lot of revolutionary ideas coming out, some of which will actually materialize. And impact the world in a better way.
Cloud web hosting platforms are quite fast and have made the overall speed of eCommerce skyrocket. This basically means that people are able to access online sites faster. And go through them at a better speed, the lack of which would have otherwise ruined their experience. Here is a stat to support that claim
40% of online shoppers will abandon a webpage if it takes more than 3 seconds to load. Additionally, 79% of shoppers who are dissatisfied with website performance are less likely to buy from the same site again.
So as cloud computing helps eCommerce stores becomes faster, they are able to make more and more sales then they were before capable of
Takes out the big investments
One doesn’t have to own a car to ride a car, or even going out of his/her house. And you also don’t have to worry about the high fares that taxis used to cast. You can’t just keep uberpooling your way anywhere you want. Moreover, let’s look into one more example. Just like you rent a hotel if you go to visit somewhere, you just use it for a few days and then go back. Buying that hotel just so you can stay there a few days is quite absurd ( and impossible for most people ). And this for a place that you just went to visit once, sounds ridiculous right.
Well many of the software that are being offered online nowadays were priorly offered for thousands of dollars. One had to either buy and own even if he/she was going to use it once and then sell it to someone else. This was a high investment that many people pooled their money to make most of the time. But cloud computing has left no need for things of such sorts
As many business have started operating through cloud computing nowadays. The platforms have built themselves to more and more secure as now a lot more people would be renting their platforms and relying on them. This also means that they optimize their sites to protect the user’s information more and better than ever before.
Cloud computing in security also means that your data will always stay safe and not be lost even if a personal computer or internal network fails, no information is lost.
Research is one of the most important aspects of any field and one of the main points that helps a field actually flourish in reality. Cloud computing proves quite helpful when it comes to conducting effective research and development of a developed as well as a new business. Businesses can explore more and more services without feeling bound. And see for themselves whatever it is that works best for them. This has already, and will continue to help alot of people as time passes to grow their businesses and turn their ideas into reality
A changing market
In this everadvanced world, people keep on striving and growing each and every day. And hence alot of advancements are made each and every year. Keeping up with these advancements can very much help any business stay ahead of the competition and develop a well-remembered brand. Cloud computing is one of those many things that has nourished alot of people to stand out of the crowd. And make a name for themselves just be being an advocate of staying advanced and up-to-date.
Also due to the ever-growing cloud computing market, you can market your business in various ways without ever having to worry about upgrading your infrastructure. Social Media Marketing is a very big part of digital marketing nowadays, in fact the most important part, there are a lot of Softwares out there that you can rent to see what you should be doing better with social media marketing. And get started with it as soon as possible.
Email marketing is another gem that has been exceptionally advanced thanks to the world of cloud computing. And it highly helps a lot of people each and every coming day. This is done through platforms like MailChimp and saleshandy that offer their services through cloud computing. And help people by renting their email marketing services for a limited membership, and also come with free plans. So, one could easily infer that cloud computing has had a very big impact on email marketing as now you can track the amounts of email that were opened, how much they were spent on, and how many of the receivers actually clicked the links they were given without owning any advanced Softwares, but rather just renting platforms of this sort rather at a quite cheap price
For those of you who don’t actually know what Email marketing actually is. To clarify, it is exactly what it sounds like, It is interacting with the customers on a personal level promoting your product in a good way and making a loyal customer base, all through emails. Email marketing is one of the best ways to market your product. Based on the data from 2018, it was ranked the most effective marketing channel !!. Surprisingly, right? you might be wondering why. Well, this is probably due to the sheer number of people using emails as:
data from 2017 shows that about 85% of adult internet users have an email. This is more than the search engine’s percentage by 15% and social media’s by 22%
So, Without a doubt, email marketing is immense potential and importance in the business world. To further elaborate, here is another fact about email marketing, According to the Direct Marketing Association. You get $40 for every $1 that you spend on email marketing. Which are a fantastic return on investment and something that you rarely see with other platforms? If you want to know more about what email marketing is than optinmonster has written a great article on just that so do give it a look if you’ re interested,” Email Marketing Made Simple: A Step by Step Guide [+ Examples]“
Cloud Computing Security
Security can be a very big aspect of any business, but it becomes even more concerning when you are offering your services over the cloud. As even one bad experience with security can completely ruin the overall trust that a platform has built over a course of years. As many of the cloud computing platforms out there take personal information like credit card information. This is one aspect that cannot be slacked around. Many cloud computing services hire programmers and even white hackers just so that there isn’t even a glitch when it comes to this regard.
Talking in an holistic sense, cloud computing infrastructure being monitored by cloud provider’s engineers dedicated to protecting that infrastructure are way more secure than In-house systems managed by a team with many other things to worry about
Despite all this, there is quite a bit of concerns that still remain especially for those cloud computing platforms that have to move their data between many cloud services. This concern has even lead to more and more tools being made that can identify the fraudulent use of data in the cloud, unauthorized downloads, and malware. But even using these tools have their own side-effects like a decrease in ROI on investment of the cloud by five to 10% . And not only this as it also impacts performance by five to 15%
Cloud Computing and Geography
This is one of the very first questions that pops up while talking about cloud computing. It’s basic crux is whether cloud computing is affected by where you are accessing it from. So let’s take a look into and see if geographical locations can actually have an impact on provision of cloud computing services. So without further ado, let’s start addressing these curiosities
The simple answer is “Yes” the location of your server and where you are accessing it from can make quite a difference, this is referred to as the “latency issue”. This is not the only issue that comes along with cloud computing and geography, this is the “data sovereignty” issue. This means that companies have to be concerned about where their data is being stored and processed at. Let’s understand this with an example, if a company’s customer data is being stored in data centers in the US or (owned by US companies) it could be accessed by US law enforcement. And in a result of this, big cloud vendors have been building out a regional data center network so that organizations can keep their data in their own region and not be subject to laws that might ruin their customers’ sovereignty
Answering some questions about cloud computing
Is Netflix a cloud computing platform?
Yes, Netflix is a cloud computing platform and one that is quite a prompt example of how cloud computing platforms have embedded themselves in our society within only a few years
What is cloud computing adoption doing to IT budgets?
Cloud computing as it turns out shifts more investment towards revenue expenditure rather than of capital expenditure. For those of you who aren’t familiar with these terms, capital expenditure basically means a huge investment that businesses have to make ( like buying machinery and expensive Softwares ). And revenue expenditure refers to a day to day minor expenses of an entity. So this basically means that cloud computing has highly reduced the need of capital expenditures in the industry as a whole in most cases.
More and more new entrepreneurs and CIOs ( Chief Information Officers ) are turning to cloud computing to in order to increase flexibility and relieve pressure on capital budgets. or as ZDNet’s survey of IT budget predictions says:” “CIOs are increasingly turning to cloud infrastructure and services in order to increase flexibility and relieve pressure on capital budgets,”
This doesn’t, however, mean that cloud computing services are cheaper in every regard as many times butting the software can save people from a recurring payment every month which would actually amount to way more in the long term
What is a cloud computing region?/ What is a cloud computing availability zone?
As we have discussed, cloud computing services are operated from big data centers from around the world. Each one of them cover a certain region around the world, and these regions are referred to as computing regions
The big regions around the world are divided by AWS which are basically sections like London, Oregon, and other availability zones. This really helps a software function at its optimal level
Is WhatsApp a cloud computing platform?
Yes, WhatsApp is also an example of a cloud computing platform. To elaborate, Whatsapp’s sole survival is based on cloud . According to few sources , Facebook runs Whatsapp on IBM public cloud
How does one build a business case for cloud computing?
To get off to building a business case for cloud computing one needs to start off by knowing what their actual infrastructure in work right now costs. There will be alot of things to be considered in the process of actually analyzing the viability like cost of physical hardware — servers and details of specifications like CPUs, cores and RAM, plus the cost of storage. And the cost impact of each of them would vary depending on whether you want to completely rebuild them for the cloud or buy an completely new SaaS
One would also need to consider the price of people employed for maintenance of the software, but this doesn’t prove to be too high most of the times so not something entirely concerning. The competition for the software that you would be providing would also need to be considered. As well as the running price on the market so that you don’t end up standing out in a negative in the very beginning of the project. And lastly rather, one of the most important aspects would be marketing or digital marketing
Digital marketing does have great potential. But the channel chosen can make quite a difference in cost as well as ROI , so this is another thing that needs to be considered rather quite eagle-eyed
Explain cloud computing with example?
Think of every service tht you could ever need only a click away, that is the idea presented behind cloud computing, and eCommerce is playing a very connected and advanced role in spreading the awareness out there. In a world, where we get food delivered on our doorstep without ever moving out and ride a stranger’s vehicle to go from one place or another ( Uber ) without ever having to worry about the petrol money or if the car is damaged or other stuff of that sort. We are becoming more and more embedded with cloud computing without us even realizing it.
We use Netflix, Amazon, Uber, Airbnb and each and every one of them are rented platforms and are linked with cloud computing spare capacity that they can easily use if there are customers that need more resources, which is why it is often used for less-sensitive applications that demand a diverse amount of resources.
What is Public cloud?
Just another name of the cloud, this basically means that people are allowed to access a huge amount of computing power over the internet whether that is IaaS, PaaS, or SaaS. One of the biggest benefits of working this way is that cloud/Public computing allows you to scale quite fast while you grow. Working at a big scale means that cloud computing platforms have
What is a private Cloud?
This is basically cloud computing but with a twist, this basically means that enterprises will have most of the benefits of cloud computing but without the control over data and services, because it is tucked away behind the corporate firewall. It targets and serves only a few individuals rather then the whole wide public. This is considered highly more secure then the normal way of cloud computing. This comes with its own pros and cons. For instance, on one hand this is highly more secure. But on the on the other hand, the services will only be accessible for a selected few companies which means that there is very low chance of creating the same level of economies of scale
What is Hybrid Computing
This, exactly as it sounds has the features of both the private as well as the public cloud. To further elaborate, it is an infrastructure that includes links between one cloud managed by the user (the private cloud”) and one or more cloud managed by a third party (the public cloud”). Here is an example, hybrid clouds offer their services only between certain premises and on public clouds
When was cloud computing actually invented?
Well, Cloud computing is said to have been invented by Joseph Carl Robnett Licklider in the 1960s. When he was working with his work on ARPANET to connect people and data from anywhere at any time in the whole world
Some cloud computing facts
60% of U.S. IT decision makers trust the security of the cloud.
Amazon Web Services is the leading cloud vendor with a 32% share.
The global cloud computing market is forecast to exceed $350 billion this year. This is an 18% rise since 2018 and the impressive CAGR is bound to continue.- MarketsandMarkets
By 2020, 22% of enterprise workloads will be handled by hybrid cloud platforms.- : Forbes
83% of enterprises will upload workload to the cloud by 2020 — 41% on public cloud platforms, 22% – on hybrid ones.- Forbes
According to research and predictions, cloud expenses are expected to amount to 70% of all tech spending by 2020.- Trend Micro
Public cloud spend is growing 3 times faster than its private counterpart. The first marks a 24% growth, while the latter – just 8%.- RightScale
In 2018, public cloud adoption reached 92%. It was 89% the year before.- RightScale
50% of enterprises spend more than $1.2 million a year for public cloud service.While another 13% spend the astonishing $12 million for the same amount of time.- RightScale
According to Bartoletti, now 60% of North American enterprises use public cloud platforms. Five years ago, this was at just 12%.- Computerworld UK
41% of enterprises are expected to rely on public cloud platforms by 2020.- Forbes
Dave Bartoletti from Forrester dubbed 2019 the year of global enterprise adoption of cloud. He and his colleague Lauren Nelson claim cloud computing will be the best way to turn rowdy ideas into functional software.- Computerworld UK
80% of organizations are predicted to migrate toward the cloud, hosting, and colocation services by 2025.- Computerworld UK
84% of enterprises run on a multi-cloud strategy.- RightScale
Serverless had 21% adoption in 2018, making it the fastest growing extended cloud service. This shows a 75% relative increase compared to 2017.0- RightScale
Cloud data centers will process 94% of workloads in 2021.
75% of all cloud workloads and compute instances will be SaaS by 2021.
The global cloud computing market is forecast to go over $650 Billion by 2025.
Cloud initiatives are expected to account for 70% of all tech spending by 2020.
As much as 80% of organizations are predicted to migrate toward the cloud by 2025.
In 2018, public cloud adoption grew to 92%.
IaaS is expected to reach $72.4 billion worldwide by 2020.
Serverless had a market share of 50% in 2018, making it the fastest growing extended cloud service.
As many as 84% of enterprises run on a multi-cloud strategy.
IaaS is the fastest-growing cloud spending service with a five-year CAGR of 33.7%.
The global cloud computing market is expected to reach $623.3 billion by 2023.
Cloud infrastructure spending surpassed $80 billion in 2018.
Companies like Amazon and Microsoft are receiving an ever-growing portion of their revenues from the cloud. In 2017, Amazon generated 3.2 million from their public cloud computing infrastructure division known as Amazon Web Services.
Security concerns about cloud computing are waning as more and more IT experts feel confident in trusting the cloud with sensitive data. A reported 60% feel adequately safeguarded against the potential risks of their databases being hacked.
According to Forbes, “More than 50% of IT spending will be cloud-based by 2018.” Increased investment in cloud computing will likely be seen across all industries as the cloud helps businesses save money by using staff more efficiently.–
Almost half of the agencies within the U.S. Government utilize the cloud. In fact, the government is thought to be the largest user of cloud computing technology.
Banks are the most active users within the cloud as a result of mobile banking apps, virtual transaction services like Paypal. And developing currencies like Bitcoin.
For most companies, the cloud is used to store files and as a means for backup and recovery. Currently, the cloud is being utilized for storage more than it is used for things like application deployment. However, this could change as the demand for cloud services grows and enables new business models
Migration cost of Cloud computing
Setting up a cloud computing platform is quite easy in the start. But shifting your cloud, once you are a bigalready set corporation offering your services through cloud computing, migrations can be quite hard. These big companies would need to work on which of the systems should be left running. And which of them need a shift to cloud computing. Shifting the whole of your company to the cloud can cost more than you anticipate if you are not careful about the scale of your project
A recent survey of over 500 companies claims that the need to rewrite applications and optimising them for the cloud probves to be one of the biggest costs. Especially if the applications involved were intricate and/or custom. 1/3 of these businesses that were in the survey say that they view high fees for passing data between systems as a challenge in moving their mission-critical applications.
Moreover, a recent report by Forrester says that the skills that are required for migration are both difficult a swell as expensive to find. And that is, even more, the case when organizations involved could find the right people to secure their sites and the transfer in the cheapest possible way. Lastly, 1/3rd of the surveyed also claimed that their software database license costs drastically increased if they moved applications.
History of cloud computing
Cloud computing first became popular when Amazon first became famous as it was a cloud operated business model. And one of the very first that many were seeing, whereas the first reference of the phrase ” cloud computing came in 1996. The cloud was a metaphor to symbolize networks of computing equipment in the original ARPANET by as early as 1977. And the CSNET by 1981 both of which were the predecessors of the internet itself
The concept of it emerged in the 1960s when time-sharing became popularized via RJE. And the concept became a further more known when computer bureaus started allowing companies to rent time on a mainframe. Rather than have to buy it themselves. But, this idea then became a bit unpopular when the computers (PCs) showed up. They made owning a computer much more affordable, and then in turn by the rise of corporate data centers where companies would store vast amounts of data.
The idea itself tried to drive its way to sunshine again and was finally able to do so along with Amazon as we discussed in the very first paragraph of this sub-heading. And the name of cloud computing will not be biting dust anytime soon, rather just keep on growing as time passes, as it has completely made the customers of businesses way more convenient then they were before of its comeback
The biggest cloud based companies
Now that we have talked so much about cloud computing. Lets look into some of the biggest companies that have reached where they are through cloud computing
- Microsoft: It is a renowned American multinational technology company with headquarters in Redmond, Washington. It develops, manufactures, licenses supports, and sells computer software, consumer electronics, personal computers, and related services.
- Amazon: Who doesn’t know Amazon, it is like the god of eCommerce. Its official full name is Amazon.com, Inc., and is an American multinational technology company based in Seattle. It focuses entirely on e-commerce, cloud computing, digital streaming, and artificial intelligence. It is considered one of the Big Four technology companies. Along with Google, Apple, and Microsoft.
- SalesForce: Salesforce.com, inc. is an American cloud-based software company headquartered in San Francisco, California. This company provides customer relationship management service. And also sells a complementary suite of enterprise applications focused on customer service, marketing automation, analytics, and application development.
- SAP: It is a German multinational software corporation that makes enterprise software to manage business operations along with customer relations. One of the most popular services of this platform is its ERP software.This company is especially famous for its ERP software. Its headquarters are located in Walldorf, Baden-Württemberg, Germany. And has regional offices in 180 countries.
- IBM: International Business Machines Corporation is an American multinational technology company, it’s headquarter is in Quartin Armonk, New York, with operations in over 170 countries.
- Oracle: Oracle Corporation is an American multinational computer technology corporation headquartered in Redwood Shores, California. The company sells database software and technology, cloud engineered systems. And enterprise software products—particularly its own brands of database management systems.
- ServiceNow: Another American based cloud company that makes cloud computing platforms for companies to help them manage their digital work
- WorkDay: This is an on-demand financial management and human capital management software provider company, also American
- Google: Well, who doesn’t know about the most popular search engine of our times
- VMware: A publicly listed American software company, that has its hands in cloud computing
The future of cloud computing
Many people analyse that cloud computing is going to be defining the coming era of eCommerce as you might have judged from some of the stats that we mentioned above in the article. But, cloud computing is still in its early ages since being truly active. And is adapting more and more as time passes. But the rise of cloud computing will truly rise when companies actually become comfortable with the idea of cloud computing. Some analysts estimate that only 10% of the workloads that could be move have actually been transferred across.
Cloud computing has highly embedded itself in the eCommerce world. And would find ways to embed itself and impact even further. And as time passes, there will definitely be evolutions that this industry would go through too. Moreover, out of a board of 100 analysts nearly 90 % said that cloud computing will have quite a big role to play in the evolution fo the world in the next 2 decades
Cloud computing also helps many companies to plan for the future and lower their costs as we discussed above in this article. Many companies have gained an edge on their competitors through this while other have managed their survival, which didn’t seem possible considering their conditions. To conclude cloud computing is definitely going to have a big impact on the coming world. And it is something that you should definitely look into
Hopefully, this article was helpful in informing you about cloud computing more and cleared you of some of your queries regarding cloud computing if you have any further cloud-computing related questions that you would like to ask. Feel free to ask in the comment section below. And if you are interested in learning more about digital marketing, as it is a big factor regardless that the business is cloud-based or not. We have a great article on just that so do give it a click if you are interested “Why is digital marketing important? 2020‘