When an organization chooses a new enterprise resource planning (ERP) system, One of the major decisions in adopting a system is whether keep it on-premises or move to the cloud. There are many companies that still believe in the regular on-premise application rather than switching to cloud software. But many service providers and organizations have now shifted to cloud delivery models which lead them to huge heights. This article will help you understand why the cloud is better than on-premise and is in more use these days.
Benefits of cloud computing
- Cost-saving: Cloud requires no upfront price. Organizations using cloud computing only should pay for the sources that they use. No protection or upkeep fees are included or related to the cloud. On the alternative hand, withinside the case of on-premise, the price is incurred for different assets as properly together with hardware, software, servers, architecture, etc.
- Accessibility: With cloud software, applications can be accessed from anywhere at any time via any device or a web browser. For example, If something needs to be changed urgently in the system, a person need not be present in the organization. He can handle stuff remotely.
- Availability: High availability is the ultimate goal of moving to the cloud. The cloud service providers are quite reliable in offering the services. They maintain an uptime of 99.9%.
- Competitive edge: Still many organizations prefer to go with the traditional way of data storage and management, here they miss out on very important advantages provided by cloud providers.
- Flexibility: Many a time happens that some services become deprecated or there is some crucial update that can lead to a breakdown. Here in such a scenario, On-premises will have to face a lot of challenges whereas with the cloud you can do any kind of update, changes at any minute.
- Business continuity: One of the important parts of business continuity planning is the securing of data. Storing the data in the cloud ensures the safe backup of the data during scenarios of power failure or natural disaster. The data is stored in a safe location and the quick access to the data again after a crisis allows the business to go on smoothly without the loss of productivity.
Comparison between On-premises & cloud
| Parameter | Cloud | On-premises |
| Initial Investment | High | Pay-as-you-use |
| Management of Hardware | Required | Not Required |
| Upskill of Manpower | High | Low |
| Disaster Recovery & Backups | Not adequate | Highly efficient |
| Local service providers | Required | Not Required |
| Uptime | Depends on Setup (Huge cost) | High(AWS guarantees 99.999%) |
| Modernization effort | Self Managed (High) | No Required |
| Focus on core business | Need regular intervention | Need occasional intervention |
Facts favoring a cloud-based Systems
Here are some of the amazing statistics by Gartner, Flexera, and many other renowned sources.
- The public cloud computing market will be worth $800 billion by 2025.
- By 2024, enterprise cloud spending will make up 14% of IT revenue globally.
- 70% of companies using the cloud plan to increase their budgets in the future.
- 36% of enterprises spend more than $12 million per year on public clouds
What is Cloud Computing?
Cloud computing is the on demand delivery of IT resources over the Internet with pay-as-you-go pricing. Instead of buying, owning, and keeping physical data centers and servers, you may get the power of technology services, inclusive of computing power, storage, and databases, on an as-needed basis from a cloud provider like Amazon Web Services (AWS), Google Cloud Platform, Microsoft Azure, etc.
Here cloud services are mainly divided into 3 category that depends on the organization’s use case. They are as follows:
- Infrastructure as a Service (IaaS)
IaaS consists of the primary constructing blocks for cloud IT Enterprise. In this service, you need to control your Application, Data, Runtime, Middleware, OS while your cloud company will control virtualization, Servers, Storage, Networking.
- Platform as a Service (PaaS)
PaaS gets rid of the want with a view to managing the underlying infrastructure and lets you to consciousness at the deployment and control of your applications. In this service, you need to manage your Application and Data, while your cloud company will manipulate Runtime, Middleware, OS, virtualization, Servers, Storage, and Networking.
- Software as a Service (SaaS)
SaaS provides you with a complete product that is run and managed by the service provider. Here you need not manage anything, just use the product or service as per your requirements.
Top Cloud Providers
There are many public cloud provider that makes a mark of their presence by providing various services to lots of organizations. Some of the main Cloud providers are Amazon, Microsoft, Google, Oracle, Alibaba, and IBM.
Here are the stats by Flexera 2021 state of the cloud report
Enterprise cloud spend
36 percent of IT Enterprise stated their annual spending exceeded $12 million, and eighty-three percentage said that cloud spending exceeds $1.2 million consistent with 12 months. These figures constitute a massive growth over the final 12 months wherein 20 percentage of firms said an annual spend of extra than $12 million, and seventy-four percentage said every year spend of extra than $1.2 million.
Some Fantastic facts and Prediction
- More than $1.3 TRILLION in IT Enterprise spending will be affected by the shift to the cloud by 2022
- By 2025, the data stored in cloud data centers will exceed 100 Zettabytes.
- Predictions show that spending for IT Enterprise cloud platforms will increase by 14% in 2024.
- Enterprises are running 47% of workloads and storing 44% of data in a public cloud
- Cloud costs will become cheaper in the future due to the competitive edge of multiple cloud firms.
- 50% of US government organizations are now using the cloud.
- ¾ of organizations using cloud services plan to increase their expenditure.
Companies using Cloud
Netflix
Netflix is the world’s leading Internet television network, with more than 200 million members in more than 190 countries enjoying 125 million hours of TV shows and films every day. Netflix connects to 100 million customers in 190 countries via the Amazon Simple Email Service. on 1,000 Amazon Kinesis shards in parallel to process billions of traffic streams
eBay
Imagine using eBay in the middle of an important offer. You outperform the other bidders and enter your purchase. Just when you feel that your article is within reach, the site crashes. That was eBay’s biggest concern when they decided to do this. Move your infrastructure with more than 1 billion entries to the cloud.
They made the transition to the cloud in less than six months and were implemented so quickly that they were six months ahead of schedule. Now eBay is using the cloud to experiment and work with machine learning to improve the functionality of its website.
Pinterest
Pinterest is a popular social media platform that has grown in popularity over the past few years. Pinterest has been using the cloud from the start. As Pinterest grows in popularity, the cloud can adapt to traffic and keep up with website traffic. one of the early successes of cloud computing, valued at more than $ 12 billion today.
Conclusion
Cloud computing is the latest technology that promises immense benefits to individual users and organizations. with the cloud, organizations save two utmost important things i.e Time and Money. It’s a new revolution in almost every industry that can be named. Taking overall prediction, it won’t be wrong to state that “In future, every company, some way or the other will definitely use cloud”.
