As new digital, mobile, and analytics capabilities transform daily business and consumer life, cloud plays a huge role. Cloud is helping organizations adapt to these new trends to better meet market demands and expand their businesses. According to a recent IBM Institute for Business Value study, cloud computing is empowering businesses to innovate across industries in a variety of ways. From its research, IBM identified six game-changing business enablers powered by cloud.
1. Cost flexibility
More than 31 percent of executives surveyed cited cloud’s ability to reduce fixed IT costs and shift to a more variable “pay as you go” cost structure as a top benefit. Cloud helps reduce IT costs by transitioning from capital expenses (enterprise software licenses, servers and networking equipment) to more fluid, less expensive operational expenses. With cloud, the organization essentially pays for what it needs when it needs it, following a pay-per-use model.
2. Business scalability
A third of executives found business scalability, in IT as well as in business operations, a top cloud benefit. According to IBM, “By allowing for rapid provisioning of resources without scale limitations, cloud enables a company to benefit from economies of scale without achieving large volumes on its own.” The scalability provided by cloud promotes company growth and provides greater options.
3. Market adaptability
A third of executives cited market adaptability, the ability to respond quickly to changing customer needs and market demands, as a top benefit of cloud. Cloud allows businesses to rapidly alter products, processes, and services to align with shifting customer preferences.
4. Masked complexity
Cloud provides businesses with the ability to hide some of the intricacies of their operations from the end-user, allowing for a broader range of customers. Because complexity is veiled from the end user, a company can expand its product and service sophistication without also increasing the level of user knowledge necessary to utilize or maintain the product or service. Twenty percent of executives noted masked complexity as a top benefit.
5. Content-driven variability
More than 50 percent claimed that “addressing fragmented user preferences” is important for their organizations. Cloud’s ability to store more information, due to its expanded computer power and capacity, provides greater opportunities for customization of products and services. Because of cloud, businesses can create a more customer-centric experience by adapting to slight changes in user-defined context.
6. Ecosystem connectivity
Cloud enables collaboration with partners, customers, and the community at large by providing a platform on which disparate groups can share information, resources, and processes. A third of executives cite this as a major benefit.
Organizations are exploiting these top business enablers empowered by cloud to drive innovation and create a sustainable competitive advantage. Cloud computing unleashes new more efficient and innovative ways of doing business that organizations should absolutely consider employing. Are you taking advantage of cloud capabilities and the opportunities it offers?