Hosting applications on cloud platforms may not be an enterprise standard, but it is becoming increasingly common. The benefits include on-demand availability, faster deployment, agility, scalability, and elasticity, allowing systems to grow as business demands grow while reducing costs.
According to Gartner, public cloud services spending is expected to grow 18.4% in 2021 to reach $304.9 billion from $257.5 billion in 2020. The cloud may account for 14.2% of the total global enterprise IT spending market in 2024, compared to 9.1% in 2020.
The global pandemic showed that all businesses need to go digital to survive. The cloud offers greater accessibility, higher speeds, lower costs, and increased access to cloud-native technologies. Several cloud-based technologies are available today. This includes machine learning and advanced analytics that companies can use to reduce costs, improve customer experience, and respond quickly to current market conditions.
How do cloud-native technologies create innovation?
Many business owners have been using cloud computing technologies for many years without realizing it. For example, online banking and online payroll processes have been in use for several years, and both use cloud computing technologies. However, in recent years, it has gained prominence and changed the way executives viewed technology.
Cloud computing has become the backbone of app-based and data-driven tech ecosystems helping businesses manage change and development. In 2021, cloud service providers have also begun providing multi-cloud or hybrid cloud solutions to help businesses integrate their entire ecosystems.
Multi-cloud allows businesses to integrate different platforms from different providers. It makes it easier to communicate and share data with other people in the supply chain, irrespective of their apps or data standards.
A hybrid cloud combines a private cloud with one or more public cloud services. It uses proprietary software to enable communications between each distinct service.
Cloud-native technologies have the potential to be innovative and create value in several aspects.
- Worldwide reach
Cloud computing offers agility and worldwide reach that would have been cost-prohibitive for most businesses. It also significantly diminishes risks and maintenance costs for a worldwide software and infrastructure platform. Service providers have begun incorporating the best practices in cloud computing technologies, mobility, big data, and analytics helping businesses create innovation.
- IoT (Internet of Everything)
The Internet of Things describes the network of physical objects that have sensors, software, or technologies embedded in them for connecting and exchanging data with other devices over the Internet. The Internet of Everything expands the Internet of Things concept by adding links to data, people, and business processes. Most IoT systems use a large number of sensors to collect data, which would otherwise have been impossible without the cloud.
- Business process enhancement
Cloud-based solutions help streamline your business processes by accelerating processes, increasing transparency, and improving business performance. Integrating business processes with cloud computing technologies can help organizations reinvent their business model.
- Creative collaboration and approach
Empowering employees with modern cloud collaboration tools can help maximize productivity and creativity. It can help geographically dispersed teams to collaborate from anywhere, bringing the best creativity to any business. It also helps simplify access to insights and information, allowing all employees to be more proactive, make better decisions, and improve customer experience.
- Customer value creation
Value creation begins when you eliminate or minimize waste from an organization. Cloud-based ERP helps waste reduction across the enterprise. Intelligent cloud ERP allows businesses to leverage digital capabilities like automation, collaboration, and real-time visibility from a single data source.
By adopting cloud technology, businesses can create long-lasting value and long-term profitability. The cloud helps create a flexible assembly model, enabling companies to transform their business models quickly. Businesses are now linking data and services to create new and innovative applications or business processes.