Why Are Mid-Sized Businesses Choosing Cloud?

Cloud computing is becoming more and more popular for businesses and organizations of all sizes. With all of the benefits of cloud services, the leading analyst research firm, Frost and Sullivan, identified 9 key factors that are resonating with mid-market businesses and causing them to choose cloud solutions.

Reasons MidSized Businesses Choose Cloud

1. Defer/Avoid Expansion of Data Center Facilities – Most on-premise data centers lack redundant power, redundant backbone Internet connections, distributed denial of service (DDOS) mitigation systems, sophisticated fire detection and are running on aging hardware managed by overstretched and often unqualified staff.  All of these issues require a significant investment to rectify.  It is often more cost-effective to simply move your critical business data to a more truly secure location in the cloud.

2.  Strengthen Business Continuity – Growing, mid-sized businesses to look for ways to minimize the “little” outages that they had previously put up with out of necessity as they learn to understand the cumulative loss of business these result in.  The Cloud is a natural fit for this problem as companies look to focus on what they do best and outsource their IT needs to companies who have IT operations as their primary focus.

3. Prepare for Disaster Recovery – As businesses become more and more reliant on IT infrastructure, they also have a greater and greater need to prepare for all or part of it to fail.  Cloud data centers have multiple systems in place to automatically recover from outages, enabling them to handle system failures much better than on-premise data centers.

4.  Earn a High Return on Investment – Return on investment is always an important part of any purchasing decision. Medium sized businesses have concluded that they can get a higher rate of return from outsourcing their needs to the Cloud.  Also, the low initial investment in cloud solutions enables the return on that investment to be realized quickly.

5.  Improve Security/Compliance – Security and compliance are two major areas that are only increasing in importance.  If businesses have any doubt about their ability to keep up with the increasing onslaught of security issues, trusting a cloud provider whose first priority is the security of your data is the obvious choice.

6.  Defer Server Purchases/Upgrades – The cost of purchasing or upgrading hardware is high enough, but often companies will buy hardware they don’t need or don’t end up using.  The Cloud gives you the ability to experiment with your business without incurring hefty IT costs.

7.  Shift from Capital to Operating Budget – There are two main finance related reasons your CFO/Controller prefers your servers in the Cloud. The first reason is that using a Cloud provider will make this area an operating expense instead of a capital expense. The second reason is that if it is not a capital expense, then you don’t have to get financing for it, which is more important than ever.

8.  Strive to Go Green – When you move to the Cloud, you begin sharing data center resources with others – generators, AC, systems maintenance, etc. You are reducing the resources required to support your business. That’s one of the core tenets of environmental stewardship. In most industries, there’s a significant trend in implementing green/eco efficiency in business systems.

9. Decrease IT Staff – This is last on the list because it rarely happens.  What is more common is that when companies shift IT to the Cloud often IT teams end up being able to provide the real support their end users have been asking for (think company application support and desktop support).

If you want to know if moving to the cloud might be the right move for your mid-sized business, request a Cloud Impact Assessment today.

Source:  Cloud Magazine


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