Infrastructure in the cloud: what are the benefits for business

According to IDC analysts, the global market for public cloud services last year reached $ 233.4 billion, and according to Gartner even more ─ $ 242.7 billion in 2019, the market grew by 26%. And this upward trend is observed from year to year.

The era of cloud services was started by Salesforce, which in 1999 offered its customers to use their CRM system through a subscription site.

The idea was picked up by Amazon, and in 2002 launched the AWS Platform, which actually became the first cloud storage. With the advent of platforms in 2009 from Google and Microsoft formed the main industry leaders.

Today, 63% of global revenue in the field of cloud services is accounted for by 4 technology giants ─ Amazon, Google, Microsoft, Alibaba.

IaaS-leadership is owned by Amazon. In the second quarter of this year, the company earned $ 10.8 billion, up 29% from the same period last year. In total, in 2019, the company's revenue from AWS amounted to more than $ 40 billion.

Unlike Amazon, Microsoft reported only a percentage increase in revenue - an increase of 47%. Google with G-Suite products reported revenue of $ 3 billion, an increase of 43% over the same period last year.

According to Gartner, IaaS will account for the largest share of cost growth in the cloud cost structure. Their analysts say that the market for public cloud solutions in 2020 will grow to $ 266.4 billion.

What is the popularity of cloud solutions?

Despite the widespread use of cloud technology, which will not surprise almost anyone, some still ask themselves: "What is a cloud better than a server in your own office?"

The main advantages of the cloud are: 

Accessibility. Cloud solutions are access to the most up-to-date data, work on the project in real time and fast exchange of information, regardless of the user's location. There are also many more applications, information, and resources available to employees than the "hardware" of a corporate system administrator can provide.

Data security and safety. A cloud provider can provide data security on a professional level. And the backup system of virtual environments will allow in case of failure to carry out recovery faster. 

Flexibility and scalability. Enterprise mail, a variety of CRM systems, and other cloud-based applications are easier to use without effortlessly scaling the number of users. In addition, the benefits of the cloud are obvious at peak times and with the development of business capacity. 

Rational approach to payment.

The customer pays only for the power he consumes. You do not need to keep a fleet of equipment, organize a series of tenders for the purchase of powerful software and computers. This reduces the cost of equipment, electricity, software licenses.

Stability of work and convenience in administration.

Even in the event of an emergency, such as a fire, the integrity of the data will be compromised. Cloud infrastructure not only increases the level of information security, but also facilitates its administration by the company's specialists.

The choice of cloud services eliminates the solution of a number of side problems.

The speed of innovation in public cloud services is much ahead of local work in the company. Therefore, for many companies, the choice of cloud is becoming increasingly obvious.

Impact of the pandemic

In contrast to many areas that have faced the negative impact of the pandemic, there are positive trends in cloud technology. Yes, not without some problems for providers, but with revenue growth.

The IDC report for April this year forecasts a reduction in the cost of "hardware": PCs, tablets, network equipment. But at the same time there is a global demand for cloud services, including IaaS. IDC analysts see the reason for this in more precise cost control thanks to the "Pay as you go" model.

The need to organize remote work pushed companies to digitalize. Even companies that are accustomed to working by traditional methods have had to look for reliable solutions that can be implemented quickly. The issue of data security has become even more relevant. Under such conditions, cloud services have become an effective solution to business problems. By the end of the year, investment in IaaS in European organizations is expected to increase by 21.4%, according to the same April forecast by IDC.