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Cloud computing has become a hot topic since the introduction of AWS cloud services in the early 2000s. A key takeaway from the Gartner report suggests that around 33% of businesses prioritize technological investment in cloud computing.

Over the years, access to high-speed internet has improved, which is why more companies can shift their data centres to the cloud. The COVID-19 pandemic only accelerated its popularity and proved to be a gamechanger for businesses of various verticals.

The concept of plugging into functional IT infrastructure resources at a profitable rate has helped businesses in more ways than one. Want to know the advantages cloud computing has in store for businesses in 2021? Let’s delve into the article to know more.

Cloud Versus On-premise Software

In the past, companies had only one option, and that was to install on-premise software, which is installed on the company’s servers and firewalls. As digitization started gripping businesses of various verticals, the need to encapsulate large chunks of data became quite a costly affair.

Even though the on-premises provides benefits like control of companies over applications and reliability, it comes with a baggage of high maintenance and upgradation costs and hassles. On-premise data centres also create a burden on your IT team as they have extended responsibilities like maintaining and managing these servers. 

On the other hand, cloud computing uses a third-party server to host all the applications for the company. This reduces IT staff’s responsibility, as they are no longer required to install new software or look for updates. They can use up their time to concentrate on developing impeccable software products for the company.

On-premise software requires a capital investment and also includes maintenance costs. Cloud computing adds to the operational cost where you pay an affordable monthly subscription to use a third party’s cloud infrastructure.

Cloud computing also offers better data backup than on-premises storage. All the data is secure in the third party server, even when the local files get deleted accidentally. With on-premises, you are at a higher risk of losing data, as all of it is stored in an internal server, mostly without an offsite backup. 

Benefits of Moving to the Cloud

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Many companies have moved to cloud computing and have made it a core component of their IT ecosystem. A typical cloud-based infrastructure includes IT requirements like servers, software, network devices, storage devices, etc.

Some of the advantages of shifting data to the cloud that make it a lucrative choice for businesses are:

Improves Data Security

Data breaches are one of the nightmares of any business. Leveraging cloud infrastructure security creates a protective blanket around sensitive data.  

Lowers IT Costs in the Long Term

Businesses can upgrade to a more efficient solution any time, without spending a hefty amount. It is not correct to compare cloud costs to on-premises costs unless the comparison is based on the cost of maintenance, hardware upgrade, network, and software upgrades. In these cases, the cost is lower as the services are often “on-demand”. The ROI for the cloud is not quite visible for at least 3-5 years of implementation, as these take time to eventually show positive ROI for the company.

Saves Time

Cloud computing allows the deployment of crucial business-specific applications quickly compared to the time taken to purchase, install and configure on-premise software. It means companies can start with high-end IT support easily and deliver their services on time. 

Offloads a Part of the IT Team’s Work

Cloud empowers IT teams comprising the developers and data scientists. They can start working directly on their core duties with the required innovative IT support and thus shift their focus from day-to-day activities.

Enhances Agility and Scalability

With cloud computing, businesses have the liberty to upgrade at any time and create an agile IT infrastructure that accommodates the ever-changing consumer demands. It also provides a flexible data storage platform, so businesses need not look for additional hardware or software for large data volume. 

Cloud Computing for a Sustainable Business

With easy access to high-speed internet, and of course, the COVID 19 pandemic, companies accelerated their journey towards attaining their digital goals. Cloud computing helped companies navigate the challenges posed by the pandemic-induced remote working culture. 

A NASSCOM report states that digital transformation deals have seen an 80% increase in cloud spending. Migrating to cloud services has also helped organisations improve overall productivity and achieve higher business resilience. 

Since most cloud applications like SaaS, IaaS, etc., utilise in-house IT resources, the IT team can create exceptional products that lure in more customers for the company. It also enables remote work culture without disrupting the teamwork and ensuring seamless communication between various teams. 


As the world embraces digitisation, businesses shifting their data centres to the cloud comes as no surprise. Companies are in dire need to create an exceptional customer experience to outshine their competitors and lead towards a profitable business.

Undoubtedly, with the ongoing technological advancements, more companies will harness the true potential of cloud services to create a resilient, reliable, and enduring business.

For more related information, visit Unocloud.