For many businesses, digital technologies have become a vital part of how they run their internal operations and serve customers. However, as businesses grow and customer demands evolve, many businesses find themselves hitting the ceiling of what their computers can do.

This manifests in different ways, such as limited storage, processing power, and accessibility while on the go. The advent of cloud computing has been one of the best responses to these problems.

Put simply, the idea behind cloud computing is for a user to be able to access applications, storage, and other computational resources remotely. Basically, if you have an internet connection, you can create, edit, and store files using applications, drives, and processing units that aren’t in your possession.

So as many businesses embark on a digital transformation journey, cloud computing has eventually gotten on their radar. We will explore the advantages and disadvantages of cloud computing, and also briefly discuss a possible course of action: 

Advantages of Cloud Computing

• Greater scalability 

When your entire computing power is on-site, the server may become overburdened as your customer base increases. You’ll need more servers and other hardware, and you’ll also have to upgrade your software.

This process will be a little bit complex and may not happen at a pace that will ultimately satisfy your customers. With cloud computing, you don’t have to do all this yourself. All you need to do is contact your cloud service provider and ask for a larger package.

Even more importantly, these moves aren’t unidirectional so if customer demand momentarily drops and you need to scale back, you can easily cut down on the resources you’re using and upgrade later. Scalability in cloud computing makes it ideal for businesses that experience frequent fluctuations in customer demand as they pursue growth.

•  Reduction in general IT costs 

The expansion of the IT infrastructure to accommodate increasing demand can become quite expensive. The costs of additional hardware and software purchases, extra space for your hardware, and IT personnel to maintain the systems all will eventually add up.

In the case of cloud computing, these costs are incurred by the cloud service provider, who then charges a smaller overall fee for a wholesome service.

• Improved collaboration 

When serving multiple customers scattered across different regions, a company may need to have branches in numerous regions as well. Even if the company operates from one location, remote working and hybrid working can hinder collaboration.

Cloud computing enables dispersed teams and employees to have a more centralized virtual workspace where they can store, share and contribute changes to documents in real-time. This makes for more efficient collaboration and faster delivery of work products and other services.

•  Business continuity 

Many businesses operate smoothly when every system is well-maintained. But what happens in case of a power outage, flooding, earthquakes and other natural disasters, cyber-attacks, and other catastrophes? These can leave you unable to serve customers, who you could end up losing.

Cloud computing allows you to backup all your data while also enabling you to automatically shift to other servers and resources in case your current systems fail. This means that you experience minimum or zero downtime and can continuously serve customers amidst any calamities.

• Automatic upgrades 

With cloud computing, you won’t always have to keep tabs on the state of the hardware and software you’re using to ensure that they are up-to-date. You can simply negotiate with your provider for a package where all this is done instantly.

By doing so, you can rest assured that you always have the latest version of the technology you’re using and won’t be caught off-guard by a lack of certain capabilities.

• Flexibility in work modes 

Cloud computing allows you to access data and other resources as long as you have a decent internet connection and any relevant permissions. Meaning you don’t always have to be at the office and using the on-site desktop computers to work. You can access files from your home workstation or even make changes on mobile while on-the-go.

Now that we’ve laid out the major benefits of cloud computing, you should know that it comes with a downside too. Let’s take a look at some of the disadvantages of cloud computing:

Disadvantages of Cloud Computing

• Data breaches and leakages 

While many cloud service providers adhere to high security standards, storing sensitive business information in the cloud can be quite risky. There are lots of applications whose related API keys, security certificates, and other credentials can end up in the wrong hands. This can lead to data theft or services being taken hostage.

Furthermore, the distributed way of working makes it a little trickier to ensure that every employee in every corner of the world follows security procedures to the dot. They may log in from unsecured devices and networks, then recklessly share access information. Cloud computing can definitely create more entry points for malicious actors to exploit.

• Downtime 

Just like with personal computers and on-site infrastructure, cloud systems can also get overloaded and slow down. They can also have errors in operation and shut down or restart unexpectedly. These instances can interrupt service availability and leave both staff and customers frustrated.

• Minimal control

Cloud service providers will allow you to manage your applications and other resources. However, some organizations may need to massively alter configurations and other settings to suit their style of work. New large-scale partnerships with complex contracts and data sharing can also come with different operational requirements.

Unfortunately, you may not be able to access a lot of the back-end of your cloud services and make administrative tweaks that favor you. You may still have to go through the provider to get this done, which can slow things down.

When we look at the advantages and disadvantages of cloud computing, the pros far outweigh the cons. Additionally, most of what we consider as the cons of cloud computing can still be faced even when not using cloud computing.

It is worth noting that cloud service providers benefit from monitoring and learning from a larger pool of clients. This enables them to consistently develop the best solutions to the problems that cloud users often face.

Ultimately, whether you choose a cloud-first strategy or some other hybrid, you should always focus on having a contingency plan to minimize service unavailability in case of downtime or security breaches. Digital transformation solutions primarily promote collaboration and efficiency as a way for staff to serve customers better, all of which are well encapsulated in cloud computing if done right.