Why are companies shifting towards cloud computing?

Why are companies shifting towards cloud computing?

Aug 16, 2021

Why is cloud computing so hyped up? And why exactly is everyone moving towards the cloud leaving their traditional computing system?  Well, cloud computing is certainly the “need of the future”. It is one of the most significant trends that escalated itself in the past few years. 

According to a report published in Business insider, business software running on traditional servers is set to shrink to 32% of all enterprise applications by 2022, it’s around 50% of what it was in 2019. 

According to some of the field experts, moving to the cloud can create a lot of benefits for companies, including a decrease in IT costs, increased flexibility, increased efficiency, improved security, boosted performance, and the potential for innovation and developing new capabilities.

With the availability of many software development companies out there, creating your own customized cloud systems is easier and efficient nowadays. 

Why are companies moving towards the cloud?

One of the most important and noticeable benefits that brought attention to the cloud was ease of access for end users and scalability, meaning the ability to increase or decrease resources to satisfy evolving demands.

Companies with cloud computing as their regular practices can find benefits in innovation like artificial intelligence and machine learning use cases, as well as “operational efficiency and cost savings.”

According to some case studies, 85% of enterprises will adopt a Cloud-computing principle by 2025, which means that they’ll be focusing on how to free up IT expenses and deliver the most business value using the cloud-based working environment.

The perception of cloud computing has endorsed a gradual shift in perception over the last few years. While most of the IT managers were not so sure about using a cloud solution a few years back, they are now, without any doubt, up and running on the new cloud-based systems managing their entire institution. Usually, Enterprise Resource Planning (ERP) solutions were considered as “software crown jewels.” As these ERP solutions tend to be a bit expensive, bulky and large, they stood at the epicenter of an organization’s core business. Not surprisingly then, the IT individuals considered the cloud as an absurd escapade from these robust software who are quite reliable and ensure smooth running of the businesses.

However, in recent times, the focus has shifted towards cloud-based ERP solutions, given their holistic approach and low maintenance working that takes into its purview almost everything a business requires and the fact that they are easy to keep pace with the ever-changing customer needs which traditional ERP solutions lack to quite some extent.

Did the pandemic accelerate cloud adoption?

Yes, hugely! According to a Gartner survey published in November, The COVID-19 pandemic has also increased cloud adoption since the internet seems to be the only reliable option. Around 70% of institutions using cloud services showed intent to increase their cloud spending in the wake of the pandemic.

Cloud services also helped companies keep their businesses viable and online and connected to their customers and partners and saving their connections in the market space.

Many experts note that the trajectory of the pandemic, and the abiding effects thereafter, have informed their predictions for cloud adoption in the year 2021.

After saying that, some companies started their journey on cloud computing and made themselves market leaders due to this very reason.

  • Pinterest
  • Apple (Siri)
  • eBay
  • Xerox
  • Netflix

While Xerox decided to develop a cloud printing solution in 2012, it revolutionized printing by allowing users to print from anywhere. Another good and recent example you can see is Capital One. Capital One decided to move to a totally public cloud over a private cloud.


Cloud computing has been a part of this virtual ecosystem since 9 August 2006. But due to high cost and security concerns in the initial stages, the journey started a bit slow. But here we are, in the year 2021, where digitalization took over the industry, and cloud computing is the shining armor in the game.

Factors that makes cloud computing “The need of the Future” are: 

  • Cost Savings
  • Security
  • Flexibility
  • Mobility
  • Insight
  • Increased Collaboration
  • Quality Control
  • Disaster Recovery
  • Loss Prevention
  • Automatic Software Updates
  • Competitive Edge
  • Sustainability & Scalability

As cloud applications and capabilities become attainable for businesses and service based institutions of all sizes, IT professionals are using these solutions to make day-to-day work faster, more agile and more secure across their organizations. What’s more, they’re putting their organizations in position to realize real benefits: Anywhere, anytime access to the applications and information employees need, with lower total costs and less infrastructure to purchase and maintain. This cloud computing revolution resulting in IT professionals can now shift even more of their time, talent and budgets toward delivering bigger and better results. 

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