Cloud computing can be defined as the process in which the data is stored, managed and processed in the remote servers hosted on the internet instead of storing it on a local server or a computer. Cloud computing can help in improving team collaboration, reduce costs, secure data and manage growth within the organization. Because of these benefits, more and more companies have started to transfer their data to the ‘cloud’ as it has proved to be more beneficial.
It has been predicted by 55% of the enterprises that in 3 years’ time new business model will come into existence because of cloud computing. According to a recent study of Oxford Economics & SAP study of cloud computing adoption, it has been predicted that over the next 3 years 69% of the enterprises aim to transfer their core business functions to the cloud servers and that is why some of these enterprises will invest moderately while the others invest heavily in the cloud computing business. In 3 years’ time, the percentage of enterprises that uses cloud computing to launch new business models would increase from 44% to 55%. It is believed that the effect of cloud computing on supply chain will also be significant as it has been predicted in the study that organizations that are using cloud computing to streamline their supply chains will increase from 32% to 56%.
According to the study, the 3 areas where the impact of cloud computing is going to be high within an enterprise are top-line Growth, collaboration amongst employees and supply chain. The top-line revenue growth is expected to grow by 15% (from 43% to 58%) in the next 3 years, while collaboration amongst employees is expected to grow by 20% (from 38% to 58%) and supply chain is expected to grow by 24% (from 32% to 56%). The 3 key areas by which cloud computing is transforming enterprises are firstly that in 3 years, due to cloud computing, the development of new products and services will increase to 61%. Similarly, in 3 years’ time 51% of the enterprises will start developing new lines of business and 40% of the enterprises will start entering new markets. 67% of the enterprises expect that the role HR will be completely changed in the next 3 years because of cloud computing while 74% of the enterprises agree to the fact that R&D is mostly cloud-based.
As the scope of cloud computing grows larger, there are different challenges that have come forth. Even though the security concerns that enterprises had with cloud computing have decreased significantly, there are still numerous concerns that remains unaddressed, such as the concern about viruses and identity theft. The study confirms that the percentage of enterprises that are concerned with virus attacks have increased to 39% in 2014 from a paltry 20% in 2012. Similarly, 48% of the enterprises in 2014 were concerned with identity theft as compared to 32% in 2012.
The significance of cloud computing can be determined from the fact that 31% of the enterprises think that cloud computing has had a transformative impact on their business while 48% agrees that cloud computing has had a moderate impact on their business performance. Many senior executives of different enterprises are of the vision that potential to improve innovation, R&D and time to market will significantly improve with the usage of cloud computing.