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Reasons behind the Boost of Cloud Technology

Jason Li
Sr. Software Development Engineer
Skilled Angular and .NET developer, team leader for a healthcare insurance company.
October 24, 2019

Almost everywhere, in every business, we see the shift of technological infrastructure from legacy systems to cloud technologies. The most appealing reason for the cloud boom is nothing but its simplicity, low-cost and scalability. New market studies show that cloud computing is the future of every enterprise. And the real surprise is that the cloud's global market is going to hit $200 billion within a couple of years. Nowadays, we hear more about cloud computing and let us analyze different factors that contributed to the rise of this technology.

The Recession

The economic slowdown called for the development of new technologies and applications that can help businesses save your money, time and resources. As an innovative technology that is highly scalable, flexible and cuts down the operational cost, cloud computing was the need of the hour. Switching to both internal as well as external cloud environments assists companies to transform their existing legacy data centers to high–performing agile infrastructure with less cost and offers a scalable computing environment that reduces the burden of limited resources, hardware complexities, and system management respectively. The main strength of cloud computing is it's reduced IT operational spend, which is highly beneficial during a recession situation.


The outsourcing sector was in search of an innovative technology that can work smarter, faster and cheaper than the traditional systems lack. The acceptance of outsourcing strategy gave rise to the boom of cloud computing, especially SaaS (software-as-a-service) and IaaS (infrastructure-as-a-service). HP and IBM Global Services offer x-as-a-service (Anything as a service), Infosys serves cloud-based Hire-to-Retire for Human Resources Management and a comprehensive solution, Source-to-Pay for procurement. Tech-savvy outsourcers reap maximum benefit from the incredible opportunities created by these cloud embedded services by incorporating them into their outsourcing offerings and making themselves reliable cloud service providers.

Need For High Speed Networks

The Internet has dramatically changed the way people live in this world. Transforming it as a tech world, internet, and associated technologies is blurring the fine line between the online and offline world. We spend most of our time on mobile, making our strong presence on many social media platforms, watching YouTube, making online purchases, etc. The mobile penetration has broken all the previous records owing to the technological advancements happening in the mobile industry and the introduction of 4G and 5G networks, the next generation high speed networks.

Cloud computing technologies work efficiently with high-speed internet connections. The need for high speed networks and digital technology advancements go hand in hand. It is obvious; to share computing resources residing on the cloud requires super speed internet connections. So, the integration of super speed networks into your organization enables you to deliver cloud services on real-time basis, which contributed to the growth of the cloud.


Generation of BIG DATA

The introduction of high speed internet and smart applications made the life of people easy. They start relying on software applications and diverse technologies to make purchases, selling and everything that a brick and mortar company can offer. The penetration of apps, the internet, and smart phones made enormous data accumulated. To deal with this huge data, different data analyzing and management techniques have evolved. Keep in mind that only through cloud computing platforms businesses can generate big data. A perfect blend of big data and cloud computing can increase the value of your business without squeezing your tech budgets.

Equipping your business with both cloud computing and big data technologies helps you earn more benefits in terms of money and time. Big data analysis, the process of analyzing data to uncover the data patterns useful for the growth of organizations, has gained more power with the expansion of cloud technology. Through the cloud, businesses can integrate data from diverse platforms.

Big data analysis creates heavy workloads. The legacy systems can't meet the requirements of high-complex data analysis processes. Only through cloud computing platforms businesses can analyze the hidden data patterns, depict correlations, predict future market trends and customer behavior patterns and scale the performance based on the real time demands.

Necessity for IT Security and Privacy

We are moving to a more opened world where we are left exposed and vulnerable to cyber attacks. In today's digital world, cyber security becomes a necessity, not an optional one. Cyber attacks can put an organization's valuable assets and data under risk. And legacy systems prove less efficient in dealing with such security issues. As one of the innovative technologies which is in use and is undergoing transformation, cloud computing technology offers remarkable security advantages for the users. Curbing data breaches is an important functionality of cloud computing. From small to medium-scale businesses and corporate, cloud computing offers high security standards through Multi-factor authentication, Physical security, Patch management, etc., that creates less space for errors and no room for cyber attacks.

To fight back Distributed denial of service attacks (DDoS), service providers offer cloud computing security solutions that monitor and take measures to nullify DDoS and minimize the risks associated with DDoS. Moreover, to safeguard prized assets like financial and personal data, cloud computing security solutions define high security protocols and regulatory compliance measures. With advanced security features, cutting edge cloud computing security solutions help businesses to attain tremendous growth in the global market place. Higher demand for secured infrastructures that prevent data loss and safeguard the assets of businesses acted as the catalyst for the accelerated growth of cloud computing technology.

Increased Storage Capacity and Automation

As the businesses become more complex, faster and scalable solutions are needed to meet their increasing storage and automation requirements. The technologies that existed at that time failed to solve the technical challenges of storing and processing huge amounts of data related to businesses. Here comes the advantage of using cloud services that can store and process hundreds of millions of data beneficial for the smooth functioning of your business. Storage resources provided by cloud computing services make it easy for technical experts to manage data at affordable rates. Cloud storage takes three forms. They are private cloud, public cloud or hybrid cloud. For high storage and fewer security requirements, businesses can adhere to public clouds. From high scalability to improved security and flexibility data storage, enterprises can use private clouds. To exercise proper control over data with great ease and flexibility, businesses can move to hybrid clouds. The main advantage of hybrid clouds is that they offer excellent data storage functionalities at affordable rates.


Virtualization technology plays a huge role in shifting resources to the cloud. As server virtualization becomes so common among enterprises, entrepreneurs gained more confidence in moving everything to the cloud without hesitation. By implementing solid isolation between the systems of different clients, shifting virtual machines to various physical servers became easier. The legal constraint for choosing a different cloud computing service provider, vendor lock-in is intelligently avoided in this scenario. The drastic growth of cloud computing and its recent advancements is transforming the mind-set of different entrepreneurs. It can be evident from their reforms that support resource hosting on clouds instead of in-house hosting.

Emergence of IoT

The emergence of IoT demanded a scalable computing platform that can offer excellent services to share computing resources and higher utilization of resources with enhanced security and protection features known as Cloud Computing Technology.

To put it simply — IoT (the internet of things) is a flexible and scalable system of interconnected devices, people or animals that have specific UIDs or Unique Identifiers. As the physical devices stay connected using wireless technologies and give the power to control each other without your physical presence, IoT can be referred to as a futuristic technology.

Both IoT and Cloud computing technologies are used to enhance the performance and efficiency of your business. IoT is meant to generate huge data and cloud computing serves as the most cost-effective and intelligent pathway for these massive data to reach their destination. When an enterprise clubs IoT and cloud computing together, it can increase your bottom line. Moreover, cloud computing boosts better communication among the devices connected to the IoT system.

As a promising technology, IoT makes everything smarter and intelligent. For example, if you connect devices inside your homes such as lights, air condition, security system, and other electronic equipment, then you can control its functionality and operate it remotely outside the premises. Mechanical devices such as cars and other vehicles can be connected to share the information about each device like the route, destination and notifying other users about safety, etc.