Until the dot-com bubble peaked and burst in the early 2000s, businesses were traditionally willing to spend part of their capital in updating their software and hardware as needed. But after the dot-com meltdown, companies found themselves with less cash to spend, implemented hiring freezes and began hunting for ways to continue their operations with less staff and fewer expenditures.
For these businesses, cloud computing offered multiple solutions. It enabled businesses to reduce their capital expenditures, modernize their legacy IT and could be implemented faster and easier.
In addition, cloud computing decreased operational complexity, made the software development lifecycle run more smoothly and enabled new features or capabilities to be added to an existing system. Cloud computing soared in popularity as the demand for it increased in both business and government markets.
Amazon, Salesforce and Google were particularly important in the adoption of cloud computing. These companies demonstrated the usefulness of cloud computing and other organizations began to use it, especially with the development of improved high-speed bandwidth and improved software interoperability.
In the recent article “13 Cloud Computing Stats for CIOs,” StateTech’s online content manager, Jimmy Daly, observes that cloud computing has and will continue to help organizations save significantly in expenses. His article notes that:
- The global cloud services market may rise to $131 billion by the end of 2013 and to $180 billion by 2015.
- 84% of CIOs cut application costs by moving them to the cloud.
- 60% of server workloads will be virtualized by 2013.
Although Daly’s article described the effects of cloud computing on government organizations, businesses will feel the same effects as a greater number of them adopt cloud computing. Some enterprises are still concerned about cybersecurity and 24/7 availability, but these worries are gradually fading as cloud computing continues to develop.
Proprietary data stored in the cloud, for example, can be highly protected with proper security measures as well as high-quality user authentication. And by storing data in remote servers, it remains accessible from other locations in the event of natural disasters, so that enterprises can continue operating and serving their customers without loss of reputation.
Infoworld’s David Linthicum points out that more companies now trust cloud computing in his June 2013 article, “Cloud adoption’s tipping point has arrived”. He notes that cloud adoption has helped companies to grow and more enterprises from banks to application developers are willing to try it. As cloud computing expands in popularity, its capabilities should continue to accelerate.