5 Reasons More Small Businesses Are Moving To The Cloud (2024)

In case you’ve missed it, the adoption of cloud-based technology is rapidly growing, especiallyamong small businesses. In fact, it’s probably safe to assume your business is using cloud-based tools in some capacity.

But what exactly is the “Cloud?” Without getting into the nitty gritty details of cloud computing, let’s just say that the cloud generally refers to a collection of servers located at a central location that store data or serve various technologies, usually to a large number of people. One example of a popular cloud-based service is Dropbox, which offers document storage and sharing via the cloud. Small businesses may also use cloud-based solutions for their accounting software, email service, and data backup services.

So businesses – particularly small businesses – are moving to the cloud in droves, but why? What’s the big draw to cloud-based technology?Cloud-based services on the market, utilize cloud technology to save individuals and businesses the time and hassle of installing the same technology on their own computers or servers.

Here are 5 other reasons small businesses are moving to the Cloud.

Cost

The first and perhaps most obvious benefit of moving to the cloud is the cost savings that go along with it. When business tools and technology are being hosted in the cloud, it eliminates the expense associated with physically storing and maintaining the resources that power that technology.

First, there’s the cost of the hardware itself. Then there’s the ongoing cost of keeping an IT team either employed or contracted in order to make sure you’re covered should you need any help with your hardware. Whether you’re thinking of using the cloud for your businessphone system, data storage, backup, disaster recovery, or practically anything else, chances are there are at least some cost savings to be had by utilizing the cloud.

Scalability

Another big advantage cloud has over on-site technology is the ability to scale quickly and easily. For example, if you were to try and store all of your business data on servers located at your place of business, you would need to buy new servers every time you wanted to expand your storage capacities. With cloud storage, however, you can simply purchase more resources in the cloud as you need them. You can also scale back when necessary, too, meaning less money wasted on resources you don’t need.

Access

Because the cloud is driven by the Internet, you can typically access cloud-based technology from any device with an Internet connection. That means if you’re using cloud storage like Dropbox, Google Drive, or OneDrive, you can save a document on your desktop or laptop from the office, then access the same document from your mobile device when you’re out and about.

The same is true with other services like cloud phone systems. With a cloud phone system, you can use a softphone app to make and receive calls on your mobile device as if you’re using your office phone. You’ll appear to have your same office number, and you’ll have access to much the same features as you would with the phone in your office.

Collaboration

In addition to having access to data and business tools at all times with cloud-based technology, the cloud also allows multiple people to access the same data and tools and collaborate in real-time. For example, when you save a document to the cloud, every person with access to it can see it as it is in real time. In other words, the cloud eliminates the need to go back and forth making sure everyone has the same version of a document.

Again, the same is also true of a cloud phone system. Many cloud phone systems include status indicators, chat, and more that allow team members within a business or organization to better collaborate in real-time.

Support

Cloud services also offer the unique benefit of having added support on standby. Because the technology itself doesn’t live at your place of business, the maintenance and support don’t fall to your IT staff. Instead, if there’s an issue with a cloud-based tool, all you usually have to do is report it to the service provider’s technical support and they’ll take it from there.

That’s a huge advantage to small businesses who don’t like the idea of purchasing, maintaining, and fixing servers for something like a phone system, file storage, web hosting, or anything else for that matter.

Next Step

To learn more about cloud phone systems, how they can benefit small businesses, and whether or not the cloud is a good fit for your business, take a look at our hosted business phone systems page and take advantage of our free guides and resources!

5 Reasons More Small Businesses Are Moving To The Cloud (2024)

FAQs

Why are businesses moving to cloud 5 points? ›

Cost Savings

Moving to cloud technology enables you to save both space and costs, previous you have to pay for on-site servers (sometimes even off-site data centers). With the cloud, you pay cloud providers to handle the data centers and other resources rather than hosting the servers in-house on your own.

What are the 5 most essential things that must be followed before going for cloud computing platform? ›

Following are the essential things that must be followed before going for the cloud computing platform:
  • Uptime.
  • Loss of data.
  • Data storage.
  • Compliance.
  • Business continuity.
  • Data integrity in cloud computing.
Jun 7, 2023

What are the major reasons to migrate to cloud? ›

Cloud migration benefits
  • Optimized costs. ...
  • Flexibility and scalability. ...
  • Enhanced security. ...
  • Compliance. ...
  • Backup, recovery, and failover. ...
  • Simplified management and monitoring.

What are the four major motivations for moving to cloud? ›

Reducing IT costs. Increasing business agility. Improving Security. Eliminating end-of-life concerns.

Why are so many companies moving to the cloud? ›

Lowered capital expenditures. With cloud computing, the cloud provider supplies all the hardware (servers, storage devices, firewalls, switches, routers) that you would traditionally have to purchase and manage yourself. Moving to the cloud helps you eliminate these regular capital costs. 2.

What is cloud computing 5 points? ›

Simply put, cloud computing is the delivery of computing services—including servers, storage, databases, networking, software, analytics, and intelligence—over the Internet (“the cloud”) to offer faster innovation, flexible resources, and economies of scale.

What are the 5 essentials of cloud computing? ›

The National Institute of Standards Technology (NIST) lists five essential characteristics of cloud computing: on-demand self-service, broad network access, resource pooling, rapid elasticity, and measured service.

What are the 5 considerations for cloud computing? ›

Security and compliance, scalability and flexibility, support and service level agreements, total cost of ownership, and vendor lock-in are the five key considerations that every business must keep in mind when choosing the ideal cloud service provider.

What are the 5 considerations when choosing a cloud service model? ›

To help you in this decision-making process, here are some key considerations to select a cloud service provider:
  • 1) Certifications and compliance standards. ...
  • 2) Technology roadmap and service offerings. ...
  • 3) Flexibility. ...
  • 4) Data security, governance, and business policies. ...
  • 5) Service dependencies and partnerships.
Jul 31, 2023

What are the advantages of moving to cloud? ›

Cloud computing gives your business more flexibility. You can quickly scale resources and storage up to meet business demands without having to invest in physical infrastructure. Companies don't need to pay for or build the infrastructure needed to support their highest load levels.

What are the 7 types of cloud migration? ›

The 7 cloud migration strategies are: rehost, relocate, replatform, refactor, repurchase, retire, and retain.

What are the benefits of cloud migration for businesses? ›

Cloud migration benefits

There are significant savings in resource, maintenance, and real estate costs, in addition to the ability to optimize workloads so that they cost less to run.

What are the 5 cloud migration strategies? ›

What are the types of cloud migration strategies?
  • Rehosting ("lift and shift") As the name implies, this involves lifting your stack and shifting it from on-premises hosting to the cloud. ...
  • Replatforming. ...
  • Repurchasing. ...
  • Refactoring. ...
  • Retiring. ...
  • Retaining.

What is the top reason for organizations moving into the cloud? ›

Because the cloud doesn't require equipment to be installed locally, you can spin up additional resources rapidly without waiting months for new servers to be delivered and installed. Servers are instantly available when you need them. Migrating to the cloud makes sense for many companies.

What is the reason for customers switching to cloud computing? ›

Reduces Cost:

The business will save and reduce costs if it no longer needs to employ a staff of technical support personnel to address server issues. Cloud computing also has the ability to scale. The enterprise's deployed servers need pricey hardware updates, which come with a high up-front cost.

Why are retailers moving to the cloud? ›

The Cloud Allows Retailers to Scale

Now, retailers can do the same with applications. The cloud makes it simple and cost-effective to scale up during periods of growth or scale down during seasonal downtimes. This ensures that retailers meet customer demand without overinvesting in underutilized infrastructure.

What is a benefit for a business to move to cloud computing? ›

Cloud computing gives your business more flexibility. You can quickly scale resources and storage up to meet business demands without having to invest in physical infrastructure. Companies don't need to pay for or build the infrastructure needed to support their highest load levels.

Why are businesses embracing journey to the cloud? ›

Embracing the future of cloud computing allows you to embrace the future of technology as a whole. With the cloud, your small business can access the latest technologies and tools, like artificial intelligence, machine learning, big data analytics and the Internet of Things.

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