Cloud Computing: A Key Component Enabling Digital Transformation

Market Drivers, Benefits, Risks, And Challenges Of Cloud Computing



Steven Lerner
01/10/2019

Cloud computing is one of the important aspects of digital transformation in Enterprise Mobility Exchange’s August 2018 report. In a recent survey, Enterprise Mobility Exchange asked IT executives which areas of the digital transformation they were interested in the most. The lion’s share of the votes went to artificial intelligence (33%) and Internet of Things (26%). Only 13% of respondents identified cloud as their topic of interest.

As an enterprise embarks on a digital transformation, cloud computing is often one of the first key technology components. Cloud computing involves the use of a network of remote servers hosted on the internet to store, manage, and process data. This system replaces enterprise servers and computers traditionally found on premises.

See Related: Is Cloud-Only The Future Of Digital Transformation?

Jeff Orr, freelance writer and emerging technology consultant, told Enterprise Mobility Exchange that cloud computing has democratized data globally by making important information more accessible to team members who need it. An example provided by Orr is a sales team transitioning from a proprietary application for customer relationship management (CRM) to a cloud-based service, which opens up the data to more people within an enterprise.

Market Drivers

There’s no denying the connection between data and cloud computing. An enterprise’s decision about the accessibility of data is often the primary driver to cloud computing. This technology allows organizations to store large amounts of data, and to give access of that data to all interested parties with permission. The complication that worries some enterprises is that without a full-time staff of dedicated data scientists, a cloud migration could be difficult. However, there are many tools to analyze data through cloud services, which is beneficial to enterprises.

See Related: Sign Up For The FREE Digital Transformation Online Summit For October 2-3

Benefits

Depending on the enterprise, there could be numerous benefits to embracing cloud computing as part of a digital transformation. Businesses of different sizes and in many different industries could immediately benefit from a cloud migration. One of the potential benefits is with cost savings. Unlike in-house storage, cloud services offer unlimited processing cycles and storage space. Thanks in part to the common APIs and user interfaces, cloud services also provides a way for remote and mobile workers to stay connect and to get data access. Cloud computing can be especially beneficial for enterprises with a large global workforce.

Risks And Challenges

Despite the benefits, there are some risks and challenges that enterprises should know before using cloud computing. Public cloud services can sometimes pose potential security and privacy concerns. This is a risk that could be especially detrimental to those enterprises with a fair amount of regulations and compliances.

See Related: Public Cloud Is Making A Splash In The Enterprise

The idea of losing control of data due to a public cloud can also be intimidating for certain enterprises. Some businesses, including supply chains and seaports, have a need to own and operate the cloud platform with APIs to prevent hackers from stealing valuable data. Enterprises should be educated and aware of all of the potential risks of a cloud migration before actually implementing one. To protect the data in the cloud, enterprises should also implement privacy and security policies first. With these policies in place, an organization could have a successful digital transformation with cloud computing.

Want To Learn More About Digital Transformation?

Before embarking on a digital transformation, an enterprise should identify the needs and objectives. Read about cloud computing and all of the other key technology components in Enterprise Mobility Exchange’s exclusive report on digital transformation.

This article was originally published on Enterprise Mobility Exchange.

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