Updated: Dec 10, 2021
Cloud computing is an essential component of the SaaS industry that is already multibillion today. As per the reports of Data Science Central, the global SaaS market had a net value of US$23.88 bn in 2014.
The figure is expected to rise at a CAGR of 27.9% beginning from 2015 and reaching US$164.29 bn by the year 2022. Cloud computing is expanding fast and vast.
The growth in the cloud services industry is attributed to its benefits over traditional storage media. Before the cloud computing era, applications and programs were downloaded and retrieved from a physical computer or server.
Cloud computing helps you store and retrieve the same kind of applications and programs directly from the internet. It is known for its efficiency, cost-effectiveness, and flexibility.
What is Cloud-based Software?
Cloud-based software (also known as cloud computing) refers to applications, on-demand services, storage, computer networks, or other accessed resources using an internet connection through another provider’s shared cloud computing framework.
The simplest way to understand cloud computing is by comparing it to electricity. Your home and business have it, but it doesn’t require a power plant on your property to use it. You connect to the one that is providing electricity to your area.
Why Should Your Small Medium Enterprise Move to a Cloud Based System?
A greater number of SMEs in London are adopting cloud based solutions. Cloud adoption among UK firms has reached up to 88% due to its capacity to minimize IT costs along with improving flexibility, enhancing security, and streamlining operations. It is expected that by 2020, over 83% of business workloads will run in the cloud.
Today, SMEs rely on IT infrastructure to improve the running of the business. But, IT departments are expensive, hardware cumbersome, and software soon becomes outdated and requires upgrading. Traditional IT systems are not providing optimum performance.
Plus, 49% of IT managers have a specific role in driving the business forward, but the majority of IT departments are seen as a bucket hole. Investing in office-based technology is a paradox that SMEs cannot afford to risk.
On the other hand, cloud computing provides solutions that SMEs cannot afford to ignore.