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The 5 Benefits & Role of Cloud Computing in Digital Transformation

The 5 Benefits & Role of Cloud Computing in Digital Transformation

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Technologies like artificial intelligence, machine learning, big data, IoT etc. have given rise to innovative ways of doing business thus leaving the old business practices ineffective. Enterprises who have been functioning in their respective domains for years are now facing an urgent need to pivot their traditional business process to suit the needs of the modern consumer. Digital transformation is the way these organizations make this change. While Cloud is the support they rely on to enable this transformation.

74% of Tech Chief Financial Officers (CFOs) believe that cloud computing will have the maximum measurable impact on their business in 2017. (Source - Forbes)

Why is Cloud Computing Important for Digital Transformation?

the benefits and role of cloud computing in digital transformation

Cloud computing is the use of remote servers over a network. These servers can provide functionality like storage, processing, security, analytics etcetera. For digital disruption to take place a company needs to revolutionize its current business process and leverage technologies like the internet of things (IoT), chatbots, augmented reality, machine learning, big data analytics etc. All these technologies require heavy computing power, storage, and IT infrastructure. Cloud computing provides these services based on a company’s individual requirements.


Cloud computing is expected to grow from $67B in 2015 to $162B in 2020 securing a compound annual growth rate (CAGR) of 19%. (Source)

Read More: 9 Elements that Collectively Complete a Digital Transformation


5 Ways Cloud Computing is Helping in Digital Transformation:

Cloud computing has been the enabler of digital transformation in following ways:

1. Flexibility:

To effectively execute a digital transformation strategy a company will need to pivot its business process multiple times. Cloud computing saves an organization from the hassle of investing in varying IT resources by providing required computing resources, infrastructure, and platforms on the go. This allows a company to be agile and flexible.

2. Cost-effective:

Along with the flexibility to adjust requirements, the cloud offers a scalable service model where an enterprise only pays for the resources used. Hence not only it saves the capital expenditure of buying and managing IT infrastructure but also helps companies to effectively scale their resources based on requirements.

3. Security:

If your database is stored in-house then you constantly face the risk of losing critical information due to data breaches, unexpected system shutdown, disasters, brute force attacks etc. In case of cloud hosting, you can easily create multiple backups of your data. This is especially beneficial when dealing with big data as the chances of system failures significantly increase in case of the big data analysis.

4. Rapid Prototyping:

For digital transformation to work, an enterprise needs to continuously innovate, test, implement and repeat. Cloud can provide companies with a platform where they can easily build, test and deploy applications without the need to setup complex infrastructure. Hence throughout the transformation phase, a company can experiment with multiple applications on different platforms.

5. Better Collaboration:

Digital transformation requires a company to adapt to a culture of innovation and creativity and leave the old hierarchical chain of commands. Cloud computing allows the files to be accessed from any place and at any time. It is also possible to control the level of authority of user thus ensuring optimal delegation. Overall it helps create an atmosphere of collaboration and teamwork in the company.

All these benefits suggest clearly that if you are planning for a digital transformation in your enterprise then the cloud is a logical and optimal solution. If you are planning to move to the cloud or are looking for an IT solution expert then we can be a partner of choice. With a vivid experience of working on different technologies like cloud, mobile, web, etc. for over 10 years, we have built deep expertise in these domains. Feel free to get in touch for a project discussion, consultation or POC.

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