In order to better simplify information processes, businesses must implement solutions that can speed the flow of data across the supply chain. Companies that can (1) reduce non-value added tasks from their interactions with customers and suppliers, and (2) accelerate communication for critical functions, are better positioned for long-term success. Leading businesses are discovering that the cloud is the best method to increase digital communication and minimize costs.
According to an article in Forbes, cloud computing is projected to increase from $67 billion in 2015 to $162 billion in 2020. Gartner predicts the worldwide public cloud services market will grow 18 percent in 2017 to just under $250 billion. Three out of four tech-related Chief Financial Officers (CFOs) believe that cloud computing will have the most significant impact on their business in 2017.
Four Benefits of Cloud-based Data Integration Tools
- Cost Effectiveness
Employing cloud resources eliminates the need for businesses to invest in substantial hardware and software capital expenditures. Predicting IT capacity needs in a volatile business environment is always problematic. With a cloud-based solution, technology leaders can purchase resources only when they need them. Turning fixed CapEx costs into variable subscription fees can dramatically improve business profitability. Additional cost benefits come in the form of reduced expenses for IT maintenance, customization, space, and energy.
- Flexibility and Scalability
Every business faces activity peaks and valleys. IT workloads fluctuate to match, which creates problems for technology managers responsible for processing and capacity planning. Building and staffing IT infrastructure to handle peaks is expensive and wasteful since there will be times through the business cycle when resources will sit unused.
With a cloud solution, companies no longer have to commit to permanent servers, systems, and storage capacity. As business activity ebbs and flows, companies can scale applications, server space, network capacity, and storage as needed. An on-demand model helps organizations avoid being burdened with outdated legacy systems that can no longer deliver the required performance. With a cloud solution, software and hardware always remain current.
This scalability and flexibility extends to end user demands as well. There are no restrictions on number of users, file sizes, storage locations, or access devices in a cloud platform. Collaboration is enhanced since users can easily access the system remotely at any time from any location.
- Resource Optimization
Organizations that build their own on-premise IT infrastructure must ramp up staff to constantly maintain hardware and ensure software is up to date. A cloud solution frees up these resources to focus on servicing the needs of the business. IT staff is no longer tied up with keeping the system running, upgrading applications, and troubleshooting system issues. They can instead concentrate on finding ways to deliver actionable information to the business to drive revenue and profit growth. Freeing up staff from the demand of on-premise systems unleashes them to focus on improving the business.
- Risk Mitigation
Companies with an extensive on site IT infrastructure constantly face the risk of downtime. Natural disasters, power outages or equipment failures can have serious consequences. This requires having a detailed back up/disaster recovery plan that may include an offsite computing component. Guarding against these potential problems can be expensive and may consume a large number of internal resources.
A cloud-based solution eliminates many of these risks. Since hardware and software are located offsite, any impact to a facility will have little to no affect. The IT systems can be accessed from an alternate site with no loss of data or computing power. Cloud providers can be expected to have an extensive backup plan and the latest technology to keep solutions running, since they have many customers who rely on them.
Descartes B2B Collaboration Solution
Descartes is a leading provider of cloud integration and supply chain management solutions. Our platform simplifies integration, automates business processes, and enhances collaboration and visibility among global trading partners. Our solutions allow companies with disparate enterprise systems to conduct business within cloud-based communities. Solutions are deployed using a software-as-a-service (SaaS) model and provide a faster, more predictable ROI than traditional enterprise offerings.
With a cloud-based architecture, businesses can connect seamlessly with their customers and suppliers. It includes a wide variety of collaborative ecommerce applications. Our platform is written to deploy context specific applications that can produce perfect coordination between diverse databases and ecommerce systems, over the internet and that are completely agnostic to software or hardware.