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What is Cloud Scalability and 5 Reasons Why Businesses Need It for Economic Growth

Before the rise of the cloud, companies had to invest a lot of their hard-earned cash into technology and data storage. This was a big challenge for businesses big and small, and in response to this, cloud-based solutions emerged, offering perks like low cost and simple expansion.

global-cloud-computing-market-chart 

Image Sourced from Finance Yahoo

Smaller businesses in their growth phase found cloud storage particularly beneficial. As data stores expanded, cloud technology adapted, becoming a flexible solution for them. Fast forward to today, the cloud has transformed from its modest beginnings to a massive market size of $495.3 billion in 2022, projected to reach $2,495.2 billion by 2032.

If you've come to this blog post, you're likely curious about cloud scalability. What does it really mean? How can it benefit my business? What does it offer?

Let's explore these questions together.

What is Cloud Scalability?

cloud-scalability 

Cloud scalability is all about having the flexibility to adjust your IT resources based on changing demands. If your cloud system is scalable, it should have the ability to handle varying workloads, whether that means dealing with higher loads during growth or scaling down when demand decreases.

Now, businesses can scale their systems vertically, when they're growing or shrinking, or horizontally, by expanding or contracting. Scaling up or vertically usually involves strengthening your hardware, making sure it's able to handle your increased demands and boost your business capabilities.

On the other hand, scaling out, or horizontally, involves adding more nodes to your system, effectively spreading the workload. If you need to do both, you can. That's known as scaling diagonally (which just means that you're doing both vertical and horizontal scaling)

5 Reasons Why You Need Cloud-Scalability for Business Growth

You've made it past the what is cloud scalability section - yay! Now, it's time to discuss why cloud-scalability can be an absolute game-changer when it comes to growing your business and gaining a competitive advantage.

Reason #1: It's more cost efficient

We're coming in strong with one of the most important benefits businesses far and wide care about - it can save you money. With cloud software, you're able to scale your operation up or down as needed, and you only have to pay for what you need. This cuts IT costs massively, by minimizing the need for physical hardware and maintenance.

Let's say you work for a call center and you use cloud calling solutions at your company. You have a sudden surge in customer calls during a big promotion. With cloud scalability, you can easily scale up your resources to handle this increased call volume without worrying about extra costs for unused capacity during quieter times.

Reason #2: It results in improved performance

kpmg-chart-profit-performance 

Image Sourced from Assets KPMG

When you're able to adapt to rising demands quickly, your customers will love you. After all, meeting customer expectations in today's fast-paced and competitive world is crucial. But don't just take our word for it. KPMG found that 64% of the 2,100 business executives from 16 countries confirmed that the cloud and XaaS technologies had positively impacted their performance.

Suppose you're running an e-commerce site. You have a big surge in online shoppers during a flash sale on Black Friday. With cloud scalability, you can quickly boost your resources to handle this increased website traffic, optimizing CPU usage.

This means faster loading times, smooth transactions, and a seamless shopping experience for your customers. When your site performs flawlessly during peak times, it keeps customers happy and can even enhance your brand reputation. It's a win-win!

TIP: Check out our cost of cloud guide to learn more about how much money your business could be saving.

Reason #3: You have more storage to play with

Another reason why cloud scalability contributes massively to economic growth is its scalable storage space. When companies need more data storage to meet increasing demands, scalable cloud solutions step in, getting rid of the need for physical infrastructure and associated expenses.

Imagine your company is accumulating a massive pool of customer data. With scalable cloud solutions, expanding your storage capacity becomes a straightforward task. No longer do you have to worry about procuring and maintaining extra physical servers. Instead, scalable cloud technology seamlessly adjusts your storage needs.

This not only saves costs but also allows you to better analyze and utilize customer data for improved customer engagement and personalized experiences.

Reason #4: It can reduce disaster recovery costs

data-recovery 

It's never great when it happens. A tech disaster at work. Maybe you've experienced a data meltdown, or the system crashed at the worst possible time. Unexpected disasters can throw a wrench into your business operations.

However, here's where scalable cloud apps can be huge helpers. They offer not only a solution during crises but also deliver substantial enterprise architecture benefits. You can slash those disaster recovery costs significantly. How? Well, you no longer bear the weight of building and maintaining a secondary data center, which can be costly. Scalable cloud solutions let you bypass the need for a separate physical location, saving you both construction and maintenance expenses. So, when tech storms hit, your business can weather them without draining your budget.

Reason #5: It makes deployment more convenient

Gone are the days of grappling with physical hardware configurations. Now, IT staff can effortlessly deploy more virtual computers, usually with just a few clicks (which can sometimes take minutes). This streamlines the entire process, saving valuable time for your IT team. Rather than wrestling with complex setups, they can spend their time focusing on tasks that directly contribute to income generation.

Let's see this in action, shall we? Imagine your company needs to roll out a new software update across multiple departments, or perhaps you operate a busy airline and need to ensure a smooth passenger experience. With scalable cloud solutions and the integration of online check-in systems, your IT team can seamlessly deploy the update and ensure a hassle-free check-in process for travelers across the globe in no time.

No more manual configurations. No more time-consuming installations. Just a couple of actions, and the update efficiently implements across the entire enterprise architecture. In line with current business technology trends, adopting scalable cloud solutions like these is essential to staying competitive today.

Final Thoughts

So, that's the whole deal on cloud scalability, including what it is and how it can really boost your business, especially when it comes to economic growth.

Think of it as a toolbox crafted for handling the challenges of today's business world. Opting for cloud scalability isn't just a choice. No, it's a really smart move if you're aiming to work better and fuel your growth. It can save you money, time and help you to scale vertically, horizontally and diagonally whenever you want.

Here's to happy scaling, and may your business thrive in this ever-evolving digital landscape!

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Published Thursday, February 08, 2024 7:30 AM by David Marshall
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Comments
@VMblog - (Author's Link) - February 16, 2024 7:47 AM

Navigate identity and access management implementation with our concise guide. From scalability issues to UX design improvements, learn strategies to avoid common mistakes. Optimise your approach for a seamless and secure deployment, mitigating the risk

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