Removing barriers to innovation
Cloud has become indispensable for businesses. One of the key reasons for this is how it has impacted innovation. Without the need for physical infrastructure, and the operational and labour costs that come with it, cloud technology removes the typical financial barriers to innovation and digital transformation. Smaller businesses who would traditionally struggle to come up with the upfront investment required for on-premise implementations, can access new technology through cloud delivery models.
Meanwhile, cloud has also reduced the risks associated with investment. Expensive, rigid contracts can be a barrier for many smaller companies. The scalability of cloud computing means offerings can grow or shrink back depending on the needs of the company, helping to manage costs and financial risk. These flexible, cloud-based models will continue to grow in popularity. Within the past five years alone, the economy for subscription-based business models has risen by over 100% a year 2 , driving 90% of enterprises to transition or consider transitioning to this kind of set up 3 .
Cloud computing also encourages innovation because its speed makes it easy to experiment with new ideas, as feedback can be gathered quickly. If a strategy isn’t working it can be corrected quickly, rather than waiting until it has failed to take stock and learnings. This allows businesses to innovate more freely. Meanwhile, if businesses spot opportunities within the market, a cloud infrastructure allows them to respond and harness these opportunities more rapidly. With so much opportunity in the cloud, businesses will continue to transition, with the worldwide public cloud services market projected to grow 29.2% between 2021 and 2026 4 .