Why Do Business Departments Need The Cloud More Than IT?
Many articles about cloud computing have already been written, and this one will be a little different.
From the point of view of technology, we already know what facilitation the cloud is and what limitations may arise when using it. But it is the business that initiates many technological projects today that should be the ambassador of cloud solutions. Why? The answer should be sought in the business model and its transformation.
When the Apple iPhone and the app store (AppStore) entered the market, few could predict what a huge change it would bring about. How apps and games are distributed have completely changed. Apple was neither the first nor the only. But thanks to the scale of operation and great marketing, it was possible to popularize this type of sale.
Currently, we buy less and less often and pay for use – in the subscription model. This doesn’t just apply to apps, music, or movies. Today, for example, cars are also delivered in this way. Suppliers such as IBM can also provide the customer with an almost ready-to-operate bank in the service model.
Where is the source of this “magic”? In the availability and relatively low barrier to entry into solutions.
In the past, to have access to a given technology, you had to invest in software, implement it, and then maintain it. Today, we can use solutions, and when we do not need them – give them up and not pay.
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Where’s the business in all of this? In a complete remodeling of the solutions we offer to our clients. If we produce equipment (of any class) and sell it for a fixed price, our role and income change over time. Even customers satisfied with our solution come back to us every few years (and this is also uncertain). There is also a high risk that a cheaper equivalent of our offer will appear on the market. Nowadays, it is relatively easy to copy ideas or build cheaper solutions, and it is different with intellectual value and our know-how.
What if we built our solution with a layer of software and other elements that would make our product even better? What if we offered our client a subscription-based service? This has enormous advantages: constant income from a specific group of customers, lower retention, higher margin. Defects? The initial investment is required. But this is where cloud computing comes into play.
Scalable, flexible environment and platform solutions significantly lower entry barriers and give access to unlimited, state-of-the-art technology. Cloud is also paid as you grow – so when it turns out that the product is a hit and the number of our customers exceeds the first million, the solution and costs will only increase concerning the growing revenues. Sounds fair, right?
That’s what business needs the cloud for. It is supposed to enable companies to fulfill their most fantastic dreams of using technology because, thanks to the cloud, it is available to any organization without exception.
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