We all know about the growth of cloud computing. From a consumer perspective, the first thing that comes to mind is SaaS, or software-as-a-service. If we want to understand how seismic of a shift this form of technology is imposing on IT, though, we need to look at the building blocks, platforms and infrastructure.
Let’s look at cloud growth speed to better gauge this transition. Worldwide between 2015 and 2020, industry analysts from Bain & Company say that cloud IT services will expand from $180 billion to $390 billion — a head-turning compound annual growth rate (CAGR) of 17%. Who is buying these services? Well, it’s not just the startups, that’s for certain. 48 of the Fortune Global 50 have publicly stated that they are moving some of their systems to cloud hosting (some making the adoption more aggressively than others). These findings are from the Bain report “The Changing Faces of Cloud,” which also shows us a breakdown of the key cloud types: from 2015 to 2020, SaaS is predicted to grow at a 17% rate, while the combined group of PaaS and IaaS is forecast to expand at an almost staggering 27%.
Why? Why is cloud hosting growing so fast? Let’s look at why 12 app developers prefer cloud. (These are from statements credited to these individuals that were published by Stackify.)
1.) Download Speed – Jay Akrishnan at Kapture
Kapture, if you don’t know, is a customer relationship management (CRM) app. The company’s product marketer, Jay Akrishnan, says that what he likes about cloud is its ability to create a comprehensive data sync across all points of access. By achieving that unity of on-demand information, your constraints are removed from being able to fully embrace a communication system. Software is available to allow anyone to take advantage of its ability to exchange data, for business purposes such as collaborating between staff and with partners, and even for hobbies such as gaming. Akrishnan adds that cloud systems are generally stronger than what you could get with a VPN-based server.
Probably the most compelling point Akrishnan makes, though, is that the client must be able to rapidly download your app. If people cannot download very, very quickly, your app’s growth rate will suffer. Kapture relies on the cloud to deliver.
2.) Lowers Your Stress (to Increase Productivity) – John Kinskey at Access Direct
From a headquarters in Kansas City, AccessDirect provides virtual PBX phone systems to businesses around the United States. John Kinskey is its founder. The company hosts its core telephony app in the cloud – so the business is betting on the technology with its own performance and credibility.
Kinskey says that cloud is powerful because it creates multiple redundancies for your infrastructure by distributing your servers across various geographically disparate data centers. Also, and interestingly, the third-generation entrepreneur notes that the company moved this core software to cloud because of a couple pain points of operating the systems in-house. One was that they did not feel like they had enough redundancy. The other was that he felt they often had to spend too much at a time on labor and budget to maintain their own machines. To AccessDirect, he notes, both of these elements were causes of stress that were relieved by cloud.
Since Kinskey mentioned that aspects of being in a legacy scenario can be stressful, that emotional side should not be overlooked. If your current approach of using your own data center for an app is making your workplace or your own thoughts less calm, a couple of reports from risk management and insurance advisory Willis Towers Watson – both on its Global Benefits Attitudes surveys – are compelling. The 2014 report found that there was a high correlation between stress and lack of motivation on the part of staff: 57% of people who said their stress level was high also said that they were disengaged. Compare that to a 10% disengagement level among those who say their stress is low. Add to those numbers a key finding revealed by the 2016 report – that fully three-quarters of employees say stress is their top health concern. The bottom line is that if hosting your own app is stressful, it’s a wise business decision to move to cloud.
3.) Real-Time Decisions – Lauren Stafford at Explore WMS
Explore WMS actually gives us a great perspective because it is not software itself but rather an independent resource for supply chain professionals. The important concern for the journal is still the same as its leadership – knowing that this form of hosting can efficiently deliver warehouse management software. The media outlet’s digital publishing specialist, Lauren Stafford, notes that the key need she feels is met by cloud hosting is immediate data access. Integration is often tricky in an on-premise setting since you need to think about how to configure servers; in the cloud, she explains that you are able to build more flexibly. By getting real-time data to the end user, the company has the insight it needs to make better decisions, moment by moment.
In the case of warehouse management systems (the critical point for Explore WMS), business clients are able to get actionable real-time inventory details with a status that is reliable and relevant right now – important especially if a shipment gets delayed.
4.) Meets Simultaneous Needs – Dr. Asaf Darash at Regpack
Regpack is an online registration portal that has some big-name clients, such as Goodwill, the NFL, and Stanford. The system is designed using the knowledge its founder, Dr. Asaf Darash, attained while earning a computer science PhD focused on data networks and integration. It is notable, given that substantive academic background, that Darash believes in cloud hosting. He says that cloud is the best choice because it allows you to be able to see and work with your information from any location.
Interestingly, he also points out that when offering software-as-a-service, using cloud allows you to meet that need for your clients since they share that desire to work when they are at home or on a trip to another state or country. In other words, cloud meets that need simultaneously for both you and your clients. You can access your data with a web connection, take a look at your analytics, and grab whatever need-to-know details are in the system rather than having to download everything at the level of your own in-house server.
5.) Solves Problems Before They Happen – Kevin Hayen at Let’s Be Chefs
Let’s Be Chefs is an app-based weekly recipe delivery service, so it relies on the cloud for timely interaction with all of its service’s members. Hayen says that there are far fewer operations-related frustrations (to simply keep everything together and moving) that suck time away from laser-focusing the firm on growth and development. Scaling machines is no longer an issue for Let’s Be Chefs. In this way, it creates immediate peace of mind for startups, he says.
Check out the 7 other perspectives on cloud ‘s benefits for app hosting. Or, do you want high-performance cloud hosting for your application right now? At Total Server Solutions, we give you the keys to an entire platform of ready-built, custom-engineered services that are powerful, innovative, and responsive. Spin it up.