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Four Top Reasons Why Enterprises Embrace the Cloud Technology

People and cloud technology


Cloud technology means different things to different people. Some are attracted by the lower costs while others find the efficiency and flexibility as the main attractive features. Here are four top reasons why enterprises find the cloud as an important development.

Better customer acquisition and retention

This is the most important reason why companies have moved into and are already present in the cloud. After all, an enterprise has to look at their bottom line and this means customers. How does cloud technology lead to better customer acquisition and retention is still being debated among the marketing circles but the conclusion is beyond doubt. We can speculate that better customer engagement, smoother interactions and near faultless transactions have been made possible by the cloud. Whatever may be the real cause for the dramatic improvement in customer acquisition, it cannot be denied that cloud has been an important factor.

Cloud is a Web 2.0 enabler

Let’s not forget that this era, I mean Web 2.0 era, belongs to collaboration – between manufacturers, vendors, suppliers, customers and even between competitors. This enabling process has become easier due to internet technology which has made communication seamless and extremely interactive. There are many tools, protocols, technologies and systems which have led to the collaborative milieu. Numerous studies have shown that cloud computing has contributed significantly in creating this environment and has lately become integral part of it.

Modern enterprises that have embraced Web 2.0 in a big way have also incorporated cloud technology mainly because they go well together. The tools and processes which enhance Web 2.0 experience are readily available in a cloud and don’t have to be developed independently. This has given a boost to cloud technology.

Flexibility in deploying online infrastructure

I am sure that readers would be surprised at ‘flexibility’ as a factor finding third position. If you go by popularity and the hype surrounding cloud computing, flexibility should have come first in the list of priorities. But mature enterprises have plenty of experience in managing infrastructure and have found ways to create flexibility even while working in traditional server based datacenter technology. As such, only new enterprises and entrepreneurs find this factor attractive because they are unable to anticipate load on their servers due to fluctuating traffic. This is the reason why ‘flexibility’ finds third position in my list.

Discussing further fluctuating traffic, GMO Cloud America offers free Auto Scaling, wherein stable server operations are to be expected even during heavy server load emergencies.

Cost considerations

I have hammered on this fact so many times that I am embarrassed when I talk about cost savings when enterprises migrate to the cloud. It’s like stating the obvious. Various enterprises have found cloud to be economical in various degrees depending on the kind of cloud configuration and vendors which they have chosen. Some ventures have surprisingly found no solace in the cloud. Expenses connected with training employees to adopt new technology can sometimes outweigh the cost savings. Sometimes faulty approach towards migration to the cloud may lead to unanticipated expenditure.


We have to get our priorities right if we want our cloud migration to be successful. Looking at things purely from cost perspective can lead to disappointment. A holistic approach towards cloud technology is required. This fact has been confirmed by enterprises that have experienced change after migration.


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About the Guest Author:

Sankarambadi SrinivasanSankarambadi Srinivasan, ‘Srini’, is a maverick writer, technopreneur, geek and online marketing enthusiast rolled into one. He began his career as a Naval weapon specialist. Later, he sold his maiden venture and became head of an offshore Database administration company in Mumbai. He moved on as Chief Technology Officer of one of the largest online entities, where he led consolidation of 300 online servers and introduced several Web 2.0 initiatives. He holds a Master’s degree in Electronics and Telecommunication.

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