As reported by The Atlantic, on-demand computing began its Renaissance in 2013. The idea behind it is for companies only to provide computing services at the moment they’re needed. For example, if an employee is going to be on the road for eight hours getting to a meeting, that person’s computer, if a physical desktop, would be sitting idle. With on-demand services, the person would simply sign out, and someone else could use the bandwidth and power. Such is the efficiency of the concept.
The chief advantage for companies is their ability to trim costs. Instead of multiple physical terminals, all of which might require separate and expensive licenses for software packages, the company’s computing power could be cloud-based, which would only require one software license. Computerworld notes that “software as a service” is the least likely cloud-based item to cause any legal issues. Obviously, the company also wouldn’t have to purchase great numbers of desktop or laptop computers because not everyone would need one at all times.
If a company’s workforce is highly mobile, as in the previous given example about someone who had to drive eight hours to a meeting, then having an on-demand resource would enable the employee to accomplish tasks without schlepping hardware from place to place. Also, if all of the company’s employees were “in the cloud,” then depending on circumstances, the company could eschew a brick-and-mortar location altogether. While contributing to flexibility, these items also contribute to an overall cost-saving strategy for most companies.
Additionally, a single cloud-based entity is far easier to upgrade than hundreds of satellite computer systems. During periods of lesser activity, the system can be scaled back too. This flexibility allows businesses to customize their computing needs fully and helps them avoid throwing good money after bad when needs change.
The Wave of the Future
Back in 2013, cloud-based software made up 22 percent of all software used by manufacturing and distribution companies. That number is projected to increase to as much as 45 percent by 2023. As companies make the transition, more and more of their competitors will have to make the same transition to keep pace. Efficiency, cost-effectiveness, and flexibility of power are all central themes to the idea of having computing services on-demand.
These centralized systems also enable companies to share information quicker and easier than before. For example, “Sally” is a manager in Des Moines, but she needs to know how the factory in Tallahassee is doing so that she can plan her own production schedule. Instead of emailing the manager in Florida or calling that person, Sally can just look it up in the cloud, which saves times and increases productivity. When multiplied by several hundred “Sallies,” the savings of time and money grow exponentially.
Forbes projects that, worldwide, the total market of on-demand computing and other cloud-based items will be $178 billion in 2018 and will continue to grow at a rate of 22 percent annually for the foreseeable future. Companies wishing to “join the fun” will have to modernize their ways of thinking and doing business.
Source: The Atlantic