By Steve Cerocke
I often write about the how the cloud is transforming the way that businesses implement business software and services. What is becoming more clear is how the cloud is changing the way business works.
Many years ago Microsoft was the tech startup that pioneered the way businesses use technology by creating software platforms that enabled hardware manufacturers and developers to revolutionize business computing platforms and services.
For over 20 years, Microsoft, its development partners and an army of solution providers have provided computing solutions built on servers and software that have resided on-site or in data centers. Recently that model has changed as software developers have started to provide their software applications as cloud-based services.
These cloud services have lots of advantages for businesses, including increased security, the ability to scale use, and immediate access to new options and software versions. Cost benefits come in the form of reduced requirements for premise-based systems and maintenance as well as access to new features and capabilities that can drive new business opportunities.
The move from premise-based computing services to cloud computing has been rapid and is really picking up speed. More and more software developers, data centers and bandwidth providers are building capabilities to enable cloud systems and access. This rapid move to the cloud is causing significant disruption and change in the technology industry as well as in businesses that use technology.
A good example is Microsoft and their strategy to move to the cloud. For years Microsoft has relied on the sale of software licenses and code to run servers and desktops for premise-based computing. Many would argue that they were slow to cloud game as new companies like Salesforce.com built cloud solutions from the start. However, their latest financials show a positive trend: Sales of their cloud services, including Azure and Office 365, are growing rapidly and forecast revenue is even brighter.
This move to the cloud for an established tech giant like Microsoft was disruptive to the organization and it took time and effort, but their strategy is paying off, and their newest solutions around Windows 10’s cross-platform capabilities and new phones and tablets are helping to diversify the brand.
Another good example of change is one of the latest acquisitions that network equipment maker Cisco recently made. Cisco has traditionally built and sold network switches, security peripherals and IP voice products for small business and enterprise clients. Their recent purchase of the company OpenDNS foretells the change that is occurring even at the hardware device level. OpenDNS is a cloud based provider of security services. These services have traditionally run in the code on Cisco’s hardware products but with this purchase it is clear that future solutions will move to cloud based services.
If your own or manage a business, it’s important that you understand how these large-scale disruptions can create opportunities for you. We are seeing more acquisition activity and regional expansion of businesses that have implemented cloud solutions and now have fewer costs and hurdles to overcome as they expand.
Steve Cerocke, founder/president of IQ Systems Inc. of Reno, can be reached at 775-352-2301, ext. 1001, or firstname.lastname@example.org.