5 Effective Strategies to Make Money with Cloud Computing
Whether you are a service provider or an end user, you must read this article because Cloud Computing has really revolutionized the way we see IT (Information Technology).
What is Cloud Computing?
Although Cloud Computing is not a new phenomenon if you don’t know what it then read this paragraph.
Cloud Computing is an internet based service that provides shared processing resources and data to computers.
To put it simply for a layman, instead of having data stored on your computer’s hard drive, data is stored on and accessed from the cloud platform of the service provider.
According to National Institute of Standards and Technology (NIST) :
“Cloud computing is a model for enabling ubiquitous, convenient, on-demand network access to a shared pool of configurable computing resources (e.g., networks, servers, storage, applications, and services) that can be rapidly provisioned and released with minimal management effort or service provider interaction”
Why are Companies offering Cloud?
In last 10 years, Cloud Computing has become a key focus area for tech giants like Amazon, Google, Microsoft, IBM, Oracle etc.
According to the Gartner, by the end of this year, IT Cloud Services revenue is expected to reach over $133 billion.
“The IT spending is steadily shifting from traditional IT offerings to cloud services (cloud shift). The aggregate amount of cloud shift in 2016 is estimated to reach $111 billion, increasing to $216 billion in 2020.” It is further estimated that “more than $1 trillion in IT spending will be directly or indirectly affected by the shift to cloud during the next five years.”
Hence, both service providers have come to realize the importance of cloud computing.
Related Article: 4 Data Protection Tips to Keep Your Data Secure On-The-Go
4 Good Reasons for Businesses to Move on to Cloud Infrastructure
If you are an end user of cloud computing then there are 4 good reasons to move your business to cloud infrastructure now.
You choose a plan depending upon the nature and need of your business.
1. Accessibility and Flexibility
One of the greatest advantages of Cloud Computing is accessibility and flexibility. You can access, modify, save and send files to any device anywhere in the world with one central location.
You can create groups with different level of access rights. All your team members can coordinate with each other with cloud computing. This will really increase productivity, saving your time and money both.
2. Data Recovery
What happens if you lost your laptop or if it gets stolen? And if you do not have any backup then you lose all your data and you cannot recover your data which was a crucial piece of Information for you.
But if you put all your data on the cloud then you don’t have to worry about your laptop and the lost data.
3. Disaster Recovery and Security
Cloud Computing can help you with disaster recovery. In the case of any disaster like power cut, equipment breakdown, natural calamities like flooding, earthquake etc Cloud Computing will take care of all of these unforeseen situations.
Security wise all your data is encrypted so it can’t be hacked.
Cloud Computing is very affordable considering all the advantages it has to offer.
There are 5 ways companies/vendors/service providers can make money with Cloud Computing.
1. Software as a Service (SaaS)
SaaS is the most common model to make money when it comes to cloud computing. The model can be called as tiered pricing. The pricing is subjected to metrics such as data volumes, services, modules etc. Some of the best examples of companies making money through this model are Salesforce.com and Hub Spot.
It helps companies to build a long term relationship with their customers. Users who are expecting high growth of their new company can use SaaS.
2. Platform as a Service (PaaS)
Second most effective strategy to make money is PaaS. Here vendors give a development environment which comprises a toolkit and standards for application developers.
Some of the best examples are Microsoft Azure, Google App Engine. For getting PaaS customers have to pay one huge sum up front and buy it for the life time.
This strategy is also known as Perpetual License Model.
3. Infrastructure as a Service (IaaS)
This is the most basic form of cloud service provided by any Cloud service provider. It offers computing infrastructure like virtual machines and other resources to customers.
IaaS will consult to online services that provide high-level APIs used to develop low-level details like underlying network infrastructure, location, data portioning, security etc.
Specialized IaaS is where vendors can make money with because of IaaS, in general, is too much saturated. The best example is Amazon Web Services or AWS.
4. Mobile Backend as a Service (MBaaS)
The fourth strategy is Backend as a Service or BaaS. Vendors can exploit the Cloud services for the handheld devices like smartphones.
You can learn from customers shopping habits and suggest them items on the list they can shop for.
Cloud App is very lucrative for companies because there are very few good mobile cloud service providers in the market.
5. Security as a Service (SECaaS)
Last but not the least way to make money with cloud computing is Security as a Service Model. Here a service provider combines their security services into a corporate infrastructure more cost effectively.
The vendor provides services on the subscription basis very effectively as compared with any other big corporations. Security services include antivirus/malware, hacking detection, authentication etc.
So these were 5 effective strategies for service providers to make money with Cloud Computing.
Top Companies Offering Cloud Services
Here are few companies that are already offering Cloud Services as their major service.
1. Amazon Web Services
It dominates the IaaS worldwide with 45% market share. Last year Amazon web services generated more than $3 billion in profits.
2. Microsoft MSFT
Last year the total revenue of MSFT was $12 Billion.
3. Google’s GOOG and GOOGL
Its market share is just 4% but still among the top 5 cloud service providers in the world.
Salesforce is top CRM vendor with 20% market share.5. Adobe (ADBE)
5. Adobe (ADBE)
ADBE has seen 20% growth last year with $1.63 in annual revenue.6. Oracle
It offers all the three services SaaS, PaaS, and IaaS with annual revenue of $1.1 billion.
There are other cloud services providers like IBM or Alibaba’s (BABA) in the market which are very popular among customers.Cloud computing is picking up
Cloud computing is picking up a pace with more and more companies shifting towards these services in their day to day business. Hence you can grow and develop your practice and can make some real lucrative money with Cloud Computing.
Author Bio –
Pritam Nagrale is a passionate blogger and runs a digital marketing company in Mumbai. His blog MoneyConnexion writes about money making ideas and Tips on saving money.
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