What Is Cloud-based Software?
Cloud-based software simply refers to any software program or application that’s stored, managed, and available through the cloud. To access such services or software programs, users must have an internet connection. It is generally stored on shared computing resources, such as cloud servers. They offer distributed processing power, storage, and memory, over the Internet. Instead of data being stored in a single physical location, it is stored and maintained across several remote data centers using a cloud computing framework.
How Does Cloud-Based Software Work?
Cloud-based software uses data centers with massive computer servers that physically store the data and make it available online to users via the web. The cloud storage uses a chain of servers that includes both master control server and other storage servers. The servers are all linked with one another and it can be utilized depending upon your use and requirements, and billed accordingly. Cloud storage saves you a lot of money otherwise you would have to spend on more strong servers as your business needs increases. But in cloud storage, you only pay for the space occupied by your data in the cloud.
Users can access the software’s functionality from anywhere by simply logging in through a browser, allowing them to remotely upload their content, store and retrieve the data as and when required. Thanks to the cloud, you no longer need to purchase servers, external hard drives and memory sticks to carry your data from one place to another.
Cloud-based software is of particular importance to small and medium-sized businesses, as it allows them to access a full range of functionality from advanced applications, such as asset tracking software, without having to make a substantial upfront payment.
The Advantages of Cloud-based Software
1. Cost-Effectiveness
The cloud is a cost-effective option that allows easy access to important company data, saving time in project startups. Most cloud-based services offer a pay-as-you-go model, allowing you to only take advantage of and pay for the services your business needs. This payment structure also typically applies to data storage space, meaning you only pay for the exact amount you require.
These services are cost-effective, helping lower overall expenses and increase return on investment (ROI). Additionally, if your business expands and requires more services or storage space, you can always quickly scale your products up and only pay for what you need. Another benefit of cloud-based software is that it can help reduce maintenance costs over time.
2. Improved Data Security
Approximately 78% of employees lack confidence in their company’s cybersecurity posture, causing 91% of businesses to increase their budget for safeguarding their data. Enhancing your company’s approach to cybersecurity can prevent internal data theft and keep sensitive information safe. As a result, you have fewer headaches to deal with — and your company remains profitable and in good standing.
Adopting a cloud-based system can provide a high level of security. Digitized business information and documents are at risk of cyberattacks and hackers, making improved data security necessary for any successful business. A cloud host can help monitor private documents and ensure security for confidential files.
3. Automatic Software Updates
Missed software updates can reduce productivity and lead to unexpected downtime. With many responsibilities, it can be easy for employees to forget to update systems manually — traditional purchase software requires manual updates, which can be time-consuming, expensive, and even confusing if no IT specialist is available to help.
With the automatic software updates included in cloud software, you can save your company time and ensure that the latest updates are automatically refreshed as soon as they become available. This automation saves valuable time and money on outside IT consultation or services. Additionally, when your employees don’t have to handle routine maintenance, they have more time to allocate to other strategic initiatives and responsibilities.
4. Data Recovery and Backup
While preventing downtime and data loss is essential, it’s not always possible. Occasionally, your business will come across an unexpected complication that leads to either situation. One of the most crucial steps to take is to minimize the overall severity of downtime and control data loss as best as possible.
Even slight complications can lead to downtime, decreasing productivity, negatively impacting the brand’s reputation, and costing revenue. Both disaster recovery and data backup are two critical elements to consider in times of potential emergencies or complications. From natural disasters to power outages, data recovery and backup can help minimize the fallout of an emergency situation — and cloud-based software integrates these features.
If your computer system crashes or otherwise becomes affected during an incident, you can rest assured your business’s data is securely backed up thanks to your cloud-based software.
5. Increased Collaboration
The cloud can help improve collaboration between employees by providing easy editing and data sharing options. As the modern workplace evolves, several employees may work outside of the physical office space, such as remotely or at satellite locations. To maximize productivity, employees need convenient access to data remotely and in real-time.
Some cloud-based software allows for role-based access, meaning only accredited employees can access sensitive information. These access controls can help prevent external parties or unauthorized people from accessing sensitive information. Another benefit of cloud computing is that managers can effectively manage teams remotely, meaning employees across the country or around the globe can work on the same projects as those in the main office.
6. Ability to Scale Up or Down
These services can easily scale to fit your company’s unique needs. As your company expands, you can add additional cloud services or expand your current options to match your business’s newest needs. This process is also streamlined, especially compared to scaling up or down on-premise resources, which typically takes several months to complete in its entirety. Ultimately, cloud-based services are much more time-effective to scale up.
7. Mobile Access
It’s a poor business practice to store vital information on one computer or in one location. To work effectively, all employees require easy access to essential files and documents. Fortunately, employees can easily access cloud data through electronic devices, including laptops, smartphones, tablets, and more. This ease of access helps improve your team’s productivity and streamline business operations while maintaining a proper work-life balance for employees.
8. Valuable Data Insight
Amid today’s digital world, data insights play an essential role in making informed business decisions. The cloud software you use can create customized reports for various data analytics, allowing management access to these reports for consideration. This type of in-depth reporting can provide an advantage over your competitors when making business choices.