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Cloud Technologies and How It Has a Competitive Advantage in the IT Sector

Learn about cloud technologies and how it has a competitive advantage in the IT sector.

Cloud computing and cloud technologies deliver a wide range of services through the World Wide Web (WWW). The resources include applications and tools such as databases, services, software, data storage, and networking.

Instead of storing the files on a local storage device or hard drive, cloud technologies store them in a remote database. Cloud technologies have become popular due to cost savings and increased performance, security, efficiency, and speed.

Cloud technologies provide users with several different functions. They include email, creating and testing applications, data retrieval, backup, and storage, data analysis, audio, and video streaming, and on-demand delivery of software. When you use cloud technologies, you should have proper knowledge about them. So it is always recommended to take Cloud courses that will master you in all concepts.

Cloud technologies in the IT sector have a competitive advantage. Let’s look at this further.

Competitive Advantage of Cloud Technologies in the IT Sector

The research discovered that 77% of organizations and companies think that cloud technologies have given them a competitive advantage. Businesses that have adopted cloud technologies have gained a competitive advantage in multiple areas. These include:

  • Cloud technologies allow software suppliers to design and launch applications without the time-consuming installation and configuration process. Customers can sign up for the services and start using them immediately.
  • Cloud technologies allow the organization’s IT department to shift their attention from performing routine maintenance and offering continuous support of software infrastructure to helping with strategic projects that promote organizational growth.
  • Cloud technologies allow organizations to optimize expenses and achieve increased financial flexibility over their competitors not using the cloud.
  • Cloud technologies allow organizations access to big data and a wide range of tools that enable them to sort through vast unstructured data quickly to obtain insights to make better decisions.

In addition to these benefits, organizations that move important applications to the cloud receive increased flexibility, freedom to focus on key business competencies instead of issues related to installing and maintaining infrastructure, and operational efficiencies.

Current Market Trends in Cloud Technologies

Quantum computing will transform organizations. Companies are using the principles of quantum physics to develop next-generation products for consumers. Supercomputers demonstrate the way quantum computing works. They can perform algorithm calculations and process large datasets quickly. You can use supercomputers to encrypt electronic communication and augment cybersecurity. Quantum computing also speeds up the transaction process, which then saves more time and makes the process efficient.

Automation helps organizations improve productivity without putting in a lot of time and effort. The automation tools can address errors in business processes while streamlining them to produce optimal results. Automation eliminates the need for a manual process to manage applications and routine tasks and leads to increased data consumption.

Security and Cloud Compliance

A cloud service provider provides an organization with an additional layer of security in addition to the built-in features that come with the cloud system. Organizations also need to create security measures and compliance for current services and policies.

Serverless Paradigm

The serverless paradigm facilitates the cloud to perform a hassle-free code snippet for the developers.  Developers can divide the software into several different codes and then upload them on the cloud to cater to the needs of users. This practice allows for a faster release cycle of systems and software.


How is the IT Sector Adjusting to Cloud Technologies?

Since 2019, Cloud computing spending has increased at 4.5 times the rate of IT spending. From 2015 to 2020, it is expected to grow 6 times the rate of IT spending. Global spending on public cloud computing is set to increase to $162 billion in 2020.

The IT model has become more than a standard software and hardware market, as the offerings now include production systems, email applications, storage, and backup services, security options, and more. Here’s how the IT sector has been affected by cloud technologies:

  • The IT employees need to acquire new specialties and skills to ensure the successful deployment and implementation of cloud technologies within an organization. IT employees will need to educate themselves on cloud computing, learning its advantages, and how they can integrate it into the existing business model.

They need to discuss issues regarding the security and maintenance of cloud technologies with the cloud provider and supervise the migration along with the ongoing relationship with the cloud provider.

  • The IT infrastructure has undergone a drastic makeover due to several applications being transferred to a public or private cloud. Software developers will need to change the method of designing and delivering applications.
  • The IT department no longer needs to put in a lot of effort to maintain it. However, transferring the data to the cloud system diminishes their control because it’s stored in the cloud provider’s data center. The data is much safer and secure in a cloud than it would be in-house.
  • Cloud providers selling a managed cloud option employ security experts to manage the applications with options to increase security.
  • Cloud technologies also reduce the need to hire more IT support staff. The money they save from hiring fewer employees will need to go towards the training of current employees for using the systems and applications.
  • Cloud computing software is highly customizable. Software developers need to create a code for the cloud. Cloud providers also need to make the transition to using the cloud easier. It also reduces troubleshooting due to the applications being Software as a Service (SaaS).

Cloud technologies shift the interest from using IT resources and capital expenses to utility and efficiency. Cloud technologies enable companies to spend less on IT processes. Companies that fail to incorporate cloud computing into their business model may experience a grave business and economic disadvantage.

The Pros and Cons of Cloud Technologies

The pros and cons of cloud technologies include:


  • Can access the cloud from several devices such as iPad, netbooks, tablets, and mobile phones and share the documents via email and other applications.
  • Eliminates the high software costs, as most software is stored on the cloud servers, hence removing the need to buy costly software and pay for licenses to install them.
  • Lowers costs, as companies don’t need to buy costly devices.
  • Offers access to tools for testing products, features, applications, and upgrades.
  • Provides automatic recovery of lost data, free and limitless storage space, and security options to secure the data in the cloud, such as encryptions, auditing, and passwords.
  • Removes the high expenses at the front of the servers, hence eliminating the additional costs related to increasing hard drive space, memory, and processing power.
  • There is no need to set up, install, and arrange the cloud on a new device, as it’s already there.


  • Cloud providers may not be easily reachable in the event an issue occurs, and you may have to rely on online communities for help.
  • Even though your data is secure in the cloud, you still require the IT department to assist and advise you regarding security, as without their guidance, your system may be prone to attacks from hackers.
  • May run into compatibility issues, as certain tools, software, and applications only connect to a specific device.
  • Some cloud providers offer non-negotiable contracts, and the added features may increase the installation costs of the cloud system.
  • The load on the internet can cause the cloud to load slowly.
  • You can’t access the cloud without an active internet connection.
  • You can’t benefit from using cloud computing if you have low bandwidth.

Cloud Technologies:  Market Capitalization

The market capitalization for cloud technologies valued at $199.01 billion in 2019, and by 2027; cloud computing can soar to $760.98 billion. From their market capitalization, we can tell that cloud computing will become essential for companies to operate successfully in the modern age.

In the coming years, cloud technologies may evolve more than they have now. Organizations count cloud security, cloud architecture, and clouding computing as the three most important IT skills for people to learn. However, reliance on cloud technologies can eliminate a few jobs while creating new ones. Cloud technologies have caused organizations to reconfigure the roles within their IT department instead of eliminating it.

Since the cloud allows machine learning, artificial intelligence, and the Internet of Science, it’ll create several new jobs around data science. Organizations will require their IT staff to learn new skills, such as performing analytics to generate data. Cloud technologies can promote growth in several new areas without resulting in job loss.

IT departments will remain functional and an integral part of organizations, even with the implementation of cloud technologies. However, they’ll need to learn new skills related to cloud computing to maintain a part of the IT workforce.

Written By

Vincent is a blogger that has a passion for writing. He publishes content on technological advancements and financial tips.

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