Cloud innovation is more often viewed as a means to lower the costs, even though its most significant benefit is skyrocketing revenues. This surge in revenue can come from several streams such as through accelerated innovation of new products and processes, improved customer relationships through better service and experiences, and more targeted offers
Organizations that better understand the potential of revenue growth are better able to exploit cloud technologies such as artificial intelligence, big data, blockchain, and the internet of things. This eventually gives them a competitive edge over other players, resulting in skyrocketing revenues.
Let’s dig deeper into how cloud innovation increases revenues.
How Cloud Innovation Results in Skyrocketing Revenues
It’s true that in the beginning, cloud computing is all about savings, allowing businesses to avoid up-front fees, infrastructure costs, software upgrades, and ongoing maintenance. But when you start looking beyond the operation concerns, the cloud really begins to behave like an enabler for expanded horizons and increased business opportunities.
It’s the agility and innovation of cloud computing that translates into increased revenues. To understand how cloud innovation and revenue growth connects, let’s take a look at the results of this recent survey. 338 executives took part in the cloud innovation survey, which was designed to determine what sets successful or cloud-savvy companies apart from those that don’t rely on cloud.
Businesses with a clear plan and cloud vision saw incredible results than less cloud-savvy companies. The survey defined ‘cloud leaders’ as businesses demonstrating the best performance in their loud operations. Their revenues are growing 2.3 times faster, with a 35% average annual increase in top-line revenue.
Not only are cloud leaders faster and more agile but they are also 2 times more likely to achieve a cloud-driven competitive advantage. When it comes to delivering services and applications, they’re 4 times more likely to launch new services and applications and more than twice as likely to be ‘somewhat or extremely efficient’ in doing so.
Cloud computing accelerates innovation in different ways. Since cloud services are based on on-demand access, they eliminate the risks associated with experimentation, which is a necessary component for innovation. Thus, businesses no longer need to take risks with unproven new technologies. Many cloud microservices offer free trial periods to allow companies to experiment with technologies and then make decisions.
Digital transformation provides businesses with the flexibility they need to diversify their revenue streams or expand into new markets. Many cloud service providers have servers all over the world that can serve as your company’s office in different parts of the world. In other words, you benefit from a global workforce without opening offices in other cities or countries.
R&D teams use cloud creativity to accelerate new product development. With large amounts of data stored in the cloud, they can access information and work from anywhere. Cloud-based applications can be operated from anywhere too, thereby democratizing innovation. This means innovation is no longer restricted to complex corporate labs. Anyone can be an innovator.
Instead of having to wait for in-house development of complex features from scratch, businesses can depend on a mix of already tested tools and environments such as collaboration tools, ERP functions, open-source hardware and software, industry-specific SaaS tools to enable efficient workflows, and so on.
If you use data analytics, the cloud allows you to respond to business needs in real-time. To learn about the innovative capabilities of cloud computing, take a look at this guide.
Let’s now take a look at what practices help produce the best results for cloud-savvy companies.
Digital Transformation Practices to Boost Revenues
The key to cloud success is to have a vision for cloud-based digital transformation. Based on the above-mentioned survey, cloud leaders have a crystal-clear vision of how they plan to advance with the cloud. Plus, they view cloud optimization as an ongoing process as opposed to a one-time exercise. You aren’t likely to see significant changes in revenues if you have no or a vague idea about digital transformation.
Governance also plays a critical role in the innovative cloud process. To ensure that your cloud deployments comply with enterprise standards, you must clearly define rules regarding reference architectures and configuration. Stakeholders should have a clear understanding of budget guidelines and cloud deployment policies.
Another great practice that cloud leaders are adopting is to have a role dedicated to cloud management such as a ‘cloud steward’. In the survey, 76% of the cloud leaders were found to have or were planning to implement such a role. The top-tier organizations have come to favor this role to a great extent.
Businesses with forward-looking and inspired cultures and leaderships are able to view the cloud as a tool that facilitates their efforts. They favor and promote innovation, more efficient information sharing, and a simpler hierarchy. More than anything else, they know exactly how to make cloud creativity work for them to drive revenue.
Hence, to become a cloud-savvy organization, you need to have all of the above as well as empower ownership and designate responsibility. Professionals should understand the cloud’s revenue potential more than cost-savings. You’ll need to set metrics for success and leverage automation to achieve the goals.
To sum it up, cloud innovation helps achieve skyrocketing revenues not just through cost-savings but in a variety of other ways. Improved customer service, accelerated new product development, and new market opportunities are only a few ways businesses are already benefiting from the cloud. As we head into the future, more value should be realized as emerging technologies such as AI, blockchain, and IoT are more widely integrated into the cloud. These trends will better explain how cloud innovation increases revenues with digital transformation.
If you’re looking for a reliable and highly secure cloud service provider, get in touch with Cloud Computing Technologies. Whether you’re looking for solutions for data analytics, Kubernetes or Amazon AWS, Cloud Computing Technologies can help you out. Contact us today by dialing 1-800-804-9726!