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Analytics Insight presents the 8 Common Uses of Cloud Computing

Cloud computing refers to a computer paradigm and a collection of technologies that enable users to pay for cloud services over the Internet. Despite the fact that cloud computing is a comparatively recent paradigm that has only recently gained widespread acceptance, it is growing in popularity. The many uses of cloud computing have proved beneficial in offering an assortment of solutions to everyone from government departments to non-profit organizations and tiny start-ups. The following are some popular cloud computing applications that should make you think about how this technology may help your company.  

1. Software Testing and Development

If you’ve ever built an in-house app, you know how time-consuming, costly, and expensive the process can be. It necessitates the installation and deployment of sophisticated gear and software, as well as ongoing training for all personnel involved.  

2. Social Networking

Social networking is maybe one of the most underappreciated uses of cloud computing. The Software as a Service (SaaS) cloud computing concept is exemplified by platforms like Facebook, Twitter, and LinkedIn. Social media platforms are designed to assist you in finding individuals you already know – or connecting with those you don’t. They also provide you with a variety of options for exchanging data and information, including tweets, photographs, instant messaging, and posts. Alongside cloud storage, one of the most frequent use cases for consumer-driven cloud computing is social networking.  

3. Big Data Analytics

Big data is required by businesses of all sizes for a variety of reasons. Some people gather it in order to uncover new business possibilities, while others do so in order to solve complicated issues. Big data collection and analysis, on the other hand, isn’t easy. It necessitates the employment of massive computational resources, which come at a high cost. Cloud computing, without even a doubt, enables big data analytics simple, useful, and affordable. Amazon Web Services (AWS) provides a variety of analytics services for distinct use cases.  

4. Data backups and archiving

We now live in a society where cybercrime has become the norm. There isn’t a day that goes by without big data breaches, which may be catastrophic for a number of organizations. Traditional data backup solutions have been shown to be successful in storing data for a long period. Despite this, they are susceptible to infections, and because of their portable nature, they can become misplaced, posing a threat to contemporary enterprises. These issues can be addressed using cloud-based backup and archiving. You can backup or preserve your sensitive information to cloud-based storage systems using this method. This gives you peace of mind that your data will be safe even if your live data is hacked.  

5. File Storage

There are several choices for storing and accessing your data. There’s your laptop’s hard disc, an external device you use for data backup and transfer, network file sharing, USB devices, and more. Cloud storage comes in a variety of forms, including block, file, and encrypting data. These are suitable for a variety of applications, including shared filesystems, block-based files, and backup and preservation systems. You’ll receive safe access and the scalability to expand or reduce storage based on your demands and finances with cloud services storage services like Amazon S3, DropBox, or OneDrive.  

6. Disaster Recovery

Do you know how much it would cost you if you didn’t have a business continuity strategy in place? According to research, over 75% of firms that suffer a crisis and do not have a disaster recovery plan in place collapse within three years of the event. Building a disaster restoration site and evaluating your company continuity strategy has traditionally been a costly and time-consuming process. That doesn’t have to be the case any longer! You may create a disaster recovery system in the cloud using cloud computing. In this strategy, you build a copy of your development site and duplicate data and config settings on a regular basis.  

7. Communication

People may use cloud computing to use cloud-based methods of communication like calendars and emails. Furthermore, cloud-based messaging and calling apps like WhatsApp and Skype are all based on cloud infrastructure. Not just on your smartphone, but also in the cloud, are the communications and data you send and receive. This allows you to access them via the internet from any gadget and from anywhere on the planet.  

8. Business Process

You’ve already included cloud computing within your management approach if you use company management tools like Enterprise Resource Planning (ERP) or Customer Relationship Management (CRM). Software as a Service (SaaS), which primarily relies on cloud computing paradigms, is used to deliver such enterprise apps. They make it easy to maintain, secure and manage your company’s critical resources. Furthermore, they give service providers and their customer’s maximum efficiency.  


Cloud computing is undeniably a burgeoning business, and there are several benefits to using cloud computing services. New businesses are increasingly migrating to the cloud, which has emerged as the best platform for software testing, creation, communications, storage, and installation.

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Understanding The Basics Of Cloud Computing

This article was published as a part of the Data Science Blogathon.

Table of contents


What is Cloud Computing?

Service Models

Deployment Models

On-Premise vs Cloud Computing



In this article, we will learn about the basics of cloud computing. We will see what are different service models, what are different deployment models and finally we will understand the difference between on-premise architecture and cloud computing.

Cloud Computing refers to the delivery of computing services including storage, servers, databases, networking, software over the internet. To offer faster innovation flexible resources. Here you have to pay only for those cloud services which you use. So that you can help with your operator cost.

Nowadays many leading companies like Amazon are investing billion dollars in cloud services.

What is Cloud Computing?

First, we will understand the situation that existed before cloud computing came into existence.

In order to host a website, people used to face these problems.

1. Buying a stack of servers which are very costly.

2. With more number of servers usually there is high traffic.

3. Troubleshooting problems.

4. Monitoring and Maintaining servers is also very difficult.

In those days the data that is being generated is not an issue to store. But nowadays data is very huge. Everything is online these days. To play music, to watch movies, Business matters, to shop online, e-books, Applications for everything data is being generated and to store this is a huge task.

All these problems which I have mentioned so far are taken care of by the cloud.

Now let’s understand the cloud in detail.

Think of the cloud as a huge space that is available online. Cloud is like a collection of data centers where u host your websites and store your files. To understand better, there were a group of organizations that went and bought these servers, these compute services, storage places, and all. And all these have their own network. What you have to do is just go and rent these services. That too the amount of it you want and to what extent you need it. You have to rent and use what you want. So you ended up paying for what you used.

Cloud Computing is storing data on remote servers, processing data from servers, and Accessing data via the internet. You can actually access it from anywhere in the world.

Source: Author

Service Models in Cloud Computing

Basically, there were different types of people like there were some people who just uses the cloud to use only one particular resource and there were some who will create their own applications, create infrastructure, and all those things. So Cloud service providers came up with some models which can satisfy different people’s needs.

Let us try to understand these models.

There were three types of service models.

 Let us start with SaaS.

SaaS(Software as a Service)

What happens here is you just use the software that is already being created and maintained by someone else. To understand it, think of Gmail where you can actually send and receive emails. But you neither created nor being maintained. Google will take care of everything. Similarly here also you just consume the service.

Example: chúng tôi provides CRM which is Customer Relation Manager on cloud infrastructure to its client and charges for it but the software is owned by salesforce company only.

PaaS(Platform as a Service)

Here cloud provider gives the ability to deploy customer-created apps using programming languages, tools, etc that are provided by the Cloud Provider. To give an example, we have a Google App engine where you can create your own applications. Here you are using the Platform. Similarly, PaaS also provides a platform for creating your own applications.

IaaS(Infrastructure as a Service)

  IaaS provides the whole infrastructure to you so that you can create your own application. The whole underlying infrastructure is provided to you so that you can choose whatever Operating system you want to use, technologies you want to use, and application you want to build.

Source: Author

With this, I think you can understand better. Here you can see in SaaS only Data is being managed by you. Everything else like applications, runtime, middleware, operating system, virtualization, servers, storage, and networking are being managed by the vendor. Coming to Paas, Data and applications are managed by you and everything else is managed by the vendor. Now finally for IaaS, Data, applications, runtime, middleware, operating system are managed by you and basic things like virtualization, servers, storage, and networking are managed by the vendor.

Deployment Models in Cloud Computing

Cloud deployment models are divided based on the security control, who has access to data, and also based on whether the resources are shared or not. It represents the particular category of the cloud environment.

Basically, there are three main types of deployment models.

1. Public Cloud

2. private Cloud

3. Hybrid Cloud

Let us understand one by one.

Public Cloud: As the name suggests it is available to the general public over the internet. Here provider makes all resources and makes them available publicly. It is very easy and inexpensive because all the hardware, application, and bandwidth costs are covered by the provider. Resources are also not being wasted because you will pay for what you use.

Private Cloud: Here actually you can create your own applications and you are protected by a firewall so that security issues are being minimized.

For example, HP data centers, Ubuntu, Elastra-private cloud, Microsoft.

Hybrid Cloud: Hybrid cloud is the combination of both private cloud and public cloud. You can build your own application and access it. And whenever you feel like there is traffic you can move it to the public cloud and use it.

The top 5 Hybrid Cloud Providers are Amazon, Microsoft, Google, Cisco, Netapp.

On-Premise vs Cloud Computing

To understand it first, we will see what is on-premise architecture.

On-Premise Approach

This is like the traditional approach. You will write your own piece of code and you will own your own server. As a company, employees are maintaining them and making sure the software is deployed properly. Remaining everything like monitoring these applications, having servers, maintaining them all those you should take care of. There is a high up-front cost and maintenance cost. Here owner manages security.  When it comes to on-premise, you have more control.

Cloud Computing Approach

It is a huge space available online with a stack of servers that are orchestrated to provide you with various services like databases, storage, computation, security, and many more. There is a cheaper up-front cost. When it comes to security, it is vendor dependence. Owners are expected to give up control. Here you have less control over it. You have to be a little bit dependent on your vendor.

In this article, we have learned the basics of Cloud Computing like what exactly cloud computing means, how this actually helps us, different service models, different Deployment models, and comparing On-Premise and Cloud computing.

Hope you guys found it useful.

The media shown in this article is not owned by Analytics Vidhya and are used at the Author’s discretion.


7 Hot Cloud Computing Innovations

that worldwide revenue from public IT cloud services, which exceeded $16 billion in 2009, will grow to nearly $56 billion in 2014.

Despite a dismal economy, analysts continue to be bullish on cloud computing. A few recent studies project continued momentum for cloud computing, which according to IDC, should soon “reach 12% of the size of traditional IT product spending, [while representing] over 25% of the net-new growth in traditional IT products.”that worldwide revenue from public IT cloud services, which exceeded $16 billion in 2009, will grow to nearly $56 billion in 2014.

According to AMI-Partners’ World Wide Cloud Services Study, adoption among SMBs will be even more impressive. SMBs worldwide will spend more than $95 billion on cloud-related products and services (both public and private) by 2014. SMBs are already rapidly moving to the cloud, with CRM, payroll, accounting/financials and web-conferencing applications leading the way.

While there is no doubt that cloud computing will continue to grow, can we safely say that it is a mature technology?

One sign of maturity for newly adopted technologies is an outgrowth of innovation. By this I don’t mean that technologies require constant innovation in order to be considered mature; rather, once a technology has passed a certain tipping point, innovators begin tinkering at the margins.

Here are seven of those innovations:

Desktops and notebooks have already lost their standing as the go-to computing devices for many knowledge workers. Smartphone adoption outpaces even the cloud, while the iPad is already gaining traction in such verticals as hospitality and education.

“People hate carrying their laptops around with them. If you can access your desktop from the cloud via a phone or tablet, that’s a lot less hassle for people who are always on the go. Plus, there are no security limitations in the device being stolen or misplaced, because none of the information from the PC is saved locally on the phone,” said Daniel Barreto, GM, Mobile Cloud Business Unit at Wyse Technology, a provider of “cloud client computing” solutions.

Wyse intends to banish laptops from the mobile workforce through its PocketCloud service. PocketCloud is a remote desktop service that essentially delivers everything from your PC to your smartphone or tablet. By storing everything in the cloud, the constrained device gets a major boost (although input and bandwidth limitation still pose problems). Customers for PocketCloud include EMC and CA.

Iveda Solutions is leveraging the cloud to provide streaming mobile video surveillance at a price point well below the typical closed-circuit systems.

“Using cloud computing is a better way to consolidate your surveillance video, especially if it is coming from disparate geographic locations or facilities. Instead of running multiple DVRs and NVRs, the video is centrally hosted at our Tier-4 data center and the user accesses it using a Web browser,” said Jason Benedict, Marketing Manager, Iveda Solutions. Video can then be accessed by any Internet-enabled device, including smartphones and in-vehicle thin clients.

Iveda Solutions has deployed its system on school busses for campus safety, in parks in Arizona to combat graffiti and illegal dumping, and at golf courses to combat vandalism.

Whether you play video games on a PC, on Facebook or on consoles, today’s gaming experience is a thoroughly online one. Heck, I use my Wii more often to stream Netflix movies than to play games.

According to the NPD Group, the sales of games that are digitally downloaded topped traditional physical sales for the first time this past year. Consumers in the U.S. downloaded 11.2 million games from January through June 2010, versus 8.2 million physical units sold.

As more games leverage the Internet, the appeal of Massively Multiplayer Online (MMO) games grows. According to Strategy Analytics, revenues for MMORPG (massively multiplayer online role-playing games) topped $5 billion worldwide in 2009, up 17 percent from 2008. The research firm predicts that revenues will reach $8 billion in 2014.

If a few of MMO games’ limitations are addressed, those numbers could grow even more. “MMO games are expensive to build and tend to be based on decades-old technology,” said Mark Richardson, CEO of Ashima Arts.

According to Richardson, the only thing “massive” about current MMOs is the audience. The typical world gamers inhabit is static and not terribly large. Moreover, the audiences themselves are only massive using yesterday’s measurements.

“The way that the underlying programs are parallelized from server to server means that the games can’t hold more than 10,000 people,” he said. The games address this through “sharding,” which means that the gaming audience is segmented. You only access a single, regional shard.

Instead of a “World of Warcraft” world, there are hundreds of separate worlds. These worlds tend also to be non-interactive – a player cannot really use a well, cut down a tree, or enter certain buildings because these are all simply stage props.

To conquer the limitations of virtual game worlds, Ashima Arts is building an MMO OS based on virtualization and cloud concepts. The Mirage OS turns each player interaction into a transaction. The OS has complete freedom to run transactions on any of its cloud servers.

“This creates tremendous opportunities for game designers to create virtual worlds, which are actually worlds, not limited approximations,” Richardson said. Moreover, these games will allow you to interact, potentially, with millions of players worldwide, rather than being restricted to a regional or skill-level shard.

Even if you have never played or intend to play an MMO game, the implications for training, education and conferencing are obvious.

The cloud was originally intended to make it easier to use software over the Internet without loading client software. Of course, many organizations fret over exposing sensitive data assets to the Internet. As a result, many organizations have a few cloud applications running at the periphery of their operations, with the mission-critical ones kept in house.

Many of those on-premise applications benefit from features such as collaboration and remote access, which has led to hybrid clouds. “Hybrid clouds have, in many instances, become the information gateway to the public cloud, while allowing users to preserve the legacy core,” said Chris Weitz, Director of Deloitte Consulting.

Until very recently, these hybrid clouds were public-cloud/roll-your-own amalgams. However, any time vendors see potential customers laboring to create solutions like hybrid clouds, it’s only a matter of time until they begin offering products or services to displace the homegrown solutions.

Now, “cloud storage gateway” or “cloud storage on-ramp” devices are being deployed in data centers to enable the use of cloud storage as though it were traditional storage. These devices provide the workflow and processes expected of traditional storage (volume provisioning, LUN masking, snapshots), and incorporate a number of technologies to overcome cloud-centric challenges. Content-aware tiering with integrated storage ensures high-performance access to working-set data, while less frequently used data can be tiered to the cloud.

When scientists use the cloud for their studies, they often run up against computing limitations, even in large cloud deployments, rather quickly. “In science, there is an explosion of data in areas such as bio-informatics,” said Dr. Kate Keahey, a scientist at Argonne National Laboratory and a fellow of the Computation Institute at the University of Chicago. “We have more data than we know what to do with, and we’re not able to process that data effectively in traditional infrastructures.”

As a result, researchers have been investigating ways to link their cloud deployments with other clouds. Called “sky computing,” this model takes resources from multiple cloud providers and pools them to create large-scale, distributed infrastructures.

Often, the in-house cloud is linked with resources in public clouds, such as AWS. Sky-computing clouds have emerged at the University of Chicago, Purdue University and the University of Texas at Austin, to name only a few.

Grid5000 in France and FutureGrid in the U.S. are two early sky-computing deployments getting a lot of attention in academic circles. The Ocean Observatories Initiative (OOI), meanwhile, has received $100 million in U.S. stimulus money to deploy sensors and monitoring equipment throughout the world’s oceans. Obviously, handling the data from those sensors will require massive computing infrastructures.

Basically, this is a matter of cloud computing getting back to its roots. Several years ago “cloud computing” and “grid computing” were used almost interchangeably. Grids were more typically focused on applications where huge amounts of data where being stored and processed, while clouds were centered on cost reduction and infrastructure flexibility.

Now, sky computing essentially marries the two, with one critical distinction. “With a grid, you’re still in someone else’s domain,” Keahey said. “You must deal with firewalls and with things being different on different infrastructures. With sky computing, on the other hand, you are able to create a single domain on top of all of these resources.”

How does the cloud fit into all of this? Simple: the cloud is protecting companies against social-media flops – and successes.

In the past, if an expected threshold of users failed to materialize, yet you had already purchased the infrastructure for a large campaign, you were in trouble. Similarly, if a campaign exceeded your projections, you risked alienating potential customers as applications slowed when capacity limits were reached.

“Organizations mistakenly believe that big, dedicated enterprise applications are the difficult ones to plan for,” said Adrian Ludwig, VP of Marketing for cloud computing provider Joyent. “The truth is those are fairly easy to design. The hardware is dedicated to the application, the computing environment is a controlled one, and the organization knows how many end users it will have.”

“Even cloud computing is stressed under that kind of varying demand,” Ludwig said.

Joyent tackles this problem by virtualizing the layer between the hypervisor and the application. Just as virtualization separated the hardware assets from the OS and app, Joyent’s “SmartOS” frees applications from hypervisors and dedicated OSes. Thus, each application running on one of the ported platforms is just another process that gets managed by the SmartOS.

Apologies to those who suggested including these cloud innovations: collaboration clouds, cloud mashups, HPC, the “appification” of software and the emergence of cloud operating systems. Maybe next time. Well, not next time. My next cloud computing story, slated for early to mid-October, will look at how the cloud is changing business and work. If you have ideas for that story, contact me at [email protected] or look for my HARO query in a week or two.

Cloud Computing Data Storage: Buying Guide

Although many enterprises are moving applications and other processes to the cloud, data backups and storage are still often local. On-site storage seem easier to control and secure, yet it’s costly to administer and leaves organizations vulnerable should a natural disaster hit.

Moreover, bottlenecks often form at the local level, especially when integrating remote applications and assets with those managed on-site.

Most organizations with a cloud presence have an eye toward using the cloud for data storage. But with a variety of cloud storage vendors to choose from, it’s important to ask the following questions to assure valuable digital assets are managed efficiently and effectively:

If your business is looking to the cloud as a primary location for file storage and backups, availability is key. For Nhan Nguyen, Chief Scientist and CTO at CIC, being able to access files quickly and at any time is the cornerstone of providing customers with the quality of service they expect.

CIC provides electronic signature solutions for the time-sensitive financial services industry. So its technologists needed to know that their cloud storage solution would maintain the same level of availability and speed as an on-site option.

Nguyen explained, “We support a very high number of concurrent users. Maintaining very high uptime and guaranteed document load performance of less than three seconds are our main goals.”

CIC needed a solution that would meet these goals and satisfy customer SLAs. After some research, they decided to deploy Gluster’s File System (GlusterFS), which complemented their existing cloud technology infrastructure.

Using GlusterFS, CIC was able to pool, aggregate, and virtualize their existing Amazon Web Services Elastic Block Storage (EBS). By utilizing both synchronous and asynchronous replication, files are retrieved quickly–even surpassing customer expectations.

For Stanley Kania, CEO of Software Link, a hosted ERP provider, looking to the cloud was a way to meet expanding storage needs.

“Using local disc storage on servers became unmanageable and unsustainable, especially as we began to virtualize our infrastructure. At the same time, we need to store more and more data,” Kania said. With over 2,000 customers and growing, Kania and his team found a solution in Coraid.

Coraid’s EtherDrive platform enabled faster performance and allowed for adding new storage as-needed, scaling to meet Software Link’s growing storage needs.

Software Link is now able to host far more applications and has seen an increase in spindle speed and high demand IL. When they need additional storage, additional EtherDrive shelves can be configured and deployed in a matter of minutes.

For both Software Link and CIC, integrating a storage solution with existing applications and infrastructures was a key requirement. Both companies were looking for complementary solutions that would accommodate existing workflows.

“The solution we were looking for had to fit with current applications,” says Kania, whose business primarily provides hosted ERP solutions from Sage and SMB solutions from QuickBooks.

For Nyguen and his staff at CIC, a streamlined transition from their preexisting storage to the cloud was a main requirement. The staff at CIC had already selected the RightScale Cloud Management Platform as the foundation for their operations, and had decided on Amazon’s EBS.

As Nyguen says, “It was crucial to select a cloud storage solution that required no change to our existing infrastructure.”

What Is Edge Computing For Cloud And Iot?

Edge computing is a term that’s getting thrown around more and more these days, though often unaccompanied by an easy-to-digest definition of what exactly Edge Computing means. Usually, explanations are either too aggressively full of technical jargon for a layman to decipher or too vague to provide a meaningful, clearcut understanding of what Edge Computing really is, why it’s useful, and why so many more organizations are turning to it as a way of handling emerging IT obstacles and improving the power of other technologies, namely Cloud Computing and IoT. 

What is Edge Computing?

Cloud Computing and IoT Explained

Before we can illustrate the mechanics of Edge Computing, it’s important to first understand how cloud computing — a completely different technology and term that is in no way interchangeable with Edge Computing — works and the current obstacles it faces.

Cloud computing delivers computing power over the Internet by connecting users to powerful servers maintained and secured by a third-party. This lets users leverage the computing power of those servers to process data for them.

Cloud computing services like the Microsoft Azure cloud, Amazon Web Services, the Google Cloud Platform and the IBM Cloud allow users to avoid the substantial upfront costs that come with creating a heavy-duty local server setup as well as the responsibility of maintaining and securing that server. This affords people and companies a “pay-as-you-go model” option for their information processing needs, with costs varying with use.

The Internet of Things, or IoT is a related concept that involves the networking of everyday devices over the Internet via cloud computing. This allows non-computer devices to speak to each other, gather data, and be controlled remotely without being directly connected to each other.

Take, for example, a home security camera. The camera can send its information to the cloud via the home Wi-Fi network, while the user can access the data via their phone while at work. Neither device needs to be directly connected to one another, only the internet.

This way the user can send and receive information through a server that both devices connect to via their internet connection.

This same model can be used in all sorts of ways; everything from smart home technology like smart lights, smart ACs, and other appliances, to industrial safety mechanisms like heat and pressure sensors can use IoT to increase automation and create actionable data.

By allowing devices to connect with one another wirelessly, IoT helps reduce human workload and improve overall efficiency for both consumers and producers.

Obstacles Facing Cloud Computing and IoT

While IOT continues to grow, with applications being used in nearly every industry, the burden on data centers used for cloud computing is increasing exponentially. The demand for computational resources is beginning to exceed the supply of said resources, reducing overall availability.

When cloud computing first emerged, the only devices connecting to it were client computers, but, as IoT has exploded, the amount of data that needs to be processed and analyzed has reduced the amount of computational power available at any one moment. This slows data processing speeds and increases latency, bringing down performance on the network. 

This Is Where Edge Computing Comes In

Now that you understand cloud computing, IoT, and the obstacles that face Both technologies, the concept of Edge Computing should be easy to understand.

In simple terms, edge computing places more of the workload locally where the data is first collected, rather than on the cloud itself. As its name suggests, Edge Computing aims to place more of the burden of data processing closer to the source of the data (i.e. at the “edge” of the network).

This means, for example, finding ways to do some of the work that would be done at the data center on the local device before sending it off, reducing both processing time (latency) as well as bandwidth. In the context of a security camera, this would mean developing software that discriminates against data based on certain priorities, picking and choosing which data to send to the cloud for further processing.

This way, the data center need only process perhaps 45 minutes or so of important data, rather than a full 24 hours of video. This lessens the burden on data centers, reduces the amount of information that needs to travel between the devices, increases the overall efficiency of the network. 

Speed and processing power have become especially important with the rise of more demanding technologies. Earlier uses of IoT in cloud computing required smaller amounts of data to be processed and were generally less time-sensitive.

A self-driving car requires cloud computing to be able to receive updates, send information, and communicate with other servers over the internet. It does not, however, have the luxury of limiting its processing power according to the availability of that connection.

This combination of increased local workload and sustained cloud connectivity is a prime example of edge computing and how similar system architecture can improve the efficiency of all the technologies involved.

How Cloud Computing Is Reinventing Supply Chain Management

Regardless of the industry, supply chain management is vital for business growth. In a bid to remain relevant in a competitive business landscape, companies seek to enhance their supply chain management processes through digital technology.

Cloud computing is a quickly evolving technology that organizations adopt to transform and enhance supply chain efficiency. With more businesses scrambling to adapt, the global market size of SaaS supply chain management solutions will hit $5.62 billion by 2025.

This trend is not haphazard. Typically, cloud computing facilitates a large-scale transformation of traditional SCM models. Here are some of the ways cloud solutions are reinventing supply chain management.

1. Track and Locate Products at Any Stage of the Supply Chain

Inventory management is one of the chronic traditional challenges that plague managers. Ideally, supply chain departments need reliable visibility and control.

When cloud-based solutions are coupled with tools like GPS, Beacons, Bluetooth trackers, RFID, and Wi-Fi sensors, supply chain managers can track inventory –regardless of the shipping stage. Having the capability to track and locate products can enhance supply chain efficiency. Most importantly, it makes it easier to gather more data about delays and bottlenecks.

Cloud-connected sensors can log your inventory automatically, thus cutting costs related to supply chain management. As the business landscape becomes more competitive, tracking products on transit can be instrumental in providing superior client service.

2. Enhanced Maintenance of Critical Supply Chain Equipment

This eliminates the inconveniences associated with sudden equipment breakdown. In addition, intelligent cloud solutions can provide accurate predictions regarding equipment malfunction, servicing, and repairs.

3. Leverage Big Data to Analyze Efficiency

Cloud-based SCM solutions come with unprecedented processing power, thus making them suitable for analyzing massive data sets. This capability has enabled managers to create complex simulations addressing supply chain optimization, inventory needs, and seasonal issues in the supply chain.

4. Increased IT Security for Better Business Continuity

Cloud technology has evolved to become a reliable and secure tool for business operations. This aspect enhances business continuity and lowers business disruptions often associated with onsite installations.

Virtualization and redundancy are at the core of cloud computing technology, thanks to a vast pool of resources. As such, these systems can quickly recover from technical glitches or other unexpected disasters and redeploy data.

Advanced security solutions are securing cloud technology without causing any system lags. Unlike traditional onsite SCM systems, cloud-based supply chain systems have minimal downtime, thus enhancing business profitability.

5. Seamless Access to Supply Chain Management Systems

Cloud computing has eliminated physical boundaries that pose barriers in supply chain management. Today, managers can access cloud-based supply systems from anywhere in the world. And with increasing globalization, seamless access is vital to business success. These supply chain systems support multiple offices across the globe and facilitate real-time access to essential data.

6. Cost Optimization

The introduction of cloud computing in supply management has led to a drastic reduction in operational costs. Cloud computing solutions can minimize the number of staff required to carry out tasks throughout the supply chain.

For instance, cloud applications can generate automatic reports of incoming inventory at a warehouse, trigger shipments, and book the inventory on arrival. This function minimizes the human workforce required for order processing tasks; thus, you can commit more workers towards other vital roles in the supply chain.

7. Demand Forecasts and Adjusting to Market Volatilities

The C-suite managers in the manufacturing industry are conversant with the detrimental impacts of market volatility. After going through the previous economic collapse, managers are always conscious of resource deployment amid an economic collapse.

8. Improved Speed and Scalability

9. Enhanced Integration of Different Business Platforms

Over the years, the demand for supply chain management systems has skyrocketed. To meet the demand, providers have created numerous platforms. However, most of the existing platforms are not compatible, thus limiting integration with each other.

But with cloud computing technology, you can integrate different platforms through standard protocols. This capability has nullified preexisting digital boundaries that have been the missing link for instant communication and seamless order fulfillment. For instance, Service Oriented Architecture enables various platforms to share information through web services.


While it’s still in its infancy stages, cloud computing technology is on track to become the future of supply chain management. By integrating this tech into SCM, organizations can realize accurate tracking, better security, and lower business expenses.

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