Top 8 Benefits of Cloud Migration

September 9, 2021

iauro Team

Contributing immensely to the global software solutions ecosystem. DevOps | Microservices | Microfrontend | DesignThinking LinkedIn

Reasons for migrating to the cloud:

Back in 1999, Blockbuster had the opportunity to buy the fledgling Netflix, which was also hit hard by the dot-com crash, for just $ 50 million. The hapless Netflix was convinced that it could be a lifeline in those troubled times, and was ready for an acquisition, but was later laughed at by the former entertainment giant. What seemed like a joke to the CEO of Blockbuster at the time was an annoying mistake for all time. Unbeknownst to the DVD rental giant, Netflix quietly stole the thunder over the next few years and became the largest video streaming service provider in the world. To date, Netflix has revenues of $ 15.8 billion with a subscriber base of over $ 150 million. Blockbuster, on the other hand, has the only franchise store that remains open in Bend, Oregon, and bills itself as a nostalgic reminder for those looking to go back in time when you had to remind yourself to rewind that tape and bring it back in time to avoid late fees.

Netflix is ​​a technology company. It was one of the first companies to visualize the potential of media streaming technology, and in 2007 it began moving from a simple DVD-by-mail service to a video-on-demand-by-subscription model.

So what makes Netflix a model for cloud migration? Just a year after introducing the concept of streaming their huge video archives online, Netflix management realized they had a huge problem. Their back end was unable to keep up with their growing subscriber base and they continued to have connectivity and streaming issues. At the time, Netflix had already signed an agreement with Microsoft to host its app on the Xbox 360 and agreed to serve customers of Blu-ray player and set-top box manufacturers.At a time when people were barely aware of the existence of the cloud, Netflix’s top management decided to move entirely to the cloud. Although there weren’t many options on the market at the time, Netflix preferred AWS to other public cloud providers because of its breadth of features, the scalability it provided, and the wide variety of APIs that were included in its offering. This proved to be a prophetic decision, as between December 2007 and December 2015, the number of hours of streaming content broadcast on Netflix increased 1,000 times and the number of people subscribing to the service increased eight times. at the end of the cloud migration process than at the beginning.

Today’s Netflix, a television and film studio that rivals some of Hollywood’s biggest names, would never have existed if they hadn’t been thinking about moving to the cloud. By simply moving to the cloud, not only were they able to fix the database corruption, but they also increased their revenue from 1.36 billion to about 15.8 billion in just ten years. Their subscriber base has also grown from less than 22 million in 2011 to nearly 150 million in 2019. Cloud infrastructure has been able to meet this growing demand. It also proved to be an important cost-saving initiative.

What is cloud migration?

For the uninitiated, cloud migration is the process of moving mission-critical services from on-premises or co-located equipment to the cloud. If you don’t live under a rock, you would interact with the cloud when you used Zoom for an official meeting, or Google Drive to save and share content, or just Gmail or Office 365 when you wanted to send an email. Amazon Web Services, Google Cloud Platform, Microsoft Azure are some of the most famous cloud service providers. By registering with cloud service providers, companies can remotely manage their entire IT infrastructure without the security risk, inconvenience, and cost of maintaining on-premises equipment.

The need for migration to the cloud:

Regardless of the size of the company and the volume of work performed, cloud computing has become an integral part of the business because it provides cost-effectiveness, flexibility, and reliable IT resources. Rather than worrying about maintaining their own private data centers where information is stored, companies can rely on the scalability of cloud storage to create storage as needed, thereby increasing their agility and lowering their total cost of ownership. We gave Netflix an example at the beginning of the blog because regardless of the industry a company belongs to, it is always helpful to understand technology trends in the market, best practices across different industries, and then use that knowledge later. to gain a competitive edge. Cloud computing has already helped thousands of large and small companies operate around the world.
 

Top 8 Benefits of migrating to the cloud:

Elastic Scaling:

This feature is most cited by cloud and cloud service providers. Elastic scalability is a term coined to refer to the ability to automatically scale up or scale down computing or networking infrastructure based on changing application traffic patterns. With this feature, companies using cloud infrastructure can cope with sudden changes in workload due to sudden surges in user activity.

For example, streaming service providers or e-commerce marketplaces may experience spikes in their subscriber base when they launch a new episode or introduce a seasonal sale, respectively.

Here’s an example to better explain this. Black Friday sales are very popular with retailers as they help them clean up their inventory and balance sheets in a year. At the same time, they are very demanding on physical and digital infrastructure. While sales growth is welcome and online sales are gradually increasing year after year, the growing traffic will stress test websites and can cause downtime that could ultimately lead to lower sales. There is also an issue with bot traffic, which accounts for half of the traffic on Black Friday and Cyber ​​Monday and can slow website performance on these two important days. It wouldn’t be easy if they were running in a data center environment. But because they are on a cloud infrastructure that can scale quickly and load balance appropriately, they can handle spikes in workload demands without compromising their performance stability. Through internal autoscaling policies that are defined and triggered based on environment resource utilization (such as CPU, memory usage, or network traffic) or time-based settings, cloud providers help retailers manage additional workload by spinning up additional instances and scaling up as exceeding these thresholds.

Enabling the digital transformation of enterprises:

Many organizations are undergoing digital transformation to create added value from their existing businesses and assets. Businesses want to provide their end customers with the most engaging customer experience possible by leveraging systems such as AI-powered chatbots, AI/machine learning-powered customer analytics, and more. Building such services from scratch can be a huge enterprise challenge and will require a huge investment in terms of research skills and time.

Cloud providers deliver several of these innovative products and services through their Platform as a Service (PaaS) that can be used directly by the enterprise to accelerate digital transformation.

High availability and reliability.

To meet ever-growing business needs, organizations must invest time and money in scaling their IT infrastructure. Attempts to achieve this on our own proved to be costly both in time and money, along with suboptimal use of resources. Cloud computing has emerged as an alternative technology solution that helps solve this problem by increasing the processing power to execute millions of instructions per second.

The high availability of cloud services ensures that the business application or services have maximum uptime, thereby maintaining customer confidence and preventing any additional expense or loss of revenue. In a high availability solution, data is spread across multiple servers. Hence, when one server becomes unavailable, data can still be read from other servers.

Built-in redundancy:

One of the main drivers of high availability in the cloud is built-in redundancy. While system downtime cannot be completely eliminated, its impact is greatly minimized by moving to the cloud, where single points of failure can be eliminated so that even if one item, such as a server, goes down, the service remains available. This availability is achieved through 4 levels of redundancy:

  • Hardware-level redundancy (by co-locating devices or subscribing to industry leaders like AWS, Google, Microsoft, etc.),
  • Redundancy of processes (determining which processes require high availability, and which are less critical for the business),
  • Network redundancy (which includes multiple carriers so that if one carrier becomes unavailable for any reason, another carrier can take over the load and handle the traffic)
  • Geographic redundancy (in which data is replicated between two or more physically separated locations so that a natural disaster or event that affects one location does not affect the other).

Faster deployment :

Failure to respond to the changing market landscape puts businesses at a competitive disadvantage. By moving to the cloud, companies can participate in the deployment of new business infrastructure and solutions at an unprecedented pace. Cloud computing can be deployed in hours, not weeks. As companies attach great importance to faster deployments and faster time to market, and ultimately higher ROI, it is now commonplace to align the DevOps movement with cloud migration efforts.

It is also much easier to test and deploy new business applications through the cloud, using the cloud development/test environment without disruption to production. Using containers also allows development teams to move quickly and deploy software efficiently. Containerization helps decouple applications from the environment in which they operate, thus separating the concerns of developers and the IT operations team, making them more efficient. For example, from Gmail to Youtube and Google search, everything in Google runs in containers. This is also known as the Google way.

Enhanced Security:

What was once the most talked-about cloud computing flaw in several forums has now become its biggest strength. Cloud service providers work tirelessly to ensure that the cloud transition is inherently secure in order to deliver better business outcomes.

As data leaks have become more frequent, it used to be common practice to store critical / user data in the IT infrastructure in place. However, most IT leaders nowadays

believe that the cloud is just as secure, or even more secure, than on-premises infrastructure. As quoted in the Information Age article: “Nearly all of the massive data breaches we’ve seen in recent years have been associated with traditional on-premises IT.”

By moving their IT infrastructure to the cloud, enterprises can leverage the data security investments made by their cloud provider. This eliminates the need for large upfront capital expenditures on equipment and security measures for the business. To provide their customers with a robust offering, cloud service providers integrate robust multi-layered security across their IT infrastructure, thereby delivering a secure environment in the cloud. This will be a significant cost for a company that does not build IT infrastructure as part of its core business.

Remote Collaboration:

Before the COVID19 pandemic forced people to work from home, a 2019 Gartner study predicted a massive boom in collaboration tools and collaboration software – from an estimated $ 2.7 billion (£ 2.028 billion) in 2018 to about $ 4.8 billion by 2023 (£ 3.6 billion). With the onset and rapid spread of the pandemic around the world today, most organizations, regardless of whether they are small and medium-sized enterprises, have some level of experience with team collaboration tools in one way or another.

Moving to the cloud provides greater flexibility for employees as all documents are stored in a central, cloud-accessible location. This allows employees to work on the document without submitting an updated version. Regardless of their physical location, employees have access to the latest version of the document, as all changes and updates appear in real-time when working in the cloud. Through cloud collaboration, all team members have an equal opportunity to contribute and therefore increase productivity, resulting in a high level of participation.

Better cost management:

Several organizations around the world vouch for the reduced operating costs and significant IT process improvements achieved by migrating to the cloud.

For Netflix, this has proven effective enough to improve system availability, optimize costs and, in some cases, reduce latency. Source: Netflix

Another benefit of migrating to the cloud is the ability to pay for what you use, which eliminates the need to maintain expensive data centers, especially when business-critical information is hosted in the cloud. According to a Microsoft Office 365 survey, 82% of SMBs report cost savings as a result of cloud adoption, and 70% are reinvesting the money saved back into their business. Datometry’s survey, which received responses from 166 IT executives, found that 61% of companies are moving their computing to the cloud to reduce costs. Thus, the benefits of cloud computing are endless.

Conclusion:

Moving to the cloud brings many benefits to both your business and your customers. If your business requires improved scalability, increased security, lower total cost of ownership (TCO), seamless software integration, and greater access to business-critical functions, you should consider contacting a cloud migration company to help. you make a smooth transition. into the cloud. Cloud migration services offered include cloud migration services, cloud reengineering services, cloud application development services, and legacy modernization services.

0 Comments

Submit a Comment

Your email address will not be published. Required fields are marked *

Subscribe for updates