Cloud computing has disrupted countless industries, and manufacturing is certainly no exception. While manufacturers had begun to embrace digital technologies long before the pandemic erupted, its inception has accelerated the shift.
According to a 2021 IBM report, cloud computing is among the top three technologies adopted by manufacturers — 79% have either ramped up their cloud investment or fully migrated to the cloud.
It’s easy to see why manufacturers are eager to seize the many opportunities cloud migrations have to offer. They can lead to greater data security, painless expansion, hardware cost savings, and more. In this article, we outline some core reasons behind the cloud’s popularity, and various ways manufacturers can use it to get ahead.
Taking your security to the next level
Some believe the public cloud is less secure — but this assumption couldn’t be further from the truth. Studies have demonstrated that security is one of the most important aspects of a cloud service provider’s (CSP) offering.
If an e-commerce platform suffered a data breach, it may be stuck paying fines and issuing an apology, but business would go on. If a public CSP experienced a substantial breach — it could mean the end of its company.
Since security is an exceptionally high priority for CSPs, they employ more security experts than most on-premises corporate networks. Moreover, most CSPs have developers take on the responsibility of security — which typically provides greater protection against malicious intent. Many cloud-based data centers are also subject to 24/7 surveillance and consistently implement cutting-edge cybersecurity technology.
Cloud security is so robust, that Gartner predicts by 2025, 99% of cloud security failures will be the customer’s (rather than the security provider’s) fault. In essence, companies that follow best practices can achieve extremely secure environments using cloud storage solutions.
Effortless evolution with the Cloud
Technological advancements are ever-evolving — at an exponential rate. With a cloud computing solution, manufacturers don’t need to worry about keeping up. CSPs automatically upgrade and proactively maintain cloud-based software to ensure optimal performance at all times.
Manufacturers can rest assured knowing their cloud solution will evolve in lockstep with technological advancement — without having to lift a finger.
Tax savings opportunities
On-premises servers are categorized as a capital expense — meaning they are a fixed asset that requires one large upfront investment. Not only does this tie up a manufacturer’s cash flow, but it also offers fewer tax benefits.
When a company purchases a server, it cannot claim the purchase price as an operational business expense on its tax return. By contrast, cloud services are considered an operational expense because they are an ongoing monthly expense — rather than a larger one-time investment.
Organizations can claim cloud services on their tax returns to decrease taxes owed, and since there is no large hardware purchase upfront, businesses can invest their resources elsewhere.
Enhanced processing power to drive advanced analytics
Complex apps for advanced analytics functions require substantial processing capacity. However, advanced on-premises processing power is expensive — rendering it out of reach for many companies.
Manufacturers of all sizes can leverage the cloud’s robust processing capacity to run elaborate apps at a much lower cost, enabling them to unlock invaluable business insights.
Ramping up or scaling down to meet your needs
This feature is critical to businesses that ebb and flow based on seasonal changes and other factors. When business picks up, an organization can increase its data usage and pay more (typically, during busy periods, it can afford to).
When business slows down again, the company can scale back its data and pay less. Salesforce rebuilt its system to be fully backward compatible — so users don’t have to do away with applications and investments they’ve made over the years.
Cloud-powered scalability without the hassle
In the face of competitive pressure and rapidly changing market trends, cloud technology enables manufacturers to remain agile and pivot on a dime.
Adding data storage and scaling with on-premises physical infrastructure can take months and burn through tremendous expense. Cloud computing empowers manufacturers to expand existing operations, add new business units, and increase storage capacity painlessly, with little to no disruption.
Doing away with hardware replacement costs
Manufacturers need to replace on-premises hardware approximately every five years. Since many manufacturers work with enormous amounts of data, migrating it to new equipment is risky, costly, and highly time-consuming.
Every year a company gathers more data, and migrations become longer and more cumbersome with each hardware replacement. Cloud computing enables businesses to protect their data, save on hardware costs, and lessen physical storage needs.
A more sustainable solution
The cloud is a greener, more energy-efficient technology. Research shows cloud migration can slash carbon emissions by 60 million tons per year — which is equivalent to taking 22 million cars off the road.
Running a computer application in the cloud is generally more sustainable than running it on-prem; cloud computing solutions can service more businesses at once and achieve better economies of scale.
Interested in a cloud migration?
Moving to the cloud doesn’t need to be an all-or-nothing endeavor; you can begin by transferring just one system over to see whether it suits your business. Also, when choosing a provider, bear in mind: reputation matters. It would also be wise to select a financially healthy company that’s likely to remain in business in the long term.
A CSP like Salesforce checks all these boxes and more. Salesforce’s Hyperforce cloud storage solution enables manufacturers to take all of their Salesforce data — and data outside of their Salesforce stack — and store it in any public cloud of their choice. Salesforce also provides online help 12 hours a day, five days a week, and 24/7 direct phone access.
To strike up a conversation about your cloud migration journey, connect with us today!