Cloud computing has ten documented benefits. Five come from the standard definition and they are on demand self service, broad network access, resource pooling, rapid elasticity and measured service. Five more come from migration guidance and they are cost flexibility, financial transparency, resiliency, business continuity and less hardware and staff. Weigh all ten against your own control and compliance needs.
Your leaders ask why the company should move to the cloud. You need clear reasons that come from official sources and not from hype.
This guide lists ten benefits in two groups. Items one to five describe what cloud computing is. Items six to ten describe what it does for a business.
What is Cloud Computing?
NIST defines cloud computing as a model for on demand network access to a shared pool of configurable computing resources that you provision and release with minimal management effort. See NIST SP 800-145.
What are the Five Essential Characteristics of the Cloud?
NIST names five essential characteristics and all five are benefits in daily work.
- On demand self service. You get server time or storage automatically without asking the provider for every request.
- Broad network access. Phones, laptops and workstations reach the services over the network.
- Resource pooling. Providers serve many customers from one pool in a multi tenant model.
- Rapid elasticity. You scale resources up or down quickly so capacity looks nearly unlimited.
- Measured service. Providers meter usage so you can monitor, control and report it.
What Business Benefits does Cloud Migration Bring?
Microsoft lists the motivations for a move to the cloud in its migration business case. See the cloud migration business case.
- Cost flexibility. Pay as you go billing suits short projects and proofs of concept because you own nothing when you shut them down.
- Financial transparency. Detailed billing and usage reports show leaders where the money goes.
- Resiliency. Cloud capabilities including multiregion deployments increase redundancy.
- Business continuity. Cloud capabilities support high availability and uptime guarantees.
- Less hardware and staff. Datacenter modernization reduces hardware and staffing.
How do the Ten Benefits Compare?
| Benefit | Group | Main Value |
|---|---|---|
| On demand self service | Definition | Speed |
| Broad network access | Definition | Reach |
| Resource pooling | Definition | Shared efficiency |
| Rapid elasticity | Definition | Scale |
| Measured service | Definition | Control of usage |
| Cost flexibility | Migration | Spend |
| Financial transparency | Migration | Visibility |
| Resiliency | Migration | Redundancy |
| Business continuity | Migration | Uptime |
| Less hardware and staff | Migration | Simpler operations |
What should You Weigh Against the Benefits?
Benefits come with duties. Microsoft states that you own your data and identities in every cloud model and that provider responsibility grows as you move from IaaS to SaaS.
Compare both paths in our guide to cloud vs on premises software. For storage see how cloud storage works.
Frequently Asked Questions
What are the Main Benefits of Cloud Computing?
NIST lists on demand self service, broad network access, resource pooling, rapid elasticity and measured service. Microsoft adds cost flexibility, transparency, resiliency and continuity.
Does the Cloud Reduce Costs?
It can alter how you pay. Microsoft describes a pay as you go model that suits short projects. Compare the full cost over time.
What is Rapid Elasticity?
NIST describes it as quick scaling of resources up or down so capacity looks nearly unlimited.
What is Measured Service?
NIST describes metered usage that both the provider and the customer can monitor, control and report.
Do I Still Own My Data in the Cloud?
Yes. Microsoft states that you own your data and identities in every cloud model.
Key Takeaways
- NIST names five essential cloud characteristics and every one is a benefit.
- Microsoft lists cost flexibility, transparency, resiliency and continuity as migration benefits.
- Pay as you go billing suits short projects and tests.
- Data and identities remain your duty in every model.
- Weigh the benefits against control and compliance needs.
Sources and References
This guide follows NIST and Microsoft documentation.
- NIST SP 800-145 The NIST Definition of Cloud Computing (NIST) nvlpubs.nist.gov
- Cloud Migration Business Case (Microsoft Learn) learn.microsoft.com