Is It Possible for Businesses to Be 100% Cloud-Based?

Estimated reading time: 6 minutes

The world continues to be more and more connected thanks to growing and advancing technologies. We saw it firsthand when people were forced to stay at home throughout 2020 and much of 2021, resulting in video conferencing and remote working for millions.

Almost 3/4 of the workforce continues to be remotely-based in some capacity since the global need for working from home began. That ability to work from your spare room, breakfast table, or even a cabin in your backyard was made possible thanks to cloud computing.

As cloud computing is such a revelation, we’re posing the question of whether businesses can be 100% cloud-based and whether it’s safe for them to do so.

Is a Cloud-Only Business Achievable?

Businesses are moving more and more of their operations and data onto the cloud but often continue to use on-premise servers, which prevents them from going 100% cloud-based. By 2025, it’s estimated the public cloud market could be worth $800 billion.

Although it might not seem like the norm, a business can migrate all of its data and operations onto the cloud. This means there are no physical servers on-premises and all applications that a business may use for its workflow management will be SaaS (Software as a service) based.

With 100% cloud operations, companies no longer have to deal with ill-fitting software and hardware, instead, they can use the experience of a SaaS vendor to match their needs. This means companies avoid expensive software that often comes with redundant features. Instead, cloud computing delivers tailored solutions while allowing modern businesses to operate remotely, offering access to company data 24/7. 

One of the reasons why 100% cloud-only business is possible is thanks to the scalability of SaaS, security, and automation that remote servers provide. Whether your company is a one-person show or has thousands of employees around the world, a 100% cloud-based system is possible.

But, as with most things in life, there are pros, cons, and considerations to be made before taking the leap and becoming solely reliant on the cloud.

Cloud Security Isn’t Perfect

Cloud data backup and recovery is excellent and allows for the swift retrieval of information that has been accidentally deleted but it doesn’t 100% guarantee a backup if stolen. As cyber threats become more advanced, defenses must rise to the challenge and match improvements made by hackers. Even Google isn’t immune and invested $5.4 billion in cybersecurity to bolster its cloud service defenses. 

That said, cloud computing providers do a great job of protecting your data – after all, their reputation would be irreparably damaged if they didn’t. However, cybercriminals can slip through the cracks of a company’s data protection, and without a backup on a physical server, that information could be lost for good.

Any company considering migrating its entire operation onto the cloud should familiarize itself with vulnerability protection, otherwise known as ethical hacking. This is where a cybersecurity expert will mimic the actions of a hacker to highlight vulnerabilities in a company’s defenses. Many organizations using the cloud retain some office real estate for a physical server to provide data retrieval in the event of information theft.

How Can 100% Cloud Operations Help Businesses?

While security can be a hot topic, there are plenty of benefits that lure businesses to 100% cloud operation. From cost and time savings to easy access and improved reliability, it makes good business sense for many companies to switch to 100% cloud computing.

Empowering Your IT Department

No one likes to be bored in their job and that sentiment is true for IT professionals working as support in companies. IT support in a business typically deals with software installation, server set-up, and patching to improve security.

These functions are quite mundane for a skilled IT professional and moving to a completely cloud-based system allows them to become more involved in other areas of the business. For instance, helping to drive a company’s success by bringing in-house IT experts in on strategic decisions and allowing them to become business enablers.

The solutions they may be able to provide could completely change the way your company works and ensure it is keeping up with the times and, more critically, the competition.

Central Access

In a world where people can work from just about anywhere with an internet signal, companies must allow their staff that opportunity. A 100% cloud-based business permits its staff access to all of the critical information, data, and applications they need to complete their jobs. This means that nothing will be off-limits to them (depending on job role access permissions), whether they are in the office or working from home.

SaaS Apps

Choice is important and thanks to the boom of SaaS applications for businesses being developed, companies have greater cloud computing choices than ever. Instead of opting for software that often promises more than it can deliver, or includes expensive options irrelevant to many companies, SaaS apps are designed with different businesses in mind. These include G Suite, HubSpot, Canva, and Slack.

On top of this, cloud apps are often available for free or are cheaper than their archaic predecessors. Companies fully committed to operating on the cloud don’t have to worry about finding, creating, or commissioning expensive software that they may struggle to use. Instead, they can browse a catalog of free-to-use or cheaper applications and software to find what works for them.

What Are the Problems With 100% Cloud Computing?

There are certainly many upsides to cloud computing but a desire to go 100% should be tempered with caution. Companies must relinquish some control of their operations and realize that their IT professionals may not be equipped to support them. Add in some security concerns and it becomes clear that opting to go 100% cloud-based isn’t straightforward.

Vendor Lock-in

Much like a utility provider, companies are not locked into sticking with one cloud computing vendor. However, unlike changing your utilities, swapping from one cloud-based server to another can pose problems for businesses.

The difficulties in migrating from one cloud service to another are caused due to the complex differences each has from another. It can be a slow and difficult transition without the help of a cloud migration specialist to ensure your critical data is protected and there is minimal disruption to your business operations. 

Network Connectivity Dependence

The advantage of having a localized server is that you aren’t solely reliant on network connectivity to access some of your data. With 100% cloud reliance, that is not the case and your operations could come grinding to a halt with internet problems. Bandwidth issues can result in poor performance from your SaaS or PaaS (Platform as a service) software.

This downtime can extend to problems on the cloud provider’s end; typically a loss of power, low internet connectivity of their own, or maintenance at their location. These can result in a loss of business operations as your company is effectively sitting and waiting for the cloud provider to get back up and running.