In the last decade, cloud data platforms have been steadily growing in popularity. It’s also one of the most lucrative fields in tech, with a market size of $2.67 billion in 2021.
This is expected to grow to $14.84 billion by 2028, with a high compound annual growth rate (CAGR) of 28.2%. So is investing in cloud data platforms a mandatory move for businesses if they want growth? Or is it simply a bandwagon that will be replaced by another technology sometime soon?
In this article, we’ll be delving into seven reasons your business needs to use a cloud data platform in 2023.
1. Cloud Data Platforms Make Managing Data Easier
A cloud data platform is a data center based on the cloud, and it involves a server and data storage.
The first and most basic reason why cloud data platforms have become all the rage is due to their ability to leverage cloud-based infrastructure to reduce much of the standard labor required to run information technology.
Essentially, enterprises can migrate their entire data ecosystem from traditional data centers and warehouses to a cloud data platform, which allows them to access it anywhere at any time.
2. Cloud Data Platforms Allow Users To Enjoy Reduced Costs
The initial investment cost might be throwing off enterprise owners from looking into cloud data platforms. But besides the initial investment, utilizing a cloud data platform is a much more efficient way to run a business.
In fact, according to database user statistics, 90% are interested in using open-source databases mostly to reduce costs. Furthermore, some see up to 80% of their costs saved. Companies can then focus their finances on improving other business elements and see better growth in the long run.
3. Use Cloud Data Platforms To Heighten Flexibility
The field of data and analytics is quickly evolving. Thankfully, cloud data platforms are able to adapt quickly and easily, allowing them to benefit from much more flexible data exchange. Of course, having remote access is another benefit that leads to flexibility and productivity in the workplace.
You won’t have to worry about checking up on business operations when you’re away – as long as your data is stored in the cloud, you and your employees can conveniently manage most aspects of your business.
4. Cloud Data Platforms Allows Businesses To Benefit From Scalability
With hosting your own data locally, there is a lot of capital and office space used. And every time your operation grows, expanding your infrastructure adds to the hassle. But unlike traditional local storage, investing in a data platform is a much more scalable option.
By taking advantage of cloud technologies that are readily built-in remote data centers, enterprises need only negotiate with their third-party host to upgrade or downgrade their storage bandwidth. It’s also a great way to manage costs more efficiently.
5. Cloud Data Platforms Comes With Security Features
In 2021, there were more than 4,100 data breaches that were publicly exposed. Estimates have shown that the figures for 2022 are expected to surpass this by as much as 5%. Data breaches and leaks are among the biggest worries of businesses worldwide, and also one of the biggest catalysts for them to make the switch to cloud data platforms.
Contrary to what people fear, most platform-as-a-service (PaaS) companies have the power to detect and eliminate cybersecurity threats better than what most businesses are capable of.
6. Cloud Data Platforms Ensures Businesses With Automatic Backup
In line with security features, most cloud-based services are equipped with automatic maintenance of servers, network management, and software updates. This frees up a lot of time and energy for business owners, especially since you won’t have to worry about manually updating business and customer information every three to four years.
Moreover, untoward events like pandemics, floods, office fires, tornadoes, or crashed appliances won’t do much damage to your enterprise’s data management system.
7. Cloud Data Platforms Encourage Collaboration
Finally, cloud data platforms encourage collaboration and transparency. Because teams will have much more access to data whether it be for sales, strategy, or general management, it’s easier to keep everyone up to date with how the business is doing.
Subsequently, employees will have a better understanding of how processes work and can provide their own input on how to improve these further and how they can better contribute to the company’s growth.
Afterword
In this article, we’ve discussed seven of the many reasons why businesses have been migrating to cloud data platforms. We are likely to see this become the norm among different industries moving forward. For more helpful articles, check out the rest of our blog here at Increditools.