The creation of cloud integration was a turning point for the eCommerce business world. By offering greater scalability and flexibility while eliminating data silos, cloud integration introduced a range of new opportunities for organizations to connect different systems efficiently. The reality of the modern business landscape is that if you do not have a cloud platform, it can be difficult to surpass your competition in the marketplace.
It was predicted by Gartner that more than 30% of technology providers would shift from “cloud-first” to “cloud-only” by the end of 2019, which is also appearing to be true. Gartner also forecast that SaaS (Software as a Service) cloud service revenue would reach approximately $143.7 billion by 2022, exceeding license-based software consumption models. Now that you know how rapidly cloud integration is evolving, you also need to understand why businesses are moving to the cloud.
Challenges in Using On-Premise:
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Avoid Capital Costs
In the on-premise model, you have to incur expenses for necessary resources such as servers, networking cables, skilled personnel, and land to house the infrastructure. This requires a significant investment, and you can end up spending more than necessary. It can also cause you to burn more cash during the growth phase because you pay not only for what you use but for the entire solution.
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Is Your Data in Danger?
Data is the new oil, and you cannot imagine losing it. Even if you take all the necessary safety measures to keep your data secure, disasters can always occur unexpectedly. Imagine an unforeseen event wiping out all your servers and causing you to lose your data. Even if you have a backup drive, it could take weeks to restore your data and normalize your operations. This is one of the common concerns associated with cloud integration. Do check out our blog on 7 myths related to cloud integration.
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Tired of Maintenance and Management?
When using the on-premise model, there is a substantial amount of effort and cost associated with maintenance and management. Many businesses face challenges managing and maintaining large infrastructure because it requires significant time and effort. Timely maintenance is necessary, and keeping everything running smoothly requires continuous attention.
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Constant Change
With an on-premise integration model, it can take significant effort and time to make even a minor change to your workflow. Contacting your integration service provider for even the smallest requirement can become a major challenge. For example, if you are using an ERP system that has received a major update and you need to update it immediately, you may have to wait for your service provider to complete the changes.
If you have not read our blog on why cloud integration is the way forward, you can read it here.
How Cloud Integration Helps Overcome the Above On-Premise Challenges
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Cost-Effective
Cloud integration is very cost-effective because you do not need to maintain your own data centers, cabling, servers, networking, storage, and associated labor. You do not have to purchase new hardware, set up new software, or build new data centers. All the required infrastructure is managed by your cloud integration service provider. You also do not have to worry about hiring additional resources or upskilling existing staff.
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Data Security
Data security is one of the most important factors when it comes to cloud integration. Unexpected problems can arise at any time, and when your data is stored in the cloud, you can access it regardless of what happens to your local machine. Data recovery in an on-premise environment can take weeks, which can significantly affect your business operations.
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Changes Are Made Easy
Your team constantly works to create a flawless workflow, but achieving perfection often requires multiple changes to the systems you use. With an on-premise integration model, the more changes you make, the more dependent you become on your service provider to implement and maintain them. With cloud integration, you can simply download a new plugin for the cloud connector and install it. This makes adding the features you need much easier.
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Self-Service
This is one of the major benefits of cloud integration because you do not have to be completely dependent on your integration provider. For example, you may already have your ERP system connected to your eCommerce platform and later decide to connect your CRM and PIM systems as well. With cloud integration, you can log in to the admin panel and connect the systems yourself with just a few clicks. You do not need to contact the provider repeatedly for every new requirement that arises as your business progresses.
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Go-to-Market
With the investment, time, and effort you save, you can focus more on your go-to-market strategy. Once you reduce infrastructure costs, you can redirect those resources toward increasing production. Higher production can lead to increased sales and revenue, helping you reach your target customers and achieve your go-to-market objectives. This allows you to shift your focus from unnecessary operational concerns to more important business priorities.
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Pay as You Go
By using cloud integration, you do not have to pay for resources you do not need. You do not have to spend money on features that do not align with your business requirements. Instead, you are charged based on the resources you utilize. In an on-premise model, you may have to pay for infrastructure and features regardless of whether you use them.
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Speed and Agility — Saves Time and Effort
Speed is a critical competitive advantage, and switching to the cloud can be significantly faster than implementing traditional infrastructure changes. You do not have to spend hours managing integration changes. Problem-solving, software installation, and uninstallation become easier with cloud integration. For example, if you have two different businesses and want to merge them into one, you can accomplish the integration much faster and more efficiently using cloud integration than with traditional methods, which may require weeks or months of application changes and recoding.
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Low Risk in Innovation
Businesses often believe that innovation is essential for success, which means experimenting with new ideas and strategies is necessary for growth. Cloud integration makes innovation easier with lower risk. You can experiment with new ideas and strategies because implementation can happen quickly and at a lower cost. In contrast, on-premise environments can make innovation more expensive because failures may require significant investments of time, money, and effort.
Conclusion
Many on-premise challenges have simpler solutions when you switch to cloud integration. At i95Dev, we offer a wide range of cloud products that can be integrated between ERP systems and eCommerce platforms. Our cloud computing experts can guide you through a smooth transition from on-premise systems to cloud integration. To learn more about our products and offerings, please contact us.
