There are plenty of reasons to turn to cloud computing. This methodology has made its mark throughout the enterprise world as users have discovered the benefits of using applications that aren't tethered to proximate data centers. The widespread use of the cloud in the supply chain is a trend on the rise - we've previously noted the technology's ability to connect disparate systems and act as an integration enabler.
In an industry as global and fast-paced as logistics, it's unsurprising to see leaders gravitating toward new technology that may lead to smoother connections between departments and organizations. Businesses are searching for any competitive advantage they can find, and those that fail to see the potential in cloud-based technology may fall behind the curve.
Cloud as the default
The cloud is a rising tech option for supply chain use, which raises an important question - how long before it becomes the automatic choice for IT departments? Logistics Management recently explained the motives driving organizations to use the cloud to host the totality of their systems and the practices making this into an effective practice.
The fact that the cloud is becoming the first choice for infrastructure hosting is natural when leaders consider the potential advantages. In fact, Logistics Management tied the recent surge in popularity to a boost in confidence. Leaders discovered that their initial fears regarding loss of data control were misguided. With this reassurance in hand, they have embraced the new capabilities open to them.
Those powerful benefits include the ability to select infrastructure with more precision. Some vendors sell features on an as-needed basis, with companies able to save money by cutting unnecessary functionality. The subscription-style payment plans for the cloud are also attractive for supply chain organizations just getting started, as they don't have to spend much money up front.
Logistics Management also noted that the way patches and upgrades are handled in the cloud has influenced companies to use the cloud as their main software deployment method. Solution vendors provide the necessary updates, allowing internal IT departments to focus their attention elsewhere.
In 2015, when the cloud was first making its presence felt as a supply chain option, Supply & Demand Chain Executive laid out many of the benefits that have built its popularity in the years since. For example, companies were eager to overcome the on-premises limitations of data use. Increasingly complex organizational structures involve employees around the world handling data on devices of their choice, all made possible through the cloud. Not only can internal employees access data more easily, so can new partners at other organizations.
The use of optimized systems specifically developed for particular industries is another of the primary benefits associated with using the cloud. Supply & Demand Chain Executive explained collaboration between organizations and their service providers has enabled internal improvements. When technology is tailored to demand and service for those systems is available and carefully tailored, operational models can improve drastically. This smooth and efficient IT deployment methodology is a drastic change from old operational styles that involved intensive on-premises hardware and software work.