Will Cloud Computing Kill The Server Market?

It is being widely argued that with more and more companies preferring to store their valuable data in clouds, the demand for traditional servers will gradually go down. However, this statement is not entirely true because not all companies are in favor of shifting all their data to the cloud. There are some businesses which have chosen to move only part of their set-up to clouds instead of maintaining their individual data centers. This is found to be a cost-effective option for businesses.

Cloud hosting provider IndiaWhy are clouds being preferred by businesses?

There are some studies which suggest that the hybrid cloud which offers a mix of private and public clouds may be the chosen option for most companies in the future. Majority of middle-sized businesses have started to use the hybrid cloud structure already. With cloud hosting and storage virtualization, there has been a change in the manner in which data centers are bought and deployed. Today, the end-user companies are keen to migrate from separate servers connected to the storage area networks or SANs to the cloud architecture. Businesses around the globe are steadily shifting their data centers to delegating the responsibilities for emails and application to cloud hosting providers. This will definitely save a huge amount of energy because it is environment-friendly; the energy demands for running data centers are likely to come down by nearly 87%, according to reports.

Another significant advantage which cloud computing has heralded is the dramatic reduction in hardware needed to run a nation’s IT infrastructure. The numbers of email servers could be drastically reduced; likewise, the numbers of servers needed for productivity applications would also come down significantly. Hardware vendors will therefore be forced to contend with more sophisticated buyers. They will now attempt to sell millions of servers to the big buyers and since there are many cloud providers which will not design their own servers, they will start ordering from clients like Google which are designing their own servers. This is not to suggest that hardware will cease to exist or that cloud computing will completely kill the server market.

Cloud Vs Servers:

On-site hardware is not only costly, but it may also let your business down; this is why we find more and more small businesses choosing cloud computing over traditional servers. Cloud hosting is actually ideally suited for the small sized businesses because it allows them to be flexible and save a lot of money on IT expenses. Cloud hosting can improve productivity and bring in higher revenues. It guarantees scalability which means that you are free to expand your business with additional resources from the cloud as and when the requirements surface. In case of traditional hosting, you either have to choose a shared server or dedicated server; the latter will offer you a lot of flexibility and scalability but for a heavy price.

Moreover, migrating to the cloud lets users access data remotely from tablets or smartphones. It offers a security cover which smaller businesses may lack. When you replace the traditional server with the cloud server, you ensure that there is another entity responsible for safeguarding your data security.

Will cloud hosting succeed in destroying the market for traditional servers?

  • While cloud hosting is gaining popularity by the day, there will always be small-sized businesses which may be wary of moving their data and applications to the cloud. Cloud hosting is also not financially feasible for all businesses; for instance, a certain business may not find it worthwhile to spend a lot of money on cloud hosting if it cannot benefit from it. Buying a single server for your web hosting needs may often work out cheaper for smaller businesses.
  • Besides, when you do not own a dedicated IT manager but hold contracts with an IT firm, it may be unwise to complicate the situation by shifting the data to a cloud. You can always utilize free cloud hosting services like databagg without replacing your server.
  • Cloud server hosting is usually the best possible solution for businesses having remote staffs; it makes them easier to coordinate their tasks and work faster when they can all access data from different locations. It is also definitely more secure because the data is now protected by an external hosting provider.

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When you are a start-up or a company which is virtual, a cloud-based environment is preferable. But there are hundreds of smart owners of medium and small sized businesses that run applications on old servers who are not keen to migrate to the cloud. Rather, these owners are investing in newer servers. So, it is not right to suggest that cloud computing will end up killing the server market. For the already established enterprises which are reluctant to change their applications, the cloud is still very costly. At the same time, these companies are making use of come cloud-based applications because they share files on databagg and subscribe to online backup, make calls across Skype and make use of collaboration tools like Box or Google Docs. Their employees are also seen using smartphones which have mobile apps relying on cloud data that helps to enhance work productivity.

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