6 Benefits of Cloud Computing & Real Life Examples in 2024

90% of business leaders believe cloud computing is crucial for market competitiveness, yet many keep their AI or machine learning setups in-house.¹ This article provides the benefits of cloud computing and some real-life examples by companies that have seen transformative results from cloud partnerships. These success stories underscore the cloud’s role in enabling businesses to swiftly adapt and harness advanced technologies for growth and improved service delivery.

What is cloud computing?

Cloud computing is a service model that provides access to computing resources, including GPUs, over the Internet. Essentially, cloud computing provides access to computing resources without requiring the user to own and maintain physical hardware and data centers. Users can rent access to GPUs provided by cloud computing services for their computational needs, benefiting from the ability to scale their usage up or down as required and only pay for what they use.

​​If you are looking for a cloud GPU, identify the most cost-effective cloud GPU.

If you prefer a specific model (e.g., A100), identify the GPU cloud providers offering it.

6 benefits of cloud computing with case studies from different industries

1. Enhanced operational efficiency

Cloud computing streamlines operations by providing scalable resources that can be adjusted based on demand. This flexibility ensures that businesses can efficiently manage workloads, improve performance, and reduce downtime.

UBS and Microsoft Azure

UBS’s expansion of its cloud partnership with Microsoft Azure aims to run more than 50% of its applications in the cloud, highlighting the cloud’s role in driving digital transformation within the financial services industry.² This partnership facilitates innovative product and service delivery, empowers employees, and supports sustainability goals. By leveraging Azure, UBS enhances its operational efficiencies, compliance, and security, demonstrating the cloud’s capability to meet stringent regulatory requirements while fostering innovation​.

2. Innovation and personalization

Cloud technologies, especially AI and ML, empower businesses to innovate and personalize their offerings. This capability is crucial for companies looking to differentiate themselves in competitive markets by providing tailored experiences to their customers.

Spotify & Google Cloud

Spotify and Google Cloud announced the expansion of their strategic partnership, building on their collaboration since 2016, to leverage Google Cloud’s AI, ML, and data analytics technologies to enhance Spotify’s platform for its 500+ million monthly active users.³ This new phase focuses on employing large language models (LLMs) for content discovery, personalized recommendations, especially for spoken content like podcasts and audiobooks, and ensuring a safer listening experience by identifying potentially harmful content.

Spotify aims to augment its homegrown ML Platform with Google Cloud’s AI tools to refine its personalized recommendation engine and maintain its commitment to providing unique listening experiences.

3. Sustainability

The shift towards cloud computing supports sustainability goals by reducing the environmental impact of digital operations. Cloud providers often utilize green technologies and practices, helping businesses lower their carbon footprint.

HSBC

HSBC and Google Cloud’s partnership aims to enhance climate tech financing, fostering innovations that reduce carbon emissions and promote sustainability.⁴ This collaboration will see HSBC offering venture debt financing to companies within the program, aligning with its goal to deploy $1bn in climate tech finance and facilitating connections within its customer base. The initiative underscores the pivotal role of cloud computing and strategic financing in accelerating the development and deployment of essential climate technologies on a global scale.

4.No maintenance effort

One of the key benefits of cloud computing is the significant reduction in maintenance efforts required from businesses. Cloud based services take on the responsibility of managing the underlying infrastructure, including hardware and software updates, security patches, and system upgrades. This shift of responsibility means that businesses can focus more on core activities and innovation rather than being bogged down by the continuous need for IT maintenance.

ExxonMobil

ExxonMobil’s partnership with Microsoft exemplifies the role of cloud computing in minimizing maintenance efforts.⁵ By leveraging Microsoft Azure and other technologies, ExxonMobil streamlined its operations in the Permian Basin, reducing the need for traditional IT infrastructure maintenance. This strategic use of cloud computing enables real-time data analysis and operational efficiency, demonstrating how digital technologies can lessen the maintenance burden and enhance focus on core business activities.

5. Support of remote work

Cloud services offer employees the flexibility to access work-related files and applications from any location, at any time, provided they have an internet connection. This flexibility supports a distributed workforce model, enabling businesses to tap into talent pools beyond geographical constraints.

Vodafone

The Vodafone and Microsoft partnership notably emphasizes cloud transformation, with Vodafone planning to modernize its data centers on Microsoft Azure.⁶ This strategic move is aimed at enhancing Vodafone’s responsiveness to customers, streamlining and reducing the operational costs of its IT estate, and improving energy efficiency. By transitioning to virtual data centers across Europe, Vodafone seeks to simplify its IT operations while aligning with its sustainability goals. This collaboration marks a significant step towards leveraging cloud technology to foster innovation, efficiency, and growth in Vodafone’s service offerings.

6. Reduced risk of data loss

While no system can be 100% immune to data loss, cloud computing significantly reduces this risk through robust backup and disaster recovery solutions. Cloud providers typically store data across multiple redundant sites, ensuring that in the event of a hardware failure, natural disaster, or cyber attack, data can be quickly restored from another location.

Deutsche Börse Group

Deutsche Börse Group and Google Cloud have embarked on a strategic 10-year partnership aimed at revolutionizing Deutsche Börse’s cloud adoption and enhancing its financial market operations.⁷ Google Cloud is set to become Deutsche Börse Group’s primary cloud provider, underscoring a commitment to innovation and technological advancement within the financial services sector. The partnership will also explore the development of an institutional-grade digital asset ecosystem and employ a data mesh for advanced data use cases, all while emphasizing cybersecurity and regulatory compliance.

7. No need to think about storage space

One significant advantage of cloud computing is the elimination of concerns regarding storage space. With cloud storage, businesses and individuals can access virtually unlimited storage capacity, scaling up or down as needed without the upfront cost of physical hardware.

Why consider buying cloud computing services?

There are crucial factors in choosing to buy cloud computing services such as your owned dataset, budget, and research type.

1.Dataset size

1.1.Large dataset

• Cloud advantage: Cloud platforms provide scalable storage and computing resources that can easily handle large datasets. The ability to scale resources up or down means you can adjust to the dataset’s demands without overcommitting financially or physically. This scalability is critical for processing, analyzing, and storing large volumes of data efficiently.

1.2.Small dataset

• Cloud advantage: For small datasets, the cloud still offers benefits in terms of cost and flexibility. You can use smaller, less expensive resource allocations and still have the option to scale if your data grows or your computational needs change. Plus, you don’t have to invest in hardware that might be underutilized, ensuring you pay only for what you need.

2.Budget for infrastructure

2.1. Large budget

• Cloud advantage: A large budget allows for leveraging the cloud’s full potential, including access to cutting-edge technologies and high-end compute instances such as GPUs and TPUs for intensive computing tasks. You can experiment with different architectures and solutions without the lead time and costs associated with procuring and setting up physical hardware. Additionally, the cloud offers advanced services and tools that can accelerate development and deployment, maximizing the impact of a large budget.

2.2. Small budget

• Cloud advantage: Cloud computing is particularly beneficial for those with smaller budgets. Cloud service providers offer pay-as-you-go models, which minimizes upfront costs, making it accessible to start projects with limited financial resources. Cloud services can be tailored to fit tight budgets while still providing access to substantial computing resources and a wide range of tools and services that would otherwise be prohibitive due to the high cost of self-hosting.

3.Machine learning project type

3.1. Research in Machine Learning (ML)

• Cloud Advantage: Research projects benefit from the cloud’s flexibility and access to diverse computing resources. Researchers can quickly spin up experiments with different configurations and scale resources to meet the demands of their work. The cloud environment is conducive to collaborative research, allowing for easy sharing of data and findings. Additionally, many cloud providers offer specialized services and pre-built models that can accelerate research efforts.

3.2. Applied Machine Learning (ML)

• Cloud Advantage: For applied ML projects, cloud computing offers robust, scalable infrastructure capable of supporting the deployment of machine learning models at scale. Cloud platforms provide tools for automating ML workflows, from data preprocessing to model training and deployment. This can significantly reduce the time and effort required to bring ML models into production. Moreover, the cloud’s global network of data centers can help ensure that applications are responsive and available to users worldwide.

If you are still undecided between on-prem and the cloud, explore more on whether to buy or rent GPUs on the cloud.

What are the disadvantages of cloud computing?

• Downtime: Cloud services rely on internet connectivity, making them susceptible to outages. When a cloud provider experiences a disruption, all its customers are affected, leading to potential losses in productivity and revenue.

• Security and privacy: Storing data on external cloud servers introduces risks of unauthorized access and breaches. Despite cloud providers’ efforts to secure data, the responsibility of safeguarding sensitive information and ensuring privacy also falls on the users.
• Limited Control and Flexibility: Customers often face constraints with some cloud services, as they must operate within the framework and capabilities offered by their cloud provider. This can limit their ability to customize or control their IT environment fully.
• Vendor Lock-in: Transitioning services from one cloud provider to another can be challenging and costly due to differences in architectures, technologies, and data transfer costs. This can make users dependent on a single provider once they start working with them.
• Cost Concerns: While cloud computing can lead to cost savings considering upfront IT costs, the pay-as-you-go model might lead to higher operational expenses with increased requests. Users need to manage their resources wisely to avoid paying for unused services.

To learn more, check out our article on cloud high performance computing.

Don’t hesitate to contact us if you have questions on cloud computing:

External Links

• 1. “US Future of Cloud Survey Report.” (PDF). Deloitte. 2022. Retrieved February 17,2024.
• 2. “UBS and Microsoft announce landmark expansion of cloud partnership“. Microsoft. October 20, 2022. Retrieved February 17,2024.
• 3. “Google Cloud and Spotify Expand Partnership to Help Unlock Creator Potential and Reach Fans“. PR Newswire. November 16, 2023. Retrieved February 17,2024.
• 4. “HSBC partners with Google Cloud to grow climate tech ecosystem“. Cloud Tech. February 12, 2024. Retrieved February 17,2024.
• 5. “ExxonMobil to increase Permian profitability through digital partnership with Microsoft“. Microsoft. February 22, 2019. Retrieved February 17,2024.
• 6. “Vodafone and Microsoft sign 10-year strategic partnership to bring generative AI, digital services and the cloud to more than 300 million businesses and consumers“. Microsoft. January 15, 2024. Retrieved February 17,2024.
• 7. “Deutsche Börse Group and Google Cloud Announce Strategic Partnership to Accelerate Innovation“. Deutsche Börse. February 9, 2023. Retrieved February 17,2024.