Amazon Web Services (AWS) is the quintessential cloud services platform serving the largest number of companies. Using AWS, any size company can expand computing power, store data, and help scale their business. While AWS isn’t the only cloud services platform, it is definitely the most prominent. Furthermore, 70 percent of companies in the US now use cloud technology for at least one aspect of infrastructure. Forbes reports promised growth as 56 percent of companies report they are currently transferring IT operations to cloud systems. Is your company on the fence regarding migration to the cloud? Consider these reasons why strategic companies are moving to the secure cloud in 2018.
Reduce IT Expenses
How much should your company spend on information technology? Using data from the yearly State of the CIO survey published in CIO Magazine, in 2013 the average amount a company spent on IT was 5.2 percent of its revenue, and the average range of spending is 4 to 6 percent. More specifically:
- Small companies with a revenue of less than $50 million spend up to $3.4 million on IT annually.
- Mid-size companies with a revenue of less than $2 billion will spend up to $82 million on IT annually.
- Mega-corporations with revenues exceeding $2 billion spend less than mid-size companies, at an estimated 3.2 percent or approximately $64 million.
What this indicates is that small-to-medium size trucking businesses are going to spend more on in-house IT. Fortunately, there is a way to cut costs. Many companies already are by using cloud storage. According to IDG cloud research in 2016, “On average, organizations will invest $1.62 million in cloud computing, with enterprise organizations leading the spending.” How do companies save with cloud storage?
- Reduced staff expenses when outsourcing cloud services
- Minimal expense for equipment thanks to off-site servers and mainframes used for cloud services
- No need to maintain equipment and provide ongoing and costly updates
All of these expenses, or at least some, are reduced by outsourcing IT operations using a cloud services platform like AWS.
Our bulk commodity trucking software solution, Welltrax, is hosted on AWS. Estimate how much Welltrax could save you with our free ROI calculator.
Successful Use of Big Data
How are businesses using cloud technology? According to IDG research, data storage and management coupled with business and data analytics. These two areas are instrumental in a trucking company of any size. With data storage using AWS, big data can finally be organized in a way that allows companies to analyze it efficiently. The results of that analysis can identify patterns and trends that are affecting a company’s productivity or bottom line. This information is what companies need in order to take raw data, such as shipping times, freight rates, and delivery schedules, and evaluate this on a broad scale.
A Guarantee of Future Cloud Service
The last thing you want to happen when you opt for cloud services is for the provider to go bust. That will not be happening with Amazon Web Services, ensuring that your data will remain protected and available. AWS is a leading provider of the cloud market, beating out Google, Microsoft, IBM, Alibaba, and other niche players. In fact, Amazon is bigger than the next five competing companies—combined.
According to Synergy Research Group Chief Analyst and Research Developer John Dinsdale, “While we forecast 40% growth in the total market for 2017, there’s still something a little shocking about seeing a business unit the size of AWS consistently growing its revenues by over 40%.” Thanks to owning the lion’s share of cloud computing, AWS is not going anywhere anytime soon. For companies looking for a long-term cloud computing provider, Amazon simply cannot be beaten.
Maintain Premium Level IT Security
This is one area where AWS shines. AWS security covers everything starting with strong safeguards to protect data at secure centers. Cybersecurity is one of the biggest reasons why companies are reluctant to transfer operations to the cloud. Yet by choosing a cloud service provider, such as Amazon Web Services, you actually increase security for your company. Some of the ways that AWS protects its cloud customers include:
- Inclusion of network firewalls that offer customization capabilities for companies
- Encryption in transit with TLS, which is the latest version of SSL certificates and the best level of security available for websites
- Automated protection against DDoS attacks and systems in place to mitigate impact of attacks
- Comprehensive data encryption capabilities including Oracle RDS, EBS, Glacier, and Redshift
- Cryptographic key storage that is hardware-based and dedicated to your server and system
- Amazon’s proprietary security assessment service called Amazon Inspector
And the list, literally, goes on and on. The security benefits of using AWS for cloud server needs are beyond the pale to what most companies could provide in-house on their own IT departments.
Choosing a cloud server gives you the latest technologies available for security, cost-effectiveness, and capabilities, thanks to the expertise of the cloud providers, such as Amazon. Meanwhile, you have the ability to focus on the areas of trucking business where you are the expert. It is a win-win for you as a fleet owner who wants to save money and time while growing your company.
If you’re thinking about moving to technology that can improve your business’ bottom line, contact us to demo our tech or talk strategy. We’re a leading mobile transportation software provider that can help you enjoy the advantages of cloud hosting and better fleet management software.
Check out The Agile Fleet Playbook to learn more about problems the trucking industry faces, research predicting future trends, and the best strategies and tools to optimize your business.