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What is cloud computing?
Cloud computing? Perfect for companies with customised software!
Cloud computing is a key to greater efficiency, flexibility and scalability, especially for small and medium-sized enterprises (SMEs). And in particular, companies that rely on individually developed software benefit from the possibilities of cloud computing. In this article, you will learn what cloud computing is and what advantages it offers. We will also use specific use cases to show why the cloud is often the ideal solution for companies.
What is cloud computing?
In cloud computing, storage, servers, networks and software, i.e. hardware and services, are provided via the internet. Service providers such as AWS, Microsoft Azure and Google Cloud offer a range of packages for storing data of any size on the providers’ enormous servers, i.e. in the cloud. For companies, the technology offers not only data security but above all flexibility and scalability, since they only have to pay for the storage capacity they actually need. This means that retailers, for example, can quickly book additional server capacity at short notice during the Christmas shopping rush when demand is high, and reduce it again just as quickly after the peak period.
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Advantages of cloud computing
Cloud computing offers numerous advantages for companies of all sizes:
- Kosteneffizienz: Dank Cloud Computing benötigen Unternehmen keine eigenen Hardware-Ressourcen für ihre Daten. Investitionen in eigene Server und deren Wartungskosten entfallen. In der Cloud bezahlen Unternehmen hingegen nur für tatsächlich genutzte Kapazitäten.
- Cost efficiency: thanks to cloud computing, companies no longer need to reserve their own hardware resources for their data. There is no need to invest in and maintain their own servers. In the cloud, on the other hand, companies only pay for the capacities they actually use.
- Worldwide access: International project teams and remote working are simplified thanks to cloud computing, as employees can access software and data anywhere and anytime – in contrast to on-premises solutions.
- Secure data: Nothing is worse than a company server crashing. With cloud computing, companies benefit from modern security standards such as encryption, firewalls and regular backups, which all major cloud services offer as standard.
- Secure servers: The infrastructure is located at the service provider’s premises and is in professional hands there. This concerns, for example, fire protection, access protection, mirrored, geographically remote backups, but also protection against hackers via firewalls, etc. All of this is handled much more professionally by a service provider than in the server room of a small or medium-sized company. Microsoft alone has 34,000 people working on the cyber security of cloud services.
Of course, cloud computing also has some disadvantages compared to local on-premises solutions. For example, a flawless internet connection is essential for using cloud services. And if you have particularly sensitive data, you need to be especially careful to ensure that the selected cloud is GDPR-compliant. In addition, there is a certain dependency on the cloud service provider. Companies should therefore keep the vendor lock-in effect, i.e. the dependency on just one provider, to a minimum and maintain at least one alternative storage resource.
Why cloud computing is perfect for custom software
Customised software, i.e. applications developed to meet the specific requirements of the customer, is ideally suited to the advantages offered by cloud computing.
This means that individually programmed software can be flexibly scaled at any time to handle growing data volumes or an expanded user base. What’s more, with the help of cloud technology, customised software can be effortlessly integrated into other IT infrastructures within the company, such as ERP systems.
- Easy updates: Applications hosted in the cloud can be updated and expanded more easily and without downtime or installation effort.
- More agile development: Whether it’s a prototype or a test version, software solutions can be provided and tested more quickly in cloud-based development environments.
In which areas cloud computing is used
Cloud computing offers a range of possibilities for various industries and fields of activity. In mechanical engineering, CAD software in the cloud facilitates cross-location collaboration in product development. Retailers benefit from the quick and easy scalability, allowing them to expand server capacities as needed during peak periods. And in our field, custom software development, cloud computing helps with testing and rolling out development projects.
With cloud computing, companies of all sizes save costs, respond more flexibly to seasonal effects or market changes and benefit from high data security, flexibility and global availability.

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