11 Benefits of Cloud Computing

By Indeed Editorial Team

Updated November 9, 2021 | Published January 5, 2021

Updated November 9, 2021

Published January 5, 2021

Businesses need to access and store large amounts of data on a daily basis. Companies who use cloud computing systems benefit from increased productivity, cost savings, data insights among other advantages. Companies switch to cloud computing instead of traditional in-house networks to make it easier for both business employees and customers to experience the benefits of cloud access. In this article, we explain the benefits of cloud computing and share the different uses of cloud computing.

What is cloud computing?

Cloud computing is the process of using the global network of the internet to manage software systems that can be accessed remotely through any connected device. "Cloud" is an abstract term derived from the symbol first used to represent this system of interconnected web-based networks.

Cloud computing changes the traditional method of controlling software applications. Before cloud computing, businesses had to manage their data through an internal network stored on computers at a business location. With the increased need for shareable data on mobile devices, cloud services provided a solution to storing data that can only be accessed in one place. Increased data consumption has also expanded the need for larger server space than many companies can effectively provide.

Read more: What Is Cloud Computing? (with Usage Info and Benefits)

Types of cloud computing

Here are the four main types of cloud computing:


Public cloud computing provides lots of space for information storage and general access to systems stored on the cloud. This type of cloud computing is helpful for software development because it is easily scalable depending on the needs of the user.


Private cloud computing is typically used by one organization. It utilizes strong firewall protection to secure user information. Because of the higher level of security used for this platform, private cloud computing is good for businesses that store and use highly sensitive information.


A large space that can be shared among multiple organizations, community cloud computing is generally shared by organizations in the same industry.


Hybrid models link public and private cloud space, which makes hybrid cloud computing good for businesses that handle multiple data points including sensitive information and general access.

Read more: 9 Types of Cloud Computing (With Definition and Tips)

What is cloud computing used for?

Cloud computing is highly versatile in its functions and is used for the following:

Data storage

Cloud computing comes from the idea that data can be remotely accessed on a virtual network. Storing data on the cloud is useful for both public and private organizations because of the nearly limitless space to house information. It also frees up space on employee hardware because software accessed through the cloud uses less memory on a device.

Data security

Another reason to use cloud computing is the extra security protection that comes with using a cloud service platform. IT professionals monitor cloud accounts for suspicious activity and use digital firewalls to secure sensitive information. They constantly check that cloud systems are working to prevent a data breach.

Related: 17 Top Cloud Security Certifications (With Benefits and Tips)

Data sharing

Cloud computing is used to share large data files between business professionals and organizations as well as private users. Uploading data to a cloud makes collaboration easier because anyone can be granted access to the cloud platform.

Remote access

Using cloud computing gives businesses remote access to all their data no matter where they choose to log in to the cloud. This makes it easier for employees to increase productivity because they can open company systems from any location through the internet.

Controlled access

Cloud computing allows businesses to control user access to their data. Companies know exactly who is logging in to their systems and what information is used.

Related: Everything You Need To Know About Computer Networking

What are the benefits of cloud computing?

Here are some of the numerous benefits of using cloud computing for your business:

1. Efficiency

Cloud computing helps to create a more efficient workflow. Employees have quick and easy access to company data, software systems and storage through a platform managed by a cloud computing service. Providers handle technical updates as well as computing issues through their internal staff, which also means companies can spend less money and downtime on hardware and repairs. Businesses that don't need a large IT staff also benefit from the technical expertise of the computing service instead of hiring their own IT professionals.

2. Scalability

Cloud computing is ideal for all businesses because it can easily handle fluctuating infrastructure demands. Large and small businesses can use cloud computing to customize the amount of resources and space they need. This is especially ideal for start-up businesses because they can quickly begin managing operations in the cloud without a lot of upfront costs or IT staff. As the business grows, management can increase their amount of cloud computing space to fit company expansion.

3. Continuity

As long as you can access the internet and the cloud computing service is functioning normally, you can also access anything your business has stored in the cloud. In the event of a loss such as fire damage to a building or destruction from a natural disaster, you're less likely to lose important data, even if your hardware is damaged.

Cloud computing also allows businesses to utilize the same systems and business functions across multiple locations whether locally or globally. Employees who transition from one office to another can continue their work without the lengthy process of relocating hardware or software applications.

4. Collaboration

Working through a cloud computing platform can make it easier for employees to share information and ideas. Through a cloud system, you can also allow those outside the company to access certain files or software. This collaborative business structure can benefit companies across multiple industries from design professionals sharing renovation plans to doctors accessing patient medical records.

5. Loss prevention

With the backup functions of a cloud computing system, you can eliminate loss of data through theft, software and hardware malfunctions, computer viruses and misplaced hardware like laptop computers. By storing data in a cloud platform, you're less likely to lose essential data.

Read more: What Is Security Loss Prevention?

6. Flexibility

Using a cloud for storing and maintaining company systems and information gives you the flexibility to work anywhere you have access to the internet. This provides increased mobility and efficiency for employees who can open applications to find information on a phone or laptop whether they are in the office or out at a business meeting. This also allows for a more flexible environment where team members can work remotely and still do their jobs effectively.

7. Security

Because data theft is a concern for all businesses, cloud service providers devote much of their resources to securing and protecting information stored in a cloud. Cybercriminals usually have a much harder time breaking through the defenses of a large cloud hosting platform than a small business's IT protection. Choosing to host your resources on a cloud also gives you added insurance protection from the service provider should there be a data breach.

8. Control

Using a cloud computing system gives you more control over how business information is stored and accessed by all employees. This helps companies maintain the quality of their business operations while also maintaining a record of any changes to saved data.

9. Relevancy

Choosing cloud computing can make you more competitive among businesses in your industry. Consumers and businesses alike benefit from the efficiency and security of cloud data, making it a selling point for your product or service.

10. Big data insight

Cloud computing makes it easier for data scientists to analyze trends in their business operations. These insights can be used to cut costs and increase efficiency in organizational structures. Some cloud platforms even offer integrated data analytics to help you identify important trends in consumer and employee behaviors. Customizable reports allow businesses to identify areas of actionable data. Companies can then use this data to increase profits and cut costs.

Related: 9 Ways Industries Use Big Data

11. Savings

Cloud computing can offer a more cost-effective business model than traditional IT departments. Most cloud computing plans charge based on the specific needs of a company, so you won't pay for excess storage space or services you don't use. Using a cloud also eliminates excess costs for hardware and maintenance on company property.

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