Why are Cloud Based Software on the Rise?

Cloud-based software has been a critical trend not only in the past year but for the last couple of years altogether. When it first became popular, not everyone completely understood the functionality and the necessity of such software. We know that the technology grants us the capability to store servers and data securely off-site, where all users can access it through the internet. We see that transitioning all data into the cloud in all sectors and ship management is no different. 

Data from recent years manifests a stark growth of over 80% of companies utilizing public or private cloud-based systems. Further, all the companies have over half their IT capacities depending on cloud services. Cloud computing is expected to grow from a 371.5 billion dollar industry in 2020 to an 832 billion dollar industry in 2025. That means its size and power will more than double! 

The cloud is praised to severely improve customer journeys, fuse productivity, diminish costs, and drive revenue. Let’s take a look at the backstage of this incredible growth and efficiency to understand the driving forces behind it. 

4 Reasons Why Cloud Has Become So Big

Digital Revolution

Every single industry is facing a constant demand for access to real-time information. Especially when it comes to transportation and shipment industries that oversee numerous data points, access to continuous information becomes extra valuable. The modern era customer expects a proper digital interface in the companies they do business with. “Internet of Things” has become necessary for all companies to integrate digital functioning into their business model. We see this increasing need for being constantly plugged in or connected in maritime procedures and ship management. More and more, we are observing a turn to digital to deliver solutions better, meet deadlines, increase capacities and security. Through the increased efficiency of digital interfaces, companies are better equipped to meet the high demands of their customers. 

Growth of Data

Data is everywhere. Every single person who goes online is momentarily producing new information constantly. Around 83 million people are born annually, and on average, they will be creating about 500MB of data daily. Data production is only expected to grow from this day on, potentially doubling every year. Having data produced on this large scale have been imposing difficulties due to capacity restraints. That is why cloud-based systems couldn’t have come to use in a better time. With the flexible storage capacities of cloud-based software, businesses can take on the challenges that come with data collection. 

The Rise of Artificial Intelligence

What is now being called the fourth Industrial Revolution, the era of AI has started to take over the world. Artificial Intelligence and, along with it, Machine Learning has granted computers the capacity to learn without instruction or programming. These computers convert Big Data through cloud-based software and approach it as if it were the human brain. As a result, it can acquire capacities similar to the brain, including processing, perception, motion, and manipulation. Through Machine Learning models, businesses can reduce the previously necessary capital expenditures, open-source their platforms, and utilize cloud services for their tasks. 

Application Programming Interfaces

Application Programming Interfaces allows platforms to produce novel digital offerings by breaking down their IT systems into separate domains and connecting them with other IT systems. APIs are most commonly used by companies trying to adapt and integrate into the digital ecosystem and better deliver to their customers’ demands. APIs share vast amounts of information automatically, and cloud-based software is the most optimal solution to take on the load while protecting this information from the risks of cyberattack. 

Overall, living in an era of constant change, technological revolution, and digital transformation, adapting to the novel demands of the century require the integration of cloud-based software. Explore how we did that in ship management at explore navatom cloud!