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In 2022, 60% of corporate data was stored in the cloud, with over $61 billion spent on cloud infrastructure services globally in Q4, $10 billion more than in Q4 20211. Over 98% of organisations now use the cloud in some way, whether through SaaS applications or a fully cloud-native network and cloud infrastructure spend is estimated to increase by 23% in 20232. So why is the cloud so popular and why is it important to businesses?
Scalable & Optimised
The cloud has been around for almost as long as the internet, but it has only gained popularity in recent years as a solution to the difficulty in storing the increasingly large amounts of complex information and systems created by society’s digital transition3. The benefit of cloud storage is that it’s instantly scalable, providing businesses with the flexibility to quickly meet customer or industry demands and enable more bandwidth instantly4. Cloud-based and native software can also be automatically updated, meaning that tech and systems remain optimised, facilitating changing requirements with little to no downtime and less work for in-house teams5.
Reliable & Secure
Cloud infrastructure experiences 60% fewer security incidents than data centres6.
In-house data security is vital to maintain customer trust, data compliance, and reduce fraud. Security of data in-house is often managed by IT teams whose time is split between numerous responsibilities. By contrast a cloud host monitors security 24/77. The offsite nature of cloud storage also means that data cannot be accessed without clearance and logins that can be tracked. 94% of businesses asked said they saw an improvement in security after switching their data storage to the cloud, with 91% stating that the cloud makes it easier to meet compliance regulations8. Cloud-stored tech is also not reliant on hardware which can be prone to deterioration, meaning it is far less likely to lose your data9.
Collaborative & Accessible
As the cloud is mobile, everything stored on it becomes easily collaborative whilst keeping it secure. Data and documents can be accessed from anywhere with an internet connection, ensuring that employees can respond quickly to problems, no matter where they are.
The cloud also makes it easier to establish one official version of systems, data, and documents for your company. Rather than sending multiple versions of a document multiple times to get everyone’s input on it, everyone can simply work on one document that can be found in one place. This maintains consistency in data, avoiding human error, and having a clear record of revisions or updates.
The cloud also leads to easier and faster cross-border sharing of data, which is especially key to facilitating quick payments for global businesses10.
It’s not difficult to understand why companies that invest in big data, cloud, mobility, and security on average grow 53% faster than their competitors, but what makes a cloud-native payments provider better for your business11?
A cloud-native fintech has created their tech stack in the cloud, meaning that cloud technology runs through every inch of it. There is no need for complex integrations or data transfers between cloud-based and in-house servers because it is and always has been in the cloud.
Processes work as fast as possible, with instant communication between systems, facilitating real-time insights into your payments data, an instant view of every single payment and its processing, and faster settlement times.
New additions or updates to the tech stack can be automatically enabled without requiring complex development, saving your business time and money. This adaptability means that necessary updates to keep in line with changing compliance requirements can be implemented with minimal downtime and disruption, ensuring that your business doesn’t miss out on any sales opportunities.
As your business grows, your payments provider can also grow with you, providing you with the capability to continue to take on new customers and enable new customer experiences without worrying about the need for complex tech additions resulting in downtime.
Tech built in the cloud can be seamlessly connected to other cloud tech, meaning that adding options like Apple Pay and Google Pay or plugging in to other systems, such as shopping carts or accountancy software, is simple and fast.
What about cloud-based or cloud-stored payments?
Unlike cloud-native tech, cloud-based and cloud-stored options mean that the systems a business is using have not been built on the cloud or for the cloud. Usually, these systems are based in older legacy technology that has been updated or cobbled together with cloud technology, in order to function alongside cloud systems.
These old-school, clunky tech stacks require complex integrations to enable them to communicate and often result in having to access payments data across different dashboards for newer and older systems, along with much slower reporting and processing12.
For example, companies using cloud-stored options store their data on the cloud, but use server-based systems and programmes in order to process and use that data, making for a complex user journey, requiring more effort and time.
It can often take months for these businesses to integrate new developments or make changes (updates and fixes) due to the complex builds required and the challenge of then integrating them across different systems.
Cashflows
Cashflows’ tech is cloud-native, providing our customers with cutting-edge payments technology that can be easily integrated, accessed, and run, whilst minimising down-time and risk. Contact us to learn more about how we can revolutionise your experience of payments for your business.
Sources:
1 AAG
2 Ibid.
3 McKinsey
4 Salesforce; Finextra; Finextra
6 Pymnts
7 McKinsey
11 Salesforce
