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What Speaks for Cloud Technology?

Reading time: 2 minutesLast updated: August 6, 2025

With cloud computing, fixed investment costs and risks turn into variable costs for actual usage. The provider takes care of operating and maintaining the IT resources and of their upgrades. In the software-as-a-service segment in particular, this saves real money. The software a company needs no longer has to be purchased at high cost, installed on every computer and maintained. With cloud computing you rent exactly the number of workstations you need for a program instead. That saves money not only on the programs themselves but also on staff, because the maintenance effort drops and a smaller IT department is enough.

Flexibility

IT services from the cloud are dynamic and can therefore be adjusted to what the user needs at short notice. That lets companies react quickly to under- or overload. New procedures and production options can also be opened up faster and with less capital outlay. The software required is provided in the cloud, so a time-consuming “rollout” to every company computer is unnecessary. Cloud providers’ contracts usually do not tie companies down for long periods either. If a company has to switch to different software, that can be done quickly and easily without large investment costs.

Future-Proofing

The cloud is a technology that lets companies improve their quality and their competitive and growth prospects. One reason is that innovation cycles in the IT industry keep getting shorter, and keeping pace with that speed is a major challenge for companies. With its high flexibility and the way it shifts the pressure to innovate onto the service providers, cloud computing is one possible answer to that problem. A large majority of companies now rely on the cloud, which means cloud-based solutions will achieve the broadest compatibility on the market in the medium to long term, while standards from traditional software age faster.

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