Technology Unwrapped

Technology Unwrapped

The most important technology concepts, strategies and actions uncovered for your business.

The Benefits and Risks of Cloud Computing

advantages of cloud computingWith ever-changing technology and data, storing and maintaining information continues to present challenges for every business owner. This is especially true for businesses that operate on a mobile or remote basis, with employees in the field who are frequently needing to access and update data to collaborate with other team members. Cloud computing provides several advantages to a business environment, but it’s imperative to evaluate both the benefits and the risks involved to determine if the solutions are right for your organization. 

Cloud Computing in 2025: The Current Landscape

The cloud computing market has reached $912.77 billion globally in 2025 and is projected to grow to $1.614 trillion by 2030. This explosive growth reflects a fundamental shift in how businesses approach technology infrastructure, with 94% of enterprises now using cloud services in some capacity.

For small and medium businesses specifically, over 50% of technology budgets are now allocated to cloud services in 2025. This represents a dramatic increase, with 44% of small business workloads and 62% of SMB data now hosted in the cloud. The trend is particularly strong among Nebraska businesses seeking competitive advantages through improved agility and cost optimization.

What are the Benefits of Cloud Computing?

Cost Savings and Budget Predictability

Cloud computing eliminates the need for expensive server hardware, software licenses, and ongoing maintenance contracts. Instead of large upfront investments, businesses pay a predictable monthly fee based on actual usage. This approach is particularly beneficial for growing Omaha companies that need to manage cash flow carefully while still accessing enterprise-grade technology.

Speed and Flexibility

Cloud services can be deployed quickly, often within hours rather than weeks or months required for traditional IT setups. When your business needs additional storage, computing power, or new applications, these resources are available on-demand. This speed allows you to respond rapidly to new opportunities or changing market conditions without waiting for lengthy procurement and installation processes.

Anywhere Access and Team Collaboration

Your team can access business applications and data from any location with an internet connection. This capability supports remote work arrangements and enables real-time collaboration between team members, regardless of their physical location. Field employees can update customer information immediately, while office staff can access the latest data for decision-making.

Automatic Scaling

Cloud platforms automatically adjust resources based on your business needs. During busy periods, additional computing power and storage become available without manual intervention. When demand decreases, resources scale back down, ensuring you only pay for what you actually use. This flexibility is especially valuable for businesses with seasonal fluctuations or unpredictable growth patterns.

Reliability and Uptime

Professional cloud providers operate multiple data centers with redundant systems designed to minimize downtime. These facilities include backup power, cooling systems, and network connections that most individual businesses couldn't afford to implement. Regular maintenance and updates happen automatically, reducing the risk of system failures that could disrupt your operations.

Reduced IT Management

Cloud providers handle routine maintenance tasks like software updates, security patches, and system monitoring. This arrangement frees your internal team to focus on activities that directly support your business goals rather than spending time on technical maintenance. You also avoid the complexity of managing server hardware and software licensing.

Understanding Cloud Service Models

  • IaaS (Infrastructure as a Service) provides virtual servers and storage you rent on-demand. You manage applications and data while the provider manages hardware. This model works best for businesses needing flexible computing power without purchasing physical equipment.
  • PaaS (Platform as a Service) offers a complete development environment in the cloud. Developers build and deploy applications without managing infrastructure. This is ideal for development teams and custom software needs.
  • SaaS (Software as a Service) delivers pre-built applications accessed via web browser, including tools like Microsoft 365, Salesforce, and QuickBooks Online. No installation or maintenance required. This is best for everyday business tools.

 

What are the Risks of Cloud Computing?

Data Security and Privacy

A cloud data breach can expose customer records, payment information, or trade secrets. The average cost of a breach ranges from $200K to $400K in remediation, legal fees, and reputational damage. Choosing providers with encryption, regular security audits, and compliance certifications is essential. CoreTech audits cloud configurations to ensure proper security controls are in place before and after migration.

Internet Connection Requirements

Your business becomes dependent on reliable internet service when using cloud applications. Poor connectivity doesn't just slow work down; it can halt customer service, prevent order processing, and disrupt communications entirely. For critical operations, CoreTech recommends redundant internet connections and hybrid cloud strategies to maintain business continuity.

Compliance and Regulatory Challenges

Healthcare, finance, and other regulated industries face strict requirements for data location, access controls, and audit trails. Cloud storage can complicate compliance if providers don't meet industry standards. CoreTech ensures your cloud configuration meets HIPAA, PCI-DSS, or other regulatory requirements specific to your industry.

Cloud Security Checklist

  • Before moving to the cloud, ensure your provider offers:
  • Encryption for data in transit and at rest
  • Multi-factor authentication for all user accounts
  • Regular third-party security audits
  • Clear SLA commitments on uptime (99.5% or higher)
  • Comprehensive backup and disaster recovery protocols
  • Compliance with your industry standards
  • Detailed documentation of data storage locations
  • Clear exit strategy if you need to switch providers

 

Managing Risks with an Experienced IT Support Provider

Some perceived risks of cloud computing that may concern business owners can be mitigated by choosing the right IT managed service provider. While there are many MSPs available, it’s important to find one that will serve as an advocate and look out for your best interests. 

Your IT provider should serve as a good partner to help navigate the complexity of cloud computing. This means finding an MSP that will tell you upfront what resources you need, how much storage space and bandwidth is required, and what type of licenses you may need to operate your business smoothly and at full capacity without any hiccups or unexpected expense. 

Ultimately, cloud computing benefits often outweigh the risks, and now is a great time to evaluate these solutions for your business. CoreTech understands the challenges of managing data while keeping your business running and knows how to deliver cloud computing that will benefit your business processes. Contact us today to find out how cloud computing could serve your organization.

Topics: Cloud