Rabu , Desember 7 2022
Digital transformation

The Important Role of Cloud Computing to Help Business Expansion in the Digital Age

Digital transformation is a keyword that often appears related to the ongoing industrial era 4.0. Expansion of business through the digital realm is inevitable for small-scale businesses to corporations due to the increasing intensity of community activities in virtual media.

Reporting from Inc.com, a survey conducted by McKinsey in 2020 found that companies tend to quickly implement technology digitally. About half of all company executives surveyed also reported increased digitization for customers and another 35% reported the same for supply chains.

Digital transformation must be carried out in stages with precision and speed. One of them is by utilizing cloud computing to put the company’s internal or external systems.

Cloud computing makes business operations more effective, because companies don’t need to build physical servers anymore to put the company’s systems or applications, thereby reducing large upfront expenses. In addition, the cloud makes it easier for IT teams to configure and prepare corporate systems because of the menu and various features that make it easier.

Digital transformation also allows companies to get technology investments, even if they are obtained over a long period of time. That is why, many organizations are starting to adopt technology solutions in running their business, such as cloud computing to AI.

PricewaterhouseCoopers (PwC) in its research report entitled ‘The Impact of Cloud Computing on the Indonesia Economy’, wrote that the cloud is a solution for businesses to expand their network in digital media without having to build a high-cost data center to buy networks, hardware, and software. In fact, companies can also make efficiency in the HR field to manage their digital systems.

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Through the cloud, business people can expand their marketing network by building e-commerce, for example. For the manufacturing industry, the cloud is very helpful to create a comprehensive supply chain system so that it can increase the efficiency of operational activities and reduce down time.

For logistics companies, the cloud plays an important role in operating a precise and reliable distribution system in the midst of high demand for delivery services. Cloud is also a solution for businesses to optimize digital channels to reach customers in various regions.

The research conducted by PWC involved 96 business people, consisting of 81 small and medium enterprises (SMEs) and 15 large companies. Based on a survey conducted, it is known that 89 percent of SMEs and 80 percent of large companies claim to have used cloud computing to help their business.

After using cloud services, 67 percent of SME respondents in the PwC survey said they recorded an increase in the effectiveness of their operations. In addition, 84 percent of SMEs said that after adopting the cloud they could increase their income by up to 20 percent.

If SMEs use the cloud to reduce operational costs and increase revenue, it is different for large companies. The main goal of large companies using cloud services to control business responsiveness to market dynamics. That way they can innovate, experiment, and adapt their products and services based on customer desires.

In large companies, the use of the cloud can reduce IT operational costs. They can also optimize IT systems quickly by utilizing cloud services.

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Huawei Cloud is one of the cloud service providers that companies can choose to develop their digitization system. Huawei Cloud continues to expand its global data center to reach and connect the world. As of September 2021, Huawei Cloud operates 65 Availability Zones (AZs) in 27 geographic regions worldwide, covering more than 170 countries and regions.

Huawei Cloud helps companies to improve their business capabilities, thereby gaining the trust of more consumers. Including from the e-commerce segment which is greatly helped by Huawei Cloud services.

There are various solutions presented by Huawei Cloud to support e-commerce performance, including the Elastic Load Balancing (ELB) service which automatically distributes incoming traffic and supports 100 million concurrent connections. ELB features redundancy, ensuring continuity and reliability of service, even when a node is down.

Furthermore, Elastic Computer Service (ECS) and Relational Database Service (RDS) provide scaling policies defined to handle increased traffic during large-scale promotions and flash discounts, ensuring service stability.

Huawei Cloud offers automatic elastic capacity scaling so that e-commerce is not overwhelmed by sudden increases in demand. Huawei Cloud works with partners to provide you with end-to-end bespoke solutions and to quickly build an e-commerce platform. e-commerce is needed to accommodate high customer demands, especially during special moments such as national shopping days and.

Huawei Cloud’s e-commerce solutions are also backed by strong data processing capabilities and have been verified by Huawei’s consumer cloud and VMALL. The solution supports high concurrency scenarios, even handling hundreds of millions of user requests during flash discounts, or other major events.

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