Why should packaging companies invest in cloud computing? Comment –

Cloud computing enables shared IT infrastructure and services to create an IT environment that is more flexible, scalable and easily accessible. Photo Credit: Connect World/Shutterstock.

At its core, cloud computing is a specialized delivery system for IT resources that offers certain advantages over traditional computing.

Traditional computing requires businesses and consumers to purchase the IT hardware and software they need in advance (along with subsequent payments for services from vendors) before they can use them. Cloud computing (assisted by virtualization technology) provides online access to IT hardware and software, typically on a subscription basis.

A rough analogy for the difference between traditional and cloud computing would be the difference between watching a movie on a DVD player and watching a movie on a streaming platform. The former, like traditional computing, requires the purchase of hardware (a DVD player and a hard drive) that must then be stocked on-site. Like cloud computing, the latter grants online access to the film for a regular subscription fee and eliminates the need for pre-purchased hardware.

Cloud computing has enabled shared IT infrastructure and services to create an IT environment that is more flexible, scalable, and accessible than anything traditional computing methods can normally produce. As a result, the cloud is now the dominant model for deploying and maintaining enterprise IT resources, including hardware, software, and application developer platforms and tools. Global manufacturing cloud computing revenues are projected to grow at a compound annual growth rate (CAGR) of 12.9% from US$51.9 billion to US$95.2 billion between 2021 and 2026.

Why should packaging companies invest in cloud computing?

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Cloud computing is an indispensable technology for packaging companies. First, increasingly digitized packaging companies rely on IT resources in more and more areas of their operations, from traditional software systems like Enterprise Resource Planning (ERP) and Customer Relationship Management (CRM) to cutting-edge engineering apps like Digital Twins. Cloud computing can provide these IT resources far more efficiently and scalably than traditional IT stacks for the reasons previously described.

Second, as packaging companies change over time (e.g. through acquisitions and internal changes), outdated IT systems will become obsolete and possibly even collide with each other. For example, a packaging company and one of its recently acquired subsidiaries may use different IT systems to record and store customer relationship data, making it difficult to manage and use that data internally. Cloud solutions can upgrade and standardize a packaging company’s IT to prevent these things from happening.

How should packaging companies invest in cloud computing?

Public, private and hybrid cloud models offer packaging companies different advantages and disadvantages. Public cloud providers can typically offer various services alongside their public cloud infrastructure offerings, including backup and disaster recovery services. A private cloud is more customizable and typically less prone to data breaches. Packaging companies also need to consider how their specific needs and legacy IT systems can dictate the most appropriate infrastructure type. Packaging companies with complex IT landscapes should consider hybrid and multi-cloud offerings.