The relevance of cloud hosting for startups

Cloud hosting allows new businesses and enterprises to compete at the highest level by allowing them to offer the best quality services

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SME sector

The cloud is so much more than what it used to be. Just a decade ago, it was exclusively seen as an efficient way to store data. Today, its omnipresence in the workplace is only surpassed by, perhaps, computers. Businesses can now use cloud computing services across their departments and processes, and take advantage of benefits such as remote access, enhanced data security, better organisational efficiency, and much more.


In fact, as per Gartner, the global end-user spending on cloud services is a mammoth $270 Billion as of 2020—a figure that is projected to be 23% higher by the end of 2021.

This rapid adoption is often attributed to the technology’s cost-efficient nature as well. It is no surprise then that not just large enterprises, but small businesses and startups too, are using the cloud to drive business growth.

How startups benefit from the Cloud


Most startups aim to go big, fast. They are, however, often restricted by high resource requirements and limited finances. This is where cloud hosting can help them the most.

Cloud hosting allows businesses to move their operations and resources to the Internet. This way, companies can access their data from anywhere, improve productivity, and save money too. These benefits, coupled with data protection, are provided by the cloud provider, and allow startups the time to focus on growth and expansion, rather than fretting over daily operations.

Of course, that’s not all: There exist several other advantages for startups that host their business applications and data on the cloud. Let’s explore some of them in detail.


Data security

In a world where cybercrimes are becoming more common, businesses need to prioritise data security. According to Legaljobs, in 2019, more than 60% of businesses experienced social engineering or phishing attacks.

Cloud service providers offer advanced security features such as end-to-end data encryption, the latest antivirus and firewalls, Intrusion Detection and Prevention systems (IDPs), and skilled staff for regular data monitoring. To make the solution foolproof, cloud providers also deploy stringent protocols to ensure the physical security of their data centres.


For startups that do not have a dedicated IT team and operate with limited budgets, such data security measures make the most sense.


A myth that most businesses fall for is that the latest technologies like cloud hosting are meant only for large enterprises. What they don’t realise is that cloud hosting is a cost-effective solution.


With all resources hosted on the cloud, there’s no need to invest in physical IT infrastructure. Cloud hosting is also a fully managed service, meaning that there are no maintenance and repair expenses. It also supports remote working and cuts costs on renting large office spaces.

When we add all these advantages to the fact that with cloud hosting, you only pay for what you use, we realise just how much startups can optimise their budgets.

Remote working


The COVID-19 pandemic has pushed everyone to work from home. This situation was particularly difficult for companies that did not have a remote working model in place. And yet, companies that moved to the cloud were able to function seamlessly.

With the cloud, business data and applications are hosted on a remote server that employees can access via the Internet. Another benefit is that individuals can use their preferred device (a tablet, desktop, laptop, or Chromebook) to complete all their tasks.

Better collaboration


In a startup, employees are often involved in multiple projects across the board and need to collaborate with each other and with the stakeholders.

Here, email file transfers can create numerous versions of the same file, leading to confusion and a decrease in productivity. This can easily be solved with cloud hosting. With the cloud, multiple users can access and edit the same file in real time. For instance, accounting firms can host business applications such as QuickBooks or Sage on the cloud, and multiple accountants can work on the same file simultaneously to get the work done.

Simple scalability

One of the most significant advantages of cloud hosting is its ability to scale instantly. Startups are always waiting for that one big project that boosts their growth. In such situations, it is important to scale up quickly and meet all the deadlines.

Startups that use cloud hosting simply need to contact their cloud provider. The required resources are delivered instantly and they continue to work without any hassles.

Cloud is the future

The moment startups begin leveraging the cloud, business dynamics shift. Not just with the numerous benefits that it offers, but also with how it levels the playing field. Cloud hosting allows new businesses to compete at the highest level by allowing them to offer the best quality services. The best part? Cloud services can be adapted to all industries enabling every kind of startup to enhance their productivity and optimise their business processes.

The article has been written by Vinay Chhabra, CEO, Real Time Data Services Pvt. Ltd.