As cloud wastage increases, businesses are looking for a silver lining.
Cloud computing services allow businesses and developers to organize resources and run workloads remotely over the Internet.
Millions of people around the world rely on cloud computing to provide a seamless solution for sharing and storing data. As the coronavirus forces many businesses around the world to move away from their operations, the global cloud computing market continues to grow with a 33% increase this quarter to $ 36.5 billion.
What we know today as cloud computing dates back to the 1950s, when IBM’s clunky mainframe infrastructures would each encompass an entire server room. Fast forward to today and rapid advancements in technology allow hundreds of servers, fractions of size, to fill rooms of the same size.
Colossal IBM mainframes took up a server room each in the 1950s
But rising prices, monopolization by large-scale mega-sellers, and security risks, presented by centralizing huge amounts of user data, remain issues for providers and consumers.
Blockchain technology, which has the power to offer solutions in areas ranging from supply chain transparency to transfer of ownership, represents a logical next step in cloud computing.
Below are several ways in which blockchain improves existing cloud computing models.
Blockchain offers a way out of a monopolized market
As the need for cloud computing grows exponentially, the monopolies of cloud computing giants such as Amazon Web Services, Microsoft Azure, and Google Cloud are also increasing. The industry is dominated by a handful of vendors, similar to mobile operating systems and search engines.
The world’s largest cloud computing companies quickly took advantage of the increased need for on-demand provision and storage of computing resources, and thus gained massive market share.
AWS alone has thirty-two percent of the cloud computing market in 2020 and has generated more revenue than its three biggest competitors combined.
Canalys highlighted the market share of the big 5 at the end of Q3
Mega-sellers are stifling the growth of smaller competitors; blockchain offers businesses and developers an alternative solution.
By using blockchain-based models, enterprise-level cloud computing solutions can compete on a level playing field. On the consumer side, low cost storage and computing is made available without having to trust a handful of central authorities and pay more in the process.
Blockchain offers a more profitable solution
With the industry giants currently holding the keys to the kingdom, cloud computing has become inefficient for many businesses when used on a daily basis.
Major cloud computing providers such as Google require vast amounts of space and resources to run server farms on such an enormous scale, and this is unsurprisingly reflected in the cost to the end user.
This would be somewhat acceptable if the end user actually used everything they paid for, but unfortunately this is not the case and more than a third of cloud computing spending is wasted.
As data processing costs rise, blockchain can bypass the overhead costs associated with traditional cloud storage.
Blockchain-based cloud providers don’t have to charge end-users higher prices for operating huge processing farms, and therefore can offer computing power at a fraction of the cost of providers. centralized cloud.
This is one of USP’s many attentions to innovative companies such as Gather. Using blockchain technology, decentralized cloud providers can offer businesses access to cheap and reliable processing power while maintaining high transfer speeds and overall security.
Gather has created a blockchain-based model that benefits all parties involved; web users switch to websites to share idle processing power, website owners gain registered users, and businesses enjoy low-cost computing power.
Blockchain Solves Important Security Problems
In addition to lowering business costs, decentralized cloud computing eliminates the risk of data breaches that currently exist in centralized cloud computing models.
The results of a study by global intelligence firm IDC found that nearly 80% of companies surveyed had experienced at least one cloud data breach in the past 18 months.
Storing data at a single point presents a higher risk of data breach. The distributed data storage solutions offered by blockchain technology divide data files into fragments which are encrypted and then stored in multiple nodes, often in many different countries. This greatly enhances the security of the network.
Blockchain can use inactive computing power that is otherwise wasted
Some of the world’s largest tech companies today rely on networks of inactive devices provided by volunteer users, using the combined processing power to perform resource-intensive calculations.
IBM’s World Community Grid relies on computational power from idle devices provided by volunteer users
Several blockchain companies are further improving this model by offering pioneering solutions that encourage those with computing power to save.
Ankr seeks to pay those who can spare storage and computing power and match them with those who need it, building on the business model of the sharing economy.
DADI aims to reduce the impact of existing server farms on the environment by removing intermediary services and providing peer-to-peer exchange for computing power.
As the end of 2020 approaches, distributed workforce is becoming the new normal. The global appetite for on-demand IT services is growing increasingly insatiable and blockchain seems poised to feed the masses.
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