As cloud waste increases, businesses seek a positive lining.
Cloud computing services allow companies 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 data storage and sharing solution. As the Coronavirus forces many companies around the world to remotely take 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 can be traced back to the 1950s, when IBM’s clunky mainframe infrastructures would each engulf an entire server room. Fast forward to date and rapid advances 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 hyperscale megavendors, and security risks, presented as a result of centralizing huge amounts of user data, remain problems for both suppliers and consumers.
Blockchain technology, which has the power to offer solutions in areas ranging from supply chain transparency to ownership transfer, represents a logical next step in cloud computing.
Below are several ways blockchain improves existing cloud computing models.
Blockchain offers a way out of a monopolized market
As the need for cloud computing grows exponentially, so do the monopolies of cloud computing giants like Amazon Web Services, Microsoft Azure, and Google Cloud. The industry is dominated by a handful of providers, similar to mobile operating systems and search engines.
The largest cloud computing companies in the world have been quick to take advantage of the growing need for on-demand delivery and storage of IT resources and have gained huge market share in this way.
AWS alone owns 32% 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
Megavendors are stifling the growth of smaller competitors; blockchain offers both businesses and developers an alternative solution.
Using blockchain-based models, enterprise-wide cloud computing solutions can compete on equal terms. For the consumer, low-cost storage and computation are made available without having to trust a handful of central authorities and pay more in the process.
Blockchain offers a more convenient solution
With industry giants currently holding the keys to the kingdom, cloud computing has become cost-effective for many businesses when used on a daily basis.
Major cloud computing providers like Google require huge amounts of space and resources to run server farms on such a huge scale, and this is not surprisingly 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 the cloud computing spend is wasted.
As data processing costs rise, blockchain can get around the overhead costs associated with typical cloud storage.
Blockchain-based cloud providers do not have to charge higher prices to end users due to managing huge compute farms and thus can offer compute power at a fraction of the cost of centralized cloud providers.
This is one of USP’s many attentions to innovative companies like Gather. Using blockchain technology, decentralized cloud providers can offer business access to affordable and reliable processing power while maintaining high transfer rates and overall security.
Gather created a blockchain-based model for the benefit of all parties involved; Web users accept websites to share their idle processing power, website owners earn from users they have activated, and businesses benefit from low-cost computing power.
Blockchain solves important security problems
In addition to reducing business costs, decentralized cloud computing eliminates the data breach risks currently found in centralized cloud computing models.
The results of a study by global intelligence firm IDC found that nearly 80% of companies surveyed have experienced at least one cloud data breach in the past 18 months.
Single-point data storage poses a greater risk of data breach. The distributed data storage solutions offered by blockchain technology break data files into fragments that are encrypted and then stored in multiple nodes, often in many different countries. This makes the network security noticeably stronger.
Blockchain can use otherwise wasted idle computing power
Some of the largest technology companies in the world today rely on networks of idle devices provided by volunteer users, using the combined processing power to complete resource-intensive computations.
IBM’s World Community Grid relies on computational power from idle devices provided by volunteer users
Several blockchain companies further improve this model by offering pioneering solutions that incentivize those with computing power to spare.
Ankr seeks to pay those who can save storage space and computing power and associate them with those who need them, relying on the economic model of Sharing Economy.
DADI aims to reduce the impact existing server farms have on the environment by removing intermediary services and offering peer-to-peer exchange for computing power.
As we approach the end of 2020, the distributed workforce is becoming the new normal. The global appetite for on-demand cyber services is becoming more and more insatiable and the blockchain seems poised to feed the masses.
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