The procurement industry is undergoing a transformation, harnessing the power of cloud computing for improved visibility, stronger data analysis capabilities, and lower data storage costs. While the government is taking strides towards becoming one of the biggest adopters of big data, regulation-heavy industries, including procurement, can take advantage of streamlined process and better data management to drive decision-making.
An Oracle database, for instance, can cost millions of dollars or more. In a traditional database setting, you’re looking at not only development costs, but adequate server space and storage, ongoing maintenance, and continued security threats. Today, cloud services can replace traditional data storage at about one-tenth of the cost.
Cloud computing alleviates a number of burdens, such as server maintenance and storage. These functions, as well as IT security, are managed at the cloud level. Because the costs are distributed across multiple companies utilizing the same service, the investment in a cloud computing service is drastically less than that associated with implementing on-site data warehousing.
For procurement leaders, the shift to cloud computing and big data not only means a reduction in costs but also a more efficient way to communicate with partners and stakeholders. As more enterprises embrace cloud computing technology, product development life cycles are improved and CPOs will have more sophisticated data on new products and services, as well as more accurate estimates on release dates and critical supply chain data.
Server downtime and security risks are lessened. Procurement leaders also see improvements in risk mitigation and corporate compliance.
With demands for big data increasing, the procurement industry will continue to see growth in cloud computing practices. As cost reduction remains a priority across all industries, cloud computing creates more efficient practices and improves data management for an overall increase in productivity—resulting in cost reductions across many facets of an enterprise.