The clouds’ strength

We are experiencing an unprecedented situation due to the COVID-19 virus. While the most serious is undoubtedly the terrible loss of so many lives, the impact of the pandemic on the economy is being (and will be) brutal. The health alert, the confinement and the stoppage of activity have led to the paralysis of many companies and sectors of activity, the proliferation of ERTEs, the cutbacks in forecasts, as well as the uncertainty in the economy and the fear of the future that is coming. The direct consequence, for those companies that cannot work telematically, is the loss of business and staff cuts or, in the worst case, closure.
Faced with situations like the present one, it is clear that technology is a great ally. If many companies can continue to maintain their activity, and therefore their income, it is thanks to the possibility of working remotely using an Internet connection and the cloud. The need to work from home, with secure access to the necessary information, programs and applications, highlights the benefits of cloud technology.

Of course, the advantages of the cloud are enormous to face exceptional scenarios like the one we are living. The cloud allows companies to adapt to the needs of the moment, thanks to its flexibility and scalability, being able to offer the same services they previously provided from their headquarters, but keeping their workers safe at home. The elasticity of the multiple possibilities offered by cloud scenarios also favours management and control of expenses, since it allows environments and resources to be switched off when business demand decreases without incurring major costs in switching resources on and off. Another advantage of the cloud is that it offers a high capacity to react to unforeseen events or specific business needs, such as the increase in purchases in online shops or the management of growing waves of customer queries. In addition, this technology provides access to tools that are easy for companies to implement and easy for employees to use. Cloud solutions allow innovation and adaptation to change with ease, incorporating tools that adjust to the new context, in a short time and without increasing costs.

The high level of scalability and adaptability in the face of new challenges affecting businesses, as well as the cost reduction it offers, are some of the values that make the cloud a guarantee of continuity for organisations in a complicated scenario such as that of COVID-19.
Experts predict that the coronavirus will have an impact of around 2.7% on the technology sector. It is logical that spending on technology will decrease, as the pandemic is causing a global economic slowdown like never before. The standstill also affects planned investments, which are being halted or even cancelled. Buyers are rapidly cutting back on spending in the face of declining revenues and uncertainty. Software, however, will be a segment that will grow very significantly, driven mainly by investments in the cloud, considered key to implementing response measures or ensuring continuity of operations.
Together with the growth in demand for cloud infrastructure services, experts point to possible increases in spending on specialised software, communications equipment and telecommunications services for work and distance learning. From different platforms, it is indicated that, when the crisis ends, teleworking in Spain will continue to grow. If this crisis has served any purpose, it is to boost the capacities of organizations for work and education in remote mode, as has been seen in millions of homes in Spain during these days.

When this terrible situation passes, which will sooner or later, the cloud sector will emerge strengthened from the crisis, having demonstrated its advantages for many companies in very different sectors of activity and having confirmed its capacity to help maintain business operations, playing a crucial role in the continuity of companies and their workers and contributing enormous value to the economy.


Written by Javier de la Cuerda, Enimbos CEO and published in Sector Ejecutivo magazine.

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