Migration to the Cloud: how Ukrainian businesses can survive blackouts, cyber threats and reduce costs

In his article for The Page, the founder and CEO of Innoware, Dmytro Popinako, explained how cloud technologies can not only support the competitiveness of Ukrainian businesses, but also open up new opportunities for them in times of war, power outages, and constant cyber threats.

Many companies face the challenges of adapting to the rapidly changing technological environment, where constant infrastructure updates, data security assurance, and cost reduction are essential. Ukrainian businesses are confronted with additional challenges such as blackouts, damage to critical infrastructure, and the ongoing risk of cyberattacks, which threaten business continuity and data integrity. According to the IBM Cost of a Data Breach 2023 report, the average cost of a cyberattack for companies worldwide in 2023 was $4.45 million. This is the highest figure in the 18 years the research has been conducted.

How to overcome these challenges and remain competitive? The answer to this question lies in cloud technologies, which offer many new opportunities for businesses to work effectively and develop. How exactly do these solutions help businesses adapt to current challenges and why are they so popular?

Evolution of Cloud technologies

The first cloud services of the late 90s and early 2000s allowed users only to store photos or documents online and access them from any device, anywhere in the world. Today, cloud services have significantly expanded their capabilities and now help businesses automate routine tasks or streamline operations across all departments through enterprise resource planning (ERP) systems.

Cloud technology has an immediate positive impact, as 80% of companies experience operational improvements within a few months of implementation. For example, employees can edit documents, participate in video conferences, process orders and analyze data – all within one system that works regardless of where the team is geographically located and whether someone is using a laptop, tablet, or smartphone.

The scalability offered by cloud solution providers today has become a significant advantage for businesses. Companies like Microsoft and Amazon invest billions of dollars in expanding their data centers and upgrading their equipment. For example, some servers are now located directly in the ocean to ensure efficient cooling and reduce energy costs. These solutions are more environmentally friendly and can help reduce humanity’s carbon footprint in the long term.

Cost reduction and flexibility

Using cloud solutions reduces the need for physical IT infrastructure, cutting capital expenses by 35-40%. By moving critical business processes to the cloud before an equipment upgrade is needed, a company can avoid significant costs on unnecessary new hardware. Companies also report that using cloud solutions saves up to 50% on disaster recovery and data backup costs.

Platforms like Microsoft 365 and Microsoft Dynamics 365 offer subscriptions that include all necessary updates, making their cost transparent and predictable. Moreover, they allow to combine several functions into one system. While companies previously used separate tools for email, text editing, spreadsheets and management of sales, procurement, inventory, manufacturing, etc., now all these features are available within a single cloud platform. This reduces the cost of integrating and supporting different systems.

Security – why trust the Cloud?

Data security is one of the biggest challenges for modern companies. Small businesses typically can only afford basic measures, such as antivirus and one cybersecurity specialist. In contrast, cloud providers have large teams that continuously improve security and respond to threats. They also use advanced encryption methods during data transmission, ensuring that no unauthorized users can access your personal and corporate information.

This gives even small businesses access to advanced security level they could not afford on their own. Global experience shows that 94% of companies that have migrated to cloud technologies report improved online security.

Additionally, cloud providers have backup data storage in different geographical areas, protecting information from physical threats or disasters. For example, if one data center loses its ability to operate due to unforeseen circumstances or disasters, data is automatically restored from backup copies stored worldwide, ensuring uninterrupted system functionality.

Technological advancements with AI

Artificial Intelligence (AI) is unlocking new opportunities for businesses, but its implementation requires significant computational resources. Cloud platforms, with their immense capabilities, are becoming the main infrastructure for working with AI. According to the IBM Global AI Adoption Index 2022, 35% of companies are already using AI in business, while another 42% are exploring its potential application.

Companies can avoid significant upfront investments in their own infrastructure by renting capacity in the cloud. It is especially beneficial for startups or small teams. Cloud platforms such as Amazon Web Services (AWS), Google Cloud Platform (GCP), and Microsoft Azure provide access to powerful graphics processing units (GPU) and tensor processing units (TPU) that are specifically optimized for AI tasks. For instance, when training large AI models, it is possible to quickly scale up the number of servers and capacity, then reduce costs once the process is complete.

Ecosystems

Among cloud technology providers, Microsoft offers the most comprehensive approach. Their solutions integrate the operating system, word processors, spreadsheets, CRM and ERP systems into a single ecosystem. This approach significantly simplifies business process management and reduces the cost of integrating separate platforms. For example, tools like Word, Excel, Power BI and Dynamics 365 are fully compatible, making them a versatile choice for companies of any size.

Innovative technologies such as Data Lakes and Dataverse further expand the capabilities of the cloud. Data Lakes enable companies to process massive volumes of data, providing quick access to information and building interfaces between systems. Dataverse simplifies data integration from different applications, contributing to the creation of a unified digital infrastructure.

Game-changing Clouds

Cloud technologies have evolved from a technological breakthrough over two decades ago to what Gartner, a leading global consulting and research firm in the IT sector, predicts will become a mandatory component for maintaining business competitiveness by 2028. The cloud is about security, flexibility, cost savings, and access to the latest technologies. It enables faster innovation, management of large data volumes, process automation, backup of extensive data sets, and flexible resource scaling.

Over the past few years, especially after the full-scale invasion in 2022, Ukrainian companies have increasingly migrated to cloud solutions that cover key needs, such as cybersecurity and business continuity. The war has created conditions where security, availability, and flexibility became priorities. Most clients are now aware of the benefits of the cloud and are ready to make this migration.

Original article: Як українському бізнесу пережити блекаути, кіберзагрози та знизити витрати | The Page