Benchmark International

Digital tools have been advancing in business operations for years, but today they have become essential for most companies, especially since the onset of the COVID-19 pandemic. The global crisis forced businesses to find ways to connect their employees to each other and their customers without being in person. This storyline became so prevalent that, in the first year of the pandemic, 60% of businesses moved their workforces to the cloud. Two years later, this number continues to increase.

Such demand for rapid digitalization has become a key driver of M&A deals, and continues to create more opportunities for growth and transactions. As a result, many organizations are also adopting tools to facilitate the M&A process on more digital terms. These tools include data and analytics during due diligence, platforms that support fast-moving transactions, and cloud-based services. You can take a deeper dive into the facets of post-COVID due diligence here.

The cloud is vital to remote data access, storage, and remote operations that ensure business continuity and lower the risk of disruption. The pandemic was a wake-up call for the business world regarding the uncertainties of the future and the downsides of not being prepared. During the pandemic, clear evidence emerged that businesses with solid cloud capabilities performed better than those that did not. Many companies have accelerated their cloud adoption across all industries for these reasons. It is estimated that the public cloud computing market will be worth $800 billion by 2025, growing at a compound annual growth rate (CAGR) of 17.5%.

Another advantage of cloud adoption is that it can help increase business valuations in M&A deals. This is because the transition period can be more easily managed and seamless, and cybersecurity is less of a due diligence concern. It also makes it easier to scale the business, and reduce reinvestment needs. Additionally, it can ensure a more successful transaction. You can learn more about increasing the likelihood of a successful merger or acquisition here.
The Many Business Benefits of the Cloud

Remote Working
For years, the bigger corporations have used the practice of remote working. But when COVID-19 hit, the value of remote working was fully realized as workforces worldwide were forced to work from home under lockdowns and social distancing rules. Companies that already had remote working and cloud-based capabilities in place could sustain operations under such significant changes in the day-to-day. New virtual tools were widely adopted, such as Zoom, Microsoft Teams, and Google Meet for virtual meetings. Zoom saw a 100% increase in revenue due to the sudden demand for its platform. Since then, most businesses have seen the benefits of having this capability already in position. The need to get it done quickly has driven M&A activity, both between tech and non-tech companies.

Operating Costs
The cost of operating data centers on-site and buying and maintaining software and hardware can be quite expensive. However, cloud computing means that companies don’t need to worry about these added costs so that they can focus on other aspects of operations.

Continuity
Having data stored in the cloud can be accessed from anywhere. This means there is less disruption in operations when staff can still get what they need from wherever they are. You no longer need to be in the physical office to do your job. Companies that already had strong infrastructure set up before the pandemic were able to continue to function, while other businesses were struggling to keep up. Now, everyone wants to be sure that they are fully prepared for whatever might come next.

Cybersecurity
In cloud computing, the infrastructure belongs to and is managed by the cloud provider. Security is always a serious and legitimate concern. Traditionally, many smaller companies do not take optimal measures regarding their own security simply because it is not their area of expertise. They tend to lack a solid understanding of cyber threat intelligence. But cloud providers must ensure that their clients’ data and files are secure. For this reason, they treat cybersecurity as a key priority because it is so crucial to continuing their business and maintaining their reputation as a safe, quality choice for businesses. They use the latest security policies and services, and they make it simpler to meet government compliance rules. And cloud adoption has been proven to significantly improve security for companies that use it. Cybersecurity is also an important factor in M&A due diligence. Learn more about why right here.

Collaboration
Collaboration is important in any business that has more than a few employees. Collaboration means being connected, and the cloud makes this much easier. Team members can meet virtually, easily share and exchange information, and do everything securely and seamlessly, even from different parts of the world. Engaging with each other is simple, and accessing company information can be done anywhere.

Scaling
Cloud infrastructure allows businesses to scale their IT resources in a more efficient manner depending on what the company needs. It is an excellent solution for companies whose needs change frequently. The cloud makes scaling easier and more cost-efficient than having to constantly adapt physical infrastructure and deal with the associated maintenance issues. This offers yet another business advantage for firms that opt for the cloud.

The Types of Clouds

Private Cloud
The private cloud uses infrastructure that is dedicated to one company, offering more control over security and data because it is managed internally. This kind of cloud can be hosted either internally or externally. This type of cloud is a good fit for companies that have elevated security demands and the need for high uptime.

Public Cloud
The public cloud offers hosting with cloud services delivered via a network for public use under shared infrastructure. Clients have no control over where the actual infrastructure is located. The cost can be free or in the form of a license policy that charges per user. Public clouds are ideal for companies that need to manage the host applications.

Hybrid Cloud or Multi-cloud Strategy
A hybrid cloud uses both private and public clouds that can stay separate from each other. It can be managed internally, or externally. A multi-cloud strategy is an excellent choice to address scalability, flexibility, and security. Data shows that use of the multi-cloud will be nearly 100% in 2022.

Community Cloud
This cloud-computing model is a modernized form of a private cloud. Infrastructure is shared by different organizations in a sector or community that shares objectives such as security or compliance. It may be managed internally or by a third-party provider. The community cloud can also be hosted internally or externally.

Americas: Sam Smoot at +1 (813) 898 2350 / Smoot@BenchmarkIntl.com

Europe: Michael Lawrie at +44 (0) 161 359 4400 / Enquiries@BenchmarkIntl.com

Africa: Anthony McCardle at +27 21 300 2055 / McCardle@BenchmarkIntl.com 

ABOUT BENCHMARK INTERNATIONAL

Benchmark International’s global offices provide business owners in the middle market and lower middle market with creative, value-maximizing solutions for growing and exiting their businesses. To date, Benchmark International has handled engagements in excess of $8.25B across various industries worldwide. With decades of global M&A experience, Benchmark International’s deal teams, working from 14 offices across the world, have assisted thousands of owners with achieving their personal objectives and ensuring the continued growth of their businesses.

Website: http://www.benchmarkintl.com
Blog: http://blog.benchmarkcorporate.com

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