Cloud Logistics Software: Key Benefits of Migrating to the Cloud

by | Industry

Apr 1, 2020 | Industry

With the rise of remote work and heightened awareness of cybersecurity benefits, more companies are embracing cloud-based software solutions to enhance flexibility and security. And while moving a complex server infrastructure to the cloud may seem daunting, choosing the right partner can make all the difference. There are plenty of benefits of moving to the cloud, from cost savings and increased agility to greater workforce flexibility and security and more. In this article, we explore the key benefits of migrating to the cloud for freight forwarders and other logistics service providers. 

What is the cloud?

The cloud it is a term used to refer to software and technology services that are hosted on the internet. It allows users to access software, data, and other computing resources remotely from a computer or mobile device. Many companies use the cloud for their software solutions as it gives them more flexibility than traditional software solutions while drastically reducing IT costs. The cloud can be utilized by businesses of all sizes as well as individual users, giving everyone unprecedented access to software and tech services.

Key Takeaways

  • The cloud it is a term used to refer to software and technology services that are hosted on the internet and can be accessed remotely from a computer and/or mobile device. 
  • Migrating to the cloud has several benefits for freight forwarders, including increased agility, lower upfront costs, predictable monthly payments, better security, and more. 

How can freight forwarders migrate to the cloud?

There’s no question that moving to the cloud is a smart move for modern freight forwarders – and it’s easy to see why it’s become increasingly popular in recent years given the evolving demands of the industry.

How do you get started with a cloud logistics software migration? Ultimately, the process of migrating to the cloud requires careful consideration of each company’s unique requirements and existing software solutions. An inventory of any software and hardware should be taken to ensure compatibility with cloud solutions. Cost-benefit analysis should also be completed for the cloud solution that is being considered, including potential savings.

Data migration must be managed, software implemented and tested, security settings enabled, and any necessary training must be administered efficiently, before final utilization of the software solution is undertaken. With careful planning and implementation by experienced professionals, transitioning a business to the cloud, even one as complex as a freight forwarder, can have incredible advantages in terms of flexibility, scalability, speed, and cost-effectiveness.

What are the key benefits of migrating to the cloud?

Workforce Security
Being able to remotely manage a workforce securely is a key benefit of migrating to the cloud. With the ability to provide additional levels of security, including access control on mobile devices and identity management, the cloud enables you to seamlessly secure your data. 

Continuous Delivery
Hosting your data on the cloud not only ensures the data is frequently backed up, but also ensures high availability, security, and access to data by your teams at any given time, making collaboration easier. This ensures that although your workforce may be working from anywhere, your data always remains safe.

Disaster Recovery 
You never know when a disaster will strike, so keeping your data secure is a must. Storing your data in the cloud guarantees that data is always available and provides quick data recovery for all kinds of emergency scenarios, from natural disasters to power outages.

Having your important data stored in the cloud means your team is able to get faster updates without downtime.  Plus, the cloud provides the agility to scale up to meet storage and bandwidth capacity as needed.

Time and Money Savings
Cloud integration increases operational efficiencies, decreases the amount spent on technical workers and usually delivers savings on server and infrastructure capacity. 

Cloud Benefits

What are the potential risks of migrating to the cloud?

Migrating to the cloud presents several potential risks, including data security vulnerabilities, compliance issues, and potential downtime during the transition. Data security concerns stem from storing sensitive information on external servers, which may be targeted by cyberattacks. Compliance issues arise from varying international regulations on data storage and handling, which may require specific measures to meet legal standards. Additionally, the migration process can result in temporary service disruptions, affecting business operations until the transition is complete and systems are stabilized.

How long does the cloud migration process typically take?

The duration of the cloud migration process varies depending on the size of the business and the complexity of its existing infrastructure. For small to medium-sized enterprises, the process can take a few weeks to several months. Larger organizations with more complex systems may require several months to over a year to complete the migration. Key factors influencing the timeline include the amount of data to be transferred, the number of applications being migrated, and the need for integration with existing systems.

What steps should a company take to prepare for cloud migration?

To prepare for cloud migration, a company should start with a thorough data audit to assess which data and applications are suitable for the cloud. Choosing the right cloud provider is crucial, considering factors like service reliability, security measures, and cost. Additionally, it’s important to train staff on new cloud-based systems and processes to ensure a smooth transition. Developing a detailed migration plan that includes timelines, responsibilities, and contingency plans is also essential for minimizing disruptions.

What cost factors should be considered when migrating to the cloud?

When migrating to the cloud, companies should consider both initial and ongoing costs. Initial costs may include data transfer fees, setup charges, and potential expenses for upgrading hardware or software. Long-term costs include subscription fees for cloud services, which can vary based on usage, storage capacity, and the level of service required. Hidden costs, such as fees for exceeding storage limits, data retrieval, or additional security features, should also be factored into the overall budget to avoid unexpected expenses.

How does cloud migration impact data privacy and compliance?

Cloud migration can significantly impact data privacy and compliance, as businesses must ensure that their data handling practices meet regulatory requirements. Cloud providers often offer compliance certifications and robust security measures, but it is essential for businesses to verify these standards align with relevant laws and regulations, such as GDPR, HIPAA, or CCPA. Implementing strong access controls, encryption, and regular audits can help maintain data privacy and ensure compliance in a cloud environment.

Interested in a cloud-based logistics platform to modernize your supply chain business? Magaya has you covered.

Benefits of the Magaya Cloud include:

  1. Backup Recovery – Our team handles the backups, which run daily without you having to prompt it. Plus, we have redundancy systems in place to ensure your data is safe. 
  2. Keeps Data Secure – Not only do we ensure that your data is backed up, it’s also safe in case of a disaster. We work with secure data centers with high-reliability ratings, such as the SSAE 16 Type II compliance, in Tier III-rated facilities that have redundant power.
  3. Scales as You Grow – As your business grows, your needs from the cloud will also grow. Having your system running on the cloud allows for your team to forego the need for expensive extra servers and additional hardware costs. 
  4. Reliable Partner – The migration process is one that our Magaya Professional Services team has experience with and can help your business through this process.
  5. Latest Updates – Once connected, your organization can enjoy the latest updates that are pushed through without you needing to do anything. 

Are you ready to start your cloud migration? Contact us today to get started! 


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