How Cloud Computing is Benefiting Car Dealerships

January 22, 2018 Off By Hoofer
The roots of cloud computing can be traced back to the 1950s. Not much was known about cloud computing or the revolutionary nature of what it offered back then. Fast forward to today and cloud computing has infiltrated every sphere of life for businesses around the world. Many businesses that exist today would not have had a chance if they were founded before the emergence and dominance of the cloud-computing phenomenon. By embracing the cloud, businesses can reduce the costs of buying and maintaining hardware.

Automobile Industry and Cloud Computing

Like other industries, the automotive industry has not been left out in this revolution of the business process. The last few years have seen drastic changes in the automotive industry. What’s more, there is enough evidence to suggest that the trend will continue into the near future, for as long as cloud computing continues to transform the business process.

Car dealerships in particular have benefited immensely from cloud technologies. Companies like who explain to their readers how to buy ATVs are well aware of how car dealerships are using cloud computing to increase sales and reduce operational costs. Here are some of the ways that car traders are benefiting from using cloud computing and related technologies.

Reducing Operational Costs

Buying, using and maintaining IT hardware can take a toll on a business, especially if it is a startup with limited capital. The hardware costs a lot to buy and maintain, requiring IT experts to be onsite, consuming a lot of power, thereby driving power costs to the roof. A car dealership that employs cloud-computing technologies reduces its operational costs.

Unlike onsite IT hardware, cloud computing uses remotely located servers whose maintenance costs are not your responsibility. In addition, the cost of keeping the entire infrastructure usable and up to date falls on the cloud computing service provider. A startup car dealership will have a chance to grow because it pays for cloud-computing services based on its size, and it can scale up with ease as it gets more business.

It Has Brought with It The Internet of Things (IoT)

Car dealerships of the future will have to answer questions like, "how can I talk to my car?" or "how can I check the state of my car engine without leaving the house?" The answers to these questions lie in IoT. Because of the tremendous amounts of data the IoT brings, using onsite computer resources is impractical.

Car traders who want to offer vehicles with the capabilities that the IoT makes available will have to invest in cloud computing technologies. In addition, car dealerships can no longer afford to approach car trading with the old mindsets. As cloud computing and IoT disrupt the old car selling business model, opportunities will emerge that are hard to imagine today. With self-driving cars and technologies that can remotely operate a vehicle already in existence today, there is no telling what opportunities the future holds for the automobile industry.

Many car dealerships today have mobile apps that their customers can use to get up to speed with the trends in the automotive industry, get advice on challenges they may be facing with their cars and information about the state of their vehicles. What’s more, technicians can now diagnose a car’s problems remotely via these apps, spelling doom to those car dealerships resistant to change.

The future belongs to car dealerships that will be quick to figure out what changes cloud computing has brought to the automotive industry and how these changes can benefit their business model.