Final answer:
Companies utilize cloud storage solutions for the convenience of accessing files anywhere, easy sharing with real-time updates, improved team collaboration, and economies of scale leading to cost savings and operational efficiency.
Step-by-step explanation:
The question inquires about why companies utilize cloud storage solutions like Amazon Web Services and Microsoft Azure. Primary factors include the ease of accessing files from any device and the simplified sharing process, as changes to documents are automatically saved and updated. Another reason is the efficiency in collaboration provided by these cloud services, which offer features such as file sharing, chat, video conferencing, and task organizing, enhancing the productivity of teams.
Firms are prompted to use cloud storage also because it offers significant economies of scale, similar to Amazon's use of large, low-cost warehouses that use automation for inventory management. This results in lower average costs per sale and reduced expenses on physical space, as seen with traditional bookstores. By leveraging cloud storage, companies can achieve greater efficiency and cost savings while improving overall operational flexibility.