Why business owners are turning to cloud computing
All of the technology and business contacts I regularly talk to keep mentioning cloud computing. But what is it, what is the impact on business and what are the financial and tangible benefits?
Cloud means Internet. The computing takes place on the Internet – in place of the software you use being installed on your desktop pc, it runs somewhere on the Internet on a server installed in a data centre usually staffed by people who are experts in managing technology. This type of “cloud” software is sometimes called “on demand” or Software as a Service (SaaS).
Some good examples of well established Software as a Service are:
Web based CRM Software (Customer Relationship Management) – Salesforce.com pricing approximately $9 per user/month.
Small business management and accounting software (small business ERP) – Salesorder.com pricing $45 per user/month.
Medium sized business ERP software – NetSuite pricing about $99 per user/month.
There are 3 major benefits for every business here:
Time, cost savings and reliability
Businesses don’t require a resident IT expert to help them procure, implement and support the hardware and software infrastructure thus pushing down operating expenses and time to get operational. The task of continuosly backing up data is eradicated as this is usually an inherent function of the “cloud” software. Cloud software “operators” almost always have fail over systems that can be brought to bear in a very short amount of time should a serious problem occur.
Easier selection and more choice
Through the ubiquitous web browser, businesses now have 24/7 access to a big selection of applications they can in most cases immediately appraise and swiftly decide if the software fits their needs at minimal cost. This makes it effective for managers in large concerns to by pass the usual information technology purchasing processes and easily test and prove their business case.
Superior user experience
The net provides rapid feedback to system architects and has fuelled amazing progress in user interface design resulting in easier to use systems in turn reducing learning times and increasing user satisfaction. This of course means faster adoption and better productivity.