Why business should not ignore cloud computing
Every business owner and newspaper editor I know is talking about the advantages of cloud computing. But what is it, what does it really mean for business and what are the financial and obvious upsides?
Cloud means Internet. The computing takes place on the Internet – instead of the software you use executing on your desktop pc, it runs somewhere on the Internet on a server located in a data centre commonly staffed by people who are proficient in managing technology. This type of “cloud” software is commonly known as “on demand” or Software as a Service (SaaS).
Some well known examples of popular 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 approximately $99 per user/month.
There are a number of significant benefits for every business here:
Time, cost savings and reliability
Businesses don’t require a dedicated systems expert to help them procure, commission and manage the hardware and software infrastructure thus lowering operating expenses and time to get operational. The task of continuosly backing up data is taken away as this is often an inherent feature of the “cloud” software. Cloud software “operators” often have redundant systems that can be turned on in seconds should a major issue occur.
Easier selection and more choice
Through the ubiquitous web browser, businesses now have instant access to hundreds of software packages they can in the majority of cases immediately appraise and swiftly work out if the software suits their needs at minimal expense. This makes it very easy for people in large enterprises to by pass the standard information technology purchasing processes and easily evaluate and justify their business proposal.
Better user experience
The web provides rapid feedback to application architects and has led to substantial progress in user interface design resulting in more intuitive software thus improving learning times and improving user satisfaction. This of course means faster adoption and higher productivity.
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