Why every business should consider cloud computing
All of the technology and business contacts I regularly talk to keep talking about cloud computing. But what is it, what does it really mean for business and what are the financial and physical upsides?
Cloud means Internet. The computing happens on the Internet – in place of the software you use running on your computer, it’s hosted on the Internet on a server located in a data centre usually staffed by people who are adept in managing technology. This type of “cloud” software is commonly known as “on demand” or Software as a Service (SaaS).
Some good examples of popular Software as a Service are:
Web based CRM Software (Customer Relationship Management) – Salesforce.com pricing around $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 3 substantial benefits for every business here:
Time, cost savings and reliability
Businesses don’t require a dedicated information technology professional to help them choose, bed in and monitor the hardware and software infrastructure thus lowering operating expenses and time to implement. The effort of regularly backing up data is taken away as this is normally an inherent feature of the “cloud” software. Cloud software “operators” often have stand by systems that can be deployed in seconds should a significant failure occur.
Easier selection and wider choice
Through the ubiquitous web browser, businesses now have instant access to a huge range of software packages they can in most cases immediately evaluate and effectively work out if the software fits their needs at minimal expense. This makes it very easy for managers in large concerns to circumvent the usual information technology procurement processes and easily test and justify their business case.
Better user experience
The web provides immediate feedback to software vendors and has driven significant progress in user interface design resulting in more intuitive systems in turn improving learning times and improving user satisfaction. This of course means quicker adoption and better productivity.
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