Every business owner and journalist I know is talking about the benefits of 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 is done on the Internet – instead of the software you use being installed on your computer, it runs somewhere on the Internet on a server installed in a data centre usually staffed by people who are adept in managing technology. This type of “cloud” software is often referred to as “on demand” or Software as a Service (SaaS).
Some typical 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 around $99 per user/month.
There are a number of major benefits for every business here:
Time, cost savings and reliability
Businesses don’t need a dedicated information technology professional to help them identify, install and look after the systems infrastructure thus cutting operating expenses and time to implement. The effort of regularly backing up information is eradicated as this is usually an inherent feature of the “cloud” software. Cloud software “operators” normally have redundant systems that can be switched on in seconds should a catastrophic error occur.
Easier selection and wider choice
Through the ubiquitous web browser, businesses now have 24/7 access to a huge range of software packages they can in the majority of cases immediately test and rapidly assess if the software fulfils their needs at no cost. This makes it effective for managers in large corporations to by pass the common information technology buying processes and easily test and prove their business case.
Superior user experience
The internet provides rapid feedback to software developers and has driven significant progress in user interface design resulting in easier to use software thus lowering learning times and increasing user satisfaction. This of course means faster adoption and better productivity.