The business benefits of cloud computing
All of the technology and business people I regularly talk to keep mentioning cloud computing. But what is it, what is the impact on business and what are the monetary and obvious upsides?
Cloud means Internet. The computing takes place on the Internet – in place of the software you use executing on your desktop pc, it’s hosted on the Internet on a server installed in a data centre commonly staffed by people who are proficient in managing technology. This type of “cloud” software is sometimes called “on demand” or Software as a Service (SaaS).
Some best of breed examples of popular Software as a Service are:
Web based CRM Software (Customer Relationship Management) – Salesforce.com pricing about $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 substantial benefits for every business here:
Time, cost savings and reliability
Businesses no longer require a resident systems expert to help them procure, bed in and look after the hardware and software infrastructure thus decreasing operating expenses and time to implement. The effort of vigilantly backing up data is eradicated as this is almost always an inherent feature of the “cloud” software. Cloud software “operators” often have redundant systems that can be brought to bear in minutes should a catastrophic issue occur.
Easier selection and wider choice
With just a web browser, businesses now have 24/7 access to a big selection of business software they can in the majority of cases immediately test and quickly assess if the software fits their needs at minimal expense. This makes it effective for innovators in large businesses to circumvent the restrictive information technology procurement processes and easily assess and prove their business proposal.
Better user experience
The cloud provides instant feedback to software makers and has led to substantial 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.
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