ICG Linking IT to business success
The cloud gathers around ambitious SMBs
     

By Jeremy Cooper | Mar 29 2010

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IT is an essential part of almost every business, but whether those businesses are small or large, IT is often dogged by the same challenges. They are forced to spend most of their time simply “keeping the lights on” – with little resource or budget to focus on innovation in the business. But those days could soon be history. There is a lot of buzz around ‘cloud computing’, and rightly so because no single approach to technology has ever so clearly set out a path towards powerful computing tools delivered with none of the traditional management cost and complexity associated with on premise IT infrastructure. It is the closest we have seen yet to IT that ‘just works’. And with businesses looking to do more for less right now, we have seen rapid adoption of cloud computing.

For smaller businesses the benefits could be felt immediately

Small companies can benefit a great deal from the use of technology but often don’t want to invite the extra cost or management headache in-house. As such, SMBs hold back from investing in tools that could transform their business. Often that reticence is reinforced by experiences of buying technology that hasn’t delivered the expected value.

A first major benefit of cloud computing is that the need for infrastructure and therefore upfront capital expense is greatly reduced. To run business applications many companies would previously have needed high-spec PCs and servers running the applications in-house. Internal networks would also need investment and management. However, cloud applications require little more than an internet connection and can even work wirelessly on devices such as iPhones and BlackBerrys.

In addition, with cloud computing, small businesses do not have to pay the maintenance streams they incur with legacy client vendors that seldom offer innovation. Cloud computing applications and platforms ensure that innovation is constantly delivered at modest operating expenses, a benefit that is increasingly important in times like these.

Speed is also a concern to small companies, especially when it comes to reacting quickly to opportunity or obstacle. Through cloud computing, speed to deployment can in theory be as quick as signing up for any service online. It certainly needn’t take weeks or months of installing and configuring software as was often the case with traditional, legacy on-premise software. Real-time multitenant cloud computing offers small companies the critical advantage of being nimble and quick to respond. It allows them to scale up or down immediately, rather than the months with traditional on-premise software vendors.

Also, because software delivered as a service - in the cloud - can be switched off as easily as it is switched on, it means service providers are perpetually accountable and must continually deliver new innovation, features and customer service and support. It’s not the case that the salesman’s smile fades the second the customer hands over their money.

Know More:
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