The business benefits of cloud computing
Wednesday, July 15th, 2009
Every business person and technology 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 happens on the Internet – in place of the software you use running on your desktop pc, it’s hosted on the Internet on a server installed in a data centre commonly staffed by people who are experts in managing technology. This type of “cloud” software is sometimes called “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 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 about $99 per user/month.
There are 3 key benefits for every business here:
Time, cost savings and reliability
Businesses do not require a resident systems professional to help them identify, implement and monitor the technology infrastructure thus pushing down operating expenses and time to get operational. The burden of constantly backing up data is taken away as this is normally an inherent feature of the “cloud” software. Cloud software “operators” normally have redundant systems that can be deployed in a very short amount of time should a catastrophic problem occur.
Easier selection and wider choice
Through the ubiquitous web browser, businesses now have 24/7 access to hundreds of applications they can in most cases immediately test and effectively determine if the software fits their needs at no cost. This makes it effective for employees in large corporations to circumvent the usual information technology purchasing processes and easily evaluate and justify their business case.
Superior user experience
The internet provides immediate feedback to software makers and has fuelled significant progress in user interface design resulting in easier to use systems thus improving learning times and increasing user satisfaction. This of course means faster adoption and higher productivity.