Every business owner and journalist 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 physical benefits?
Cloud means Internet. The computing is done on the Internet – in place of the software you use running on your desktop pc, it’s hosted on the Internet on a server located in a data centre commonly staffed by people who are skilled in managing technology. This type of “cloud” software is often referred to as “on demand” or Software as a Service (SaaS).
Some well known 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 around $99 per user/month.
There are three major benefits for every business here:
Time, cost savings and reliability
Businesses no longer need a dedicated IT professional to help them procure, commission and maintain the systems infrastructure thus cutting operating costs and time to deploy. The effort of continuosly backing up data is removed as this is often an inherent function of the “cloud” software. Cloud software “operators” normally have redundant systems that can be turned on in a very short amount of time should a disruptive problem occur.
Easier selection and more choice
With just a web browser, businesses now have instant access to a huge range of software packages they can in the majority of cases immediately evaluate and quickly assess if the software meets their needs at zero cost. This makes it effective for employees in large concerns to by pass the standard information technology purchasing processes and easily evaluate and prove their business case.
Superior user experience
The net provides instant feedback to application vendors and has led to amazing progress in user interface design resulting in more intuitive software in turn reducing learning times and improving user satisfaction. This of course means faster adoption and higher productivity.
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