Why business should not ignore cloud computing
Every business owner and journalist I know is talking about the advantages of cloud computing. But what is it, what is the impact on business and what are the monetary and physical benefits?
Cloud means Internet. The computing takes place on the Internet – instead of the software you use executing on your computer, it runs somewhere 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 sometimes called “on demand” or Software as a Service (SaaS).
Some successful examples of well established 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 approximately $99 per user/month.
There are three substantial benefits for every business here:
Time, cost savings and reliability
Businesses no longer need a permanent systems professional to help them choose, install and support the technology platform thus pushing down operating expenses and time to get operational. The effort of regularly backing up information is removed as this is usually an inherent function of the “cloud” software. Cloud software “operators” normally have stand by systems that can be switched on in instantly should a serious problem occur.
Easier selection and wider choice
With just a web browser, businesses now have instant access to hundreds of applications they can in the majority of cases immediately test and quickly establish if the software fulfils their needs at zero cost. This makes it straightforward for employees in large enterprises to by pass the standard information technology procurement processes and easily evaluate and justify their business case.
Better user experience
The web provides immediate feedback to application developers and has led to substantial progress in user interface design resulting in easier to use systems in turn lowering learning times and increasing user satisfaction. This of course means faster adoption and higher productivity.
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