Benefits of Cloud Computing To Growing Small Companies

Benefits of Cloud Computing 

During its early years, a lot of business owners believed that Information Technology is just a financial liability and not an asset of the company. Most of them settled for the least expensive alternative because they believed that the company will still benefit if they chose the alternative. However, things have changed nowadays. IT is now being recognized by a lot of entrepreneurs as a great tool in their business process.

Some of these companies rely on in-house IT infrastructure because they believe they can better control circumstances. When they have control, these companies do not have to depend on third-party suppliers. Neither are they bound with long term contracts. Outsourcing IT work to cloud computing suppliers may pose some complications. That’s why a business owner must always exercise great care in signing contracts. Technology often changes rapidly thus it pays to investigate if the company’s chosen supplier has the capabilities to keep pace with these changes.

Another great concern with cloud computing is security. Thus, choosing the right supplier is really significant for small business owners. The cloud computing vendor must not only have the necessary track record but must also exhibit proven skill through client references or certifications. For entrepreneurs, it is best to request a trial period before finally agreeing on a long term contract. This way, the company can ascertain if the supplier’s services meet its criteria. A legitimate and experienced supplier will readily agree with a trial period. In general, the company must be able to compare the cloud computing software performance with its set objectives. If the supplier’s service does not meet the established objectives then it can be penalized.

A small business which decides to own and manage its own IT equipment may think such decision can’t harm the company. It fails to recognize that over time, these equipments and their components will begin to deteriorate thus causing the system to crash or experience latency. This may pose a bigger problem if the company has remote users and satellite offices. Without much thought, an entrepreneur will surely put in more money by upgrading its equipments and adding extra redundancy. He may even hire additional IT support personnel. The cycle will truly become vicious as new equipments will depreciate and break down after a couple of years.

An entrepreneur can settle for a cloud computing service for better forecasting of an IT budget. In general, IT eats up a huge part of the company’s budget not only because of the costly equipments but its maintenance and upgrade costs as well. Upgrades, security threats, and unexpected system crashes often cost a lot of money. With cloud computing, all these IT capital investments and expenses are borne by the third-party supplier. The business owner will just have to budget for the system’s monthly subscription fees per user. There is also no need to invest on IT in anticipation of a future demand because cloud computing can be deployed when needed.

Cloud computing simplifies budgeting. The business owner need not worry about merging projects or complex expansion because he only needs to pay for the resources his company uses. Also, when users are reduced, the accompanying cloud computing costs are reduced also. The traditional IT process of procurement, installation, management, protection, and support of an on-premise system can be a vicious cycle and contradicts the company’s goal of reducing recurring expenses. Cloud computing services and resources are used only when needed which greatly reduce recurrent expenditures and leverage the company in adapting to frequently evolving conditions of the market.

With cloud computing, a business owner can better manage uncertainties. He exposes his company to greater risks if he invests a lot of money on IT. Because of growing demand, a lot of businesses overinvest in Information Technology which eventually increases expenses and uncertainties of IT management and maintenance. Cloud computing vendors reduce the company’s reliance on on-premise IT systems thereby assuming the uncertainties and costs of IT support, security, backups, and hardware. The business owner, therefore, has no more liability in procurement, management, and upgrade of IT equipments. Growth opportunities can then be pursued without having to bear the uncertainties of important capital outlays.

Cloud computing also reduces energy costs because the company has less IT equipment to maintain. IT servers require specific temperatures to run perfectly. When a business owner decides to use cloud computing services, energy bills are reduced because expensive IT equipments are moved to a safe, monitored, and disaster-proof IT center.

When on-site IT problems arise, it is but expected that employee productivity is affected. Because of this, stress levels are elevated. With cloud computing, employees can do their work anywhere and anytime they wish. They can work from home by accessing the software through internet connection. Travel time and costs are significantly reduced. Employee morale is even improved. Each employee who is given access to the software can even ask the cloud computing supplier’s team for support with regards to the problems which may arise while he is using the system. Management can even monitor remotely each employee’s activity through the management consoles provided by the supplier.

Huge multinational companies have moved to cloud computing because it is less costly, efficient, and agile as compared to onsite IT systems. Therefore, small and medium scale enterprise must follow suit. If cloud computing works for these big enterprises, it will surely work for SMEs.

By Glenn Blake

About Glenn Blake

Glenn Blake is a writer for CloudTweaks and has been writing about technology trends for over 25 years.

Find out more
View All Articles

One Response to Benefits of Cloud Computing To Growing Small Companies

  1. Security seems to be the number one concern when small businesses consider shifting their functions over to cloud computing. I think its the idea of sharing space containing sensitive information with so many unknown entities. A secure co-location provided by <a href = “http://www.mtinc.net/managed-it-services.html”>managed IT</a> services is a good compromise between the low cost benefits of cloud computing and the security of a private server.

Comic
When Sci-Fi Predictions Come To Fruition

When Sci-Fi Predictions Come To Fruition

Evolution of Technologies To paraphrase science fiction author Arthur C. Clark, those who make predictions about the future are either “considered conservative now and mocked later, or mocked now and proved right when they are no longer around to enjoy the acclaim.” The one thing we can be sure about, Clark ventured, is that “[the…

Facebook Hopes To Extend Internet Connectivity With Solar-Powered Drones

Facebook Hopes To Extend Internet Connectivity With Solar-Powered Drones

Facebook Inc (FB.O) said on Thursday it had completed a successful test flight of a solar-powered drone that it hopes will help it extend internet connectivity to every corner of the planet. Aquila, Facebook’s lightweight, high-altitude aircraft, flew at a few thousand feet for 96 minutes in Yuma, Arizona, Chief Executive Mark Zuckerberg wrote in…

When Will Women In Tech Become The Norm?

When Will Women In Tech Become The Norm?

Tech Diversity It is well known that the technology industry has been dominated by men, but it is also clear that the industry is working to change that. Diversity in the tech industry, especially where it applies to women in tech, has been a topic of discussion for years. Recently the Washington Technology Industry Association…

Four Keys For Telecoms Competing In A Digital World

Four Keys For Telecoms Competing In A Digital World

Competing in a Digital World Telecoms, otherwise largely known as Communications Service Providers (CSPs), have traditionally made the lion’s share of their revenue from providing pipes and infrastructure. Now CSPs face increased competition, not so much from each other, but with digital service providers (DSPs) like Netflix, Google, Amazon, Facebook, and Apple, all of whom…

Edtech and Virtual Reality – Exciting Learning Environment

Edtech and Virtual Reality – Exciting Learning Environment

Customizing Edutech Customized edtech learning solutions are becoming more commonplace as the education industry recognises their potential and begins transforming the traditional structures so as to incorporate innovative developments. From textbooks to tablets, chalkboards to virtual reality, edtech promises not only dynamic and exciting learning environments but better learning strategies and solutions. Virtual Reality and…

Four Keys For Telecoms Competing In A Digital World

Four Keys For Telecoms Competing In A Digital World

Competing in a Digital World Telecoms, otherwise largely known as Communications Service Providers (CSPs), have traditionally made the lion’s share of their revenue from providing pipes and infrastructure. Now CSPs face increased competition, not so much from each other, but with digital service providers (DSPs) like Netflix, Google, Amazon, Facebook, and Apple, all of whom…

Multi-Cloud Integration Has Arrived

Multi-Cloud Integration Has Arrived

Multi-Cloud Integration Speed, flexibility, and innovation require multiple cloud services As businesses seek new paths to innovation, racing to market with new features and products, cloud services continue to grow in popularity. According to Gartner, 88% of total compute will be cloud-based by 2020, leaving just 12% on premise. Flexibility remains a key consideration, and…

The Fully Aware, Hybrid-Cloud Approach

The Fully Aware, Hybrid-Cloud Approach

Hybrid-Cloud Approach For over 20 years, organizations have been attempting to secure their networks and protect their data. However, have any of their efforts really improved security? Today we hear journalists and industry experts talk about the erosion of the perimeter. Some say it’s squishy, others say it’s spongy, and yet another claims it crunchy.…

Despite Record Breaches, Secure Third Party Access Still Not An IT Priority

Despite Record Breaches, Secure Third Party Access Still Not An IT Priority

Secure Third Party Access Still Not An IT Priority Research has revealed that third parties cause 63 percent of all data breaches. From HVAC contractors, to IT consultants, to supply chain analysts and beyond, the threats posed by third parties are real and growing. Deloitte, in its Global Survey 2016 of third party risk, reported…

The Rise Of BI Data And How To Use It Effectively

The Rise Of BI Data And How To Use It Effectively

The Rise of BI Data Every few years, a new concept or technological development is introduced that drastically improves the business world as a whole. In 1983, the first commercially handheld mobile phone debuted and provided workers with an unprecedented amount of availability, leading to more productivity and profits. More recently, the Cloud has taken…

5 Ways The Internet of Things Will Drive Cloud Growth

5 Ways The Internet of Things Will Drive Cloud Growth

5 Ways The Internet of Things Will Drive Cloud Growth The Internet of Things is the latest term to describe the interconnectivity of all our devices and home appliances. The goal of the internet of things is to create universal applications that are connected to all of the lights, TVs, door locks, air conditioning, and…

Cloud Computing Is Greener Than You Think

Cloud Computing Is Greener Than You Think

Cloud Computing Is Greener Than You Think Last week we touched upon how a project in Finland had blended two of the world’s most important industries, cloud computing and green technology, to produce a data centre that used nearby sea water to both cool their servers and heat local homes.  Despite such positive environmental projects, there…

15 Cloud Data Performance Monitoring Companies

15 Cloud Data Performance Monitoring Companies

Cloud Data Performance Monitoring Companies (Updated: Originally Published Feb 9th, 2015) We have decided to put together a small list of some of our favorite cloud performance monitoring services. In this day and age it is extremely important to stay on top of critical issues as they arise. These services will accompany you in monitoring…

The Future of M2M Technology & Opportunities

The Future of M2M Technology & Opportunities

The Future Of The Emerging M2M Here at CloudTweaks, most of our coverage is centered around the growing number of exciting and interconnected emerging markets. Wearable, IoT, M2M, Mobile and Cloud computing to name a few. Over the past couple of weeks we’ve talked about Machine to Machine (M2M) such as the differences between IoT and…

Cloud Infographic: IoT For Automotive Deconstructed

Cloud Infographic: IoT For Automotive Deconstructed

IoT For Automotive Deconstructed The IoT automotive industry is moving rapidly with many exciting growth opportunities available. We’ve written about some of the risks and benefits as well as some of the players involved. One thing for certain as that the auto industry is starting to take notice and we can expect the implementation of a…

Protecting Devices From Data Breach: Identity of Things (IDoT)

Protecting Devices From Data Breach: Identity of Things (IDoT)

How to Identify and Authenticate in the Expanding IoT Ecosystem It is a necessity to protect IoT devices and their associated data. As the IoT ecosystem continues to expand, the need to create an identity to newly-connected things is becoming increasingly crucial. These ‘things’ can include anything from basic sensors and gateways to industrial controls…