If You Think Cloud, Think Small

If you think cloud, think small.

For years, the cloud industry has been suffering from megalomania. Big Data. Enterprise 2.0. Network as a Service. Sure, Fortune 1000 companies are flush with cash and have big tech departments who understand how to extract value from the cloud, but the experience shows that the ‘small cloud’ model can be just as profitable and provide necessary growth.

My company, Bitrix24, is a SMB 2.0 company, meaning we provide Enterprise 2.0-like services that are both in high demand from small businesses but appropriately priced for them. Despite the fact that our niche (enterprise social networking) is hypercompetitive and packed with billion dollar players: Jive Software, Yammer, TIBCO, SalesForce Chatter, Citrix and others; our Android app is more popular than either Tibbr or Jive, gets half as many downloads as Podio and is about 1/10 the size of Yammer and Chatter, quite an accomplishment for a solution that is barely one year old and entirely self-financed.

Google Apps, Analytics and Mail is another great example of SMB 2.0 thinking in action. Unlike ‘Big Data’, that starts with exabytes of data that only large companies possess, Google found a way to provide useful and actionable analysis to any web shop owner who may only get 100 visitors a day. Now, your average small business owner may claim that he or she doesn’t use any cloud services, but when Google Docs, Gmail or Hangout come up, chances are you’ll get a ‘yes’.

Of course, ‘small cloud’ is not without its challenges. First, you have to come up with something that’s genuinely useful to a small business, freelancer or a solo entrepreneur. Not only useful, but new or better than other solutions on the market, too. Second, your customer acquisition costs have to be very, very low, as you can’t pay for high-rolling sales reps, as your average contract is hundreds of dollars, not thousands or millions.

Naturally, you shouldn’t expect that small businesses will flock to your cloud, just because you offered it. But there are a few tricks that can speed up the process. First, freemium is a must. Humans are a risk-averse species, so being able to try the service before committing to a purchase helps a lot. Second, you need to put data owners in full control of their data – usually this means ability to export valuable data any time. There are just too many examples of cloud services that unexpectedly went out of business, taking all the data with them.

Finally, offering pricing flexibility helps. Consider different scenarios of product use and put the client in charge of deciding how much to pay. Offering ‘unlimited’ plan with a reasonable price helps too, as many folks still think that cloud and Saas simply a shrewd marketing ploy to keep charging forever.

Though challenging, a ‘small cloud’ approach can be incredibly rewarding. Those who ‘get it’, like FreshBooks or WaveAccounting, get millions of users within a span of few years. And those who don’t – well, that’s another story.

By Dmitry Valyanov

Dmitry Valyanov is CEO of Bitrix24 – world’s fastest growing social intranet and Productivity 2.0 platform created specifically for small businesses. Over 85,000 companies have signed up with Bitrix24 since its launch in 2012.

Follow Us!

CloudTweaks

Established in 2009, CloudTweaks.com is recognized as one of the leading authorities in cloud computing information. Most of the excellent CloudTweaks articles are provided by our own paid writers, with a small percentage provided by guest authors from around the globe, including CEOs, CIOs, Technology bloggers and Cloud enthusiasts. Our goal is to continue to build a growing community offering the best in-depth articles, interviews, event listings, whitepapers, infographics and much more...
Follow Us!

Sorry, comments are closed for this post.

Cloud Computing Offers Key Benefits For Small, Medium Businesses

Cloud Computing Offers Key Benefits For Small, Medium Businesses

A growing number of small and medium businesses in the United States rely on as a means of deploying mission-critical software products. Prior to the advent of cloud-based products — software solutions delivered over the Internet – companies were often forced to invest in servers and other products to run software and store data. The…

The Education Revolution: Cloud In The Classroom

The Education Revolution: Cloud In The Classroom

The Education Revolution: Cloud In The Classroom With the back-to-school season now upon us, parents, students and teachers everywhere are once again struggling with the perpetual challenge of making kids job-ready in a high-speed and fast-changing environment. There is little doubt in anyone’s mind that information technology plays a central role in all areas of life…

The Business Benefits of Cloud CRM

The Business Benefits of Cloud CRM

The Business Benefits of Cloud CRM From software deployment, to mobility, to wearable technology, cloud computing has transformed seemingly every aspect of modern business. Research indicates cloud applications and platforms will be at the forefront of IT spending by 2016, with half of all enterprises implementing cloud solutions by 2017. One of the quickest markets…

Cloud Infographic – The Future Of Big Data

Cloud Infographic – The Future Of Big Data

The Future Of Big Data Big Data is BIG business and will continue to be one of the more predominant areas of focus in the coming years from small startups to large scale corporations. We’ve already covered on CloudTweaks how Big Data can be utilized in a number of interesting ways from preventing world hunger to helping teams win…

5 Considerations You Need To Review Before Investing In Data Analytics

5 Considerations You Need To Review Before Investing In Data Analytics

Review Before Investing In Data Analytics Big data, when handled properly, can lead to big change. Companies in a wide variety of industries are partnering with data analytics companies to increase operational efficiency and make evidence-based business decisions. From Kraft Foods using business intelligence (BI) to cut customer satisfaction analysis time in half, to a…

CONNECT TO THE CLOUD

 

Cloud Logo Sponsors

hp Logo CityCloud-PoweredByOpenstack-Bluesquare_logo_100x100-01
cisco_logo_100x100 vmware citrix100


Contributor Spotlight

Established in 2009, CloudTweaks is recognized as one of the leading influencers in cloud computing, big data and internet of things (IoT) information. Our goal is to continue to build our growing information portal, by providing the best in-depth articles, interviews, event listings, whitepapers, infographics and much more.

Contact

CloudTweaks Media
Phone: 1 (212) 763-0021