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.

Join Our Newsletter

Receive updates each week on news, tips, events, comics and much more...

Can I Contribute To CloudTweaks?

Yes, much of our focus in 2015 will be on working with other influencers in a collaborative manner. If you're a technology influencer looking to collaborate long term with CloudTweaks – a globally recognized leader in cloud computing information – drop us an email with “tech influencer” in the subject line.

Please review the guidelines before applying.

Contributors

Cloud Infographic – Wearable Tech And Preventative Healthcare

Cloud Infographic – Wearable Tech And Preventative Healthcare

Wearable Tech And Preventative Healthcare There are so many exciting new opportunities available to utilize wearable technology in the future.  Areas such as nanotechnology disease monitoring, crowdfunding to wearable accessories are some excellent examples of the potential. Estimates vary, but appear to suggest that the market will produce between $14-50 Billion over the next few years. Included below

Ten Tips For Successful Business Intelligence Implementation

Ten Tips For Successful Business Intelligence Implementation

Ten Tips for Successful Business Intelligence Implementation The cost of Business Intelligence (BI) software goes far beyond the purchase price. Time spent researching, implementing, and maintaining your BI investment can snowball quickly and mistakes are often expensive. Your time is valuable – save it by learning from other businesses’ experiences. We’ve compiled the top ten

Knots And Cloud Service Providers

Knots And Cloud Service Providers

How Do These Two Compare? In Boy Scouts, I learned how to tie knots. The quickest knot you can tie is the slipknot. It’s very effective for connecting one thing to another via the rope you have. It was used in setting up tents, mooring boats to docks temporarily and lifting your food up into

Aggregated News

Popular News Sources

Storage Considerations for SharePoint Backups

Storage Considerations for SharePoint Backups

Storage Considerations for SharePoint Backups Wednesday, October 29, 2014 @ 9:00 am/12:00pm ET. Backup and Restore of a SharePoint environment can be a complex endeavor as the product consists of multiple components running at various tiers, each with their own backup and restore requirements. In addition, SharePoint documents are stored as Binary Large Objects (BLOBs) in

OpenDNS Deployment Leads to Twenty-Fold Decrease in Malware Infections at Hamamatsu

OpenDNS Deployment Leads to Twenty-Fold Decrease in Malware Infections at Hamamatsu

Decreases in Malware Infections at Hamamatsu OpenDNS, a leading provider of cloud-delivered security, today announced that it has enabled Hamamatsu, a Japanese manufacturer of optical sensor technologies, to virtually eliminate malware infections across its U.S. Read the source article at Finance News About Latest Posts Follow Us!CloudTweaksEstablished in 2009, CloudTweaks.com is recognized as one of the

IBM and Microsoft – What Are They Doing With The Hybrid Cloud?

IBM and Microsoft – What Are They Doing With The Hybrid Cloud?

What Are They Doing With The Hybrid Cloud? “Microsoft is committed to helping enterprise customers realize the tremendous benefits of cloud computing across their own systems, partner clouds and Microsoft Azure,” said Scott Guthrie, executive vice president,Cloud and Enterprise, Microsoft. “With this … Read the source article at CNNMoney About Latest Posts Follow Us!CloudTweaksEstablished in 2009, CloudTweaks.com is recognized