All of the technology and business people I regularly talk to keep bringing up cloud computing. But what is it, what does it really mean for business and what are the monetary and tangible upsides?
Cloud means Internet. The computing occurs on the Internet – instead of the software you use being installed on your computer, it’s hosted on the Internet on a server installed in a data centre commonly staffed by people who are experts in managing technology. This type of “cloud” software is often referred to as “on demand” or Software as a Service (SaaS).
Some typical 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 about $99 per user/month.
There are 3 significant benefits for every business here:
Time, cost savings and reliability
Businesses no longer need a permanent systems professional to help them procure, bed in and look after the systems infrastructure thus reducing operating costs and time to get operational. The task of constantly backing up data is removed as this is normally an inherent feature of the “cloud” software. Cloud software “operators” often have redundant systems that can be turned on in minutes should a disruptive problem occur.
Easier selection and wider choice
Using a web browser, businesses now have instant access to hundreds of business software they can in the majority of cases immediately appraise and effectively assess if the software suits their needs at minimal expense. This makes it effective for managers in large enterprises to get around the usual information technology buying processes and easily evaluate and justify their business proposal.
Better user experience
The web provides rapid feedback to system architects and has fuelled amazing progress in user interface design resulting in easier to use systems thus improving learning times and increasing user satisfaction. This of course means quicker adoption and better productivity.
