Every business executive and newspaper editor I know is talking about the benefits of cloud computing. But what is it, what does it really mean for business and what are the economic and physical upsides?
Cloud means Internet. The computing is done on the Internet – instead of the software you use executing on your computer, it’s hosted on the Internet on a server installed in a data centre commonly staffed by people who are skilled 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 around $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 a number of substantial benefits for every business here:
Time, cost savings and reliability
Businesses do not require a resident IT expert to help them procure, implement and support the hardware and software infrastructure thus lowering operating costs and time to deploy. The effort of constantly backing up data is removed as this is normally an inherent feature of the “cloud” software. Cloud software “operators” almost always have redundant systems that can be turned on in seconds should a serious problem occur.
Easier selection and more choice
Through the ubiquitous web browser, businesses now have immediate access to a massive choice of applications they can in most cases immediately test and effectively assess if the software fits their needs at minimal expense. This makes it very easy for people in large corporations to get around the normal information technology buying processes and easily assess and justify their business proposal.
Superior user experience
The web provides instant feedback to software vendors and has driven significant progress in user interface design resulting in more intuitive software in turn lowering learning times and increasing user satisfaction. This of course means faster adoption and better productivity.
Tags: Cloud Computing