Cloud computing - the business case
All of the technology and business people I regularly talk to keep mentioning cloud computing. But what is it, what does it really mean for business and what are the monetary and physical upsides?
Cloud means Internet. The computing is done on the Internet – in place of the software you use executing on your computer, it’s hosted on the Internet on a server located in a data centre commonly staffed by people who are adept in managing technology. This type of “cloud” software is often referred to as “on demand” or Software as a Service (SaaS).
Some best of breed 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 around $99 per user/month.
There are a number of key benefits for every business here:
Time, cost savings and reliability
Businesses no longer require a permanent IT expert to help them choose, install and look after the systems infrastructure thus lowering operating expenses and time to implement. The burden of constantly backing up data is eradicated as this is usually an inherent function of the “cloud” software. Cloud software “operators” usually have stand by systems that can be deployed in seconds should a serious problem occur.
Easier selection and more choice
Through the ubiquitous web browser, businesses now have immediate access to a big selection of software packages they can in most cases immediately test and swiftly assess if the software meets their needs at no cost. This makes it effective for innovators in large enterprises to by pass the standard information technology buying processes and easily test and prove their business proposal.
Superior user experience
The internet provides immediate feedback to application architects and has led to significant progress in user interface design resulting in easier to use systems in turn lowering learning times and increasing user satisfaction. This of course means faster adoption and higher productivity.
Tags: Cloud Computing