Every business executive and technology editor I know is talking about the benefits of cloud computing. But what is it, what is the impact on business and what are the financial and tangible upsides?
Cloud means Internet. The computing happens on the Internet – instead of the software you use being installed 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 sometimes called “on demand” or Software as a Service (SaaS).
Some well known examples of well established Software as a Service are:
Web based CRM Software (Customer Relationship Management) – Salesforce.com pricing approximately $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 significant benefits for every business here:
Time, cost savings and reliability
Businesses no longer require a permanent systems expert to help them choose, commission and look after the hardware and software platform thus lowering operating expenses and time to deploy. The burden of regularly backing up information is taken away as this is almost always an inherent function of the “cloud” software. Cloud software “operators” normally have stand by systems that can be brought to bear in minutes should a serious failure occur.
Easier selection and wider choice
Through the ubiquitous web browser, businesses now have 24/7 access to a big selection of business software they can in most cases immediately test and quickly assess if the software suits their needs at minimal expense. This makes it effective for people in large businesses to by pass the usual information technology procurement processes and easily evaluate and justify their business proposal.
Superior user experience
The net provides rapid feedback to application developers and has led to substantial progress in user interface design resulting in easier to use software thus decreasing learning times and improving user satisfaction. This of course means quicker adoption and higher productivity.