“The cloud” has become the new, hot buzzword in business. It is being heard with increased frequency as the cloud itself grows in size, scope and usefulness. Small business owners don’t want to be left behind as they hear stories daily about how their larger competitors are moving “to the cloud.” But what does moving to the cloud mean? More importantly, is cloud computing only for the big guys or can small businesses realise benefits, too?
Cloud computing is essentially an overall term that covers various areas of technology services. Each of these service areas has its own way of saving money for businesses of all sizes, especially smaller companies.
Applications at the Desktop Level
Software as a service, or SaaS, is a simple, effective method small business owners can use the power of cloud computing to lower IT spending. In this scenario, the small business owner engages a cloud software provider for access to applications that would normally be installed on company desktops, like CRM or email. Employees access these applications through a web browser instead of through installed desktop software. Rather than pay the high cost associated with software licensing fees and the cost of servers, small businesses pay for a subscription on per-user or per-use basis. Small companies may not make use of applications constantly like their larger competitors do, so paying only for what you need makes sense and can save a lot of money.
Infrastructure-Level Hosted Services
Desktop application subscriptions are one way to save with cloud computing. Another way small businesses can utilise the cloud to keep IT budgets down is through the use of hosted infrastructure services. Consider backup solutions as an example. In order to back up a company’s vital data on site, a small business needs backup software, a server on which to run it, a tape-based storage device, regular tape purchases and an offsite storage method for housing tapes securely.
Consider online backup as an alternative. A hosting provider will give a small business the backup software access via a browser and then nightly online backups are carried over broadband to the provider’s storage location. All these hardware, software and tape fees are eliminated in this scenario, replaced by a monthly subscription. Online backup is just one example out of many where cloud-based solutions can save infrastructure costs for small businesses.
Server Replacement
Another infrastructure cost is the high price of servers. Growing businesses need servers for all manner of functions, including databases, file storage, email and more. Cloud providers offer hosted server options so small business owners can rent offsite physical and virtual servers at a fraction of the cost of owned hardware. Even greater cost savings are realised in this case through decreased maintenance and staffing costs as well as the reduction or even elimination of the server room.
Website Hosting
Web hosting is among the oldest uses of the cloud computing model. Very few large companies host their corporate web sites on their own hardware anymore. Smaller businesses need to follow suit. Cloud web host companies can offer dedicated physical servers or virtual web servers for company sites. Cloud hosting offers higher security, better support and a many other services that can save a small business time, funds and bandwidth.
The Private Cloud
One concept many small businesses don’t consider is the private cloud. Not all clouds are hosted by a separate company and purchased as a service. Any company that uses a virtualization solution like VMware is doing their own private cloud computing. Smaller companies simply must consider hardware virtualization. By using virtualization to build their own clouds, companies can slash their IT budgets by having one server do the work of many. Along with SaaS, server replacement, infrastructure support, online backups and web hosting, the private clouds is another way a small business can leverage the concept of the cloud to stay competitive in a fast-paced technology-driven mark
