Cloud computing for business - the economic case
All of the technology and business people I regularly talk to keep telling me cloud computing. But what is it, what does it really mean for business and what are the financial and tangible benefits?
Cloud means Internet. The computing occurs on the Internet – in place of the software you use executing on your computer, it’s hosted on the Internet on a server installed in a data centre usually staffed by people who are experts in managing technology. This type of “cloud” software is commonly known as “on demand” or Software as a Service (SaaS).
Some shining 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 three key benefits for every business here:
Time, cost savings and reliability
Businesses don’t need a dedicated information technology expert to help them select, implement and look after the systems platform thus decreasing operating costs and time to get operational. The effort of continuosly backing up data is taken away as this is almost always an inherent function of the “cloud” software. Cloud software “operators” almost always have redundant systems that can be deployed in seconds should a major failure occur.
Easier selection and wider choice
Through the ubiquitous web browser, businesses now have 24/7 access to a massive choice of software packages they can in the majority of cases immediately test and quickly assess if the software fits their needs at minimal expense. This makes it effective for employees in large enterprises to circumvent the usual information technology procurement processes and easily test and justify their business proposal.
Superior user experience
The net provides immediate feedback to system architects and has driven substantial progress in user interface design resulting in easier to use systems thus lowering learning times and improving user satisfaction. This of course means quicker adoption and higher productivity.
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