All of the technology and business contacts I regularly talk to keep talking about cloud computing. But what is it, what is the impact on business and what are the economic and physical upsides?
Cloud means Internet. The computing takes place on the Internet – in place of the software you use being installed on your desktop pc, it’s hosted on the Internet on a server located in a data centre usually staffed by people who are experts in managing technology. This type of “cloud” software is sometimes called “on demand” or Software as a Service (SaaS).
Some typical examples of well established 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 approximately $99 per user/month.
There are a number of key benefits for every business here:
Time, cost savings and reliability
Businesses no longer need a permanent systems professional to help them select, install and look after the systems infrastructure thus decreasing operating expenses and time to implement. The effort of vigilantly backing up data is taken away as this is usually an inherent function of the “cloud” software. Cloud software “operators” usually have redundant systems that can be deployed in minutes should a serious failure occur.
Easier selection and wider choice
Using a web browser, businesses now have immediate access to a big selection of business software they can in most cases immediately try and effectively determine if the software fulfils their needs at minimal expense. This makes it simple for employees in large businesses to get around the restrictive information technology procurement processes and easily test and prove their business case.
Better user experience
The net provides instant feedback to system developers and has driven substantial progress in user interface design resulting in easier to use software thus decreasing learning times and improving user satisfaction. This of course means faster adoption and better productivity.
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