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Get your head in the cloud 

Oct 05 2010

Cloud computing: Is it overhyped or a genuine innovation for SMEs? Cloud computing: Is it overhyped or a genuine innovation for SMEs?

Steve Garnett, chairman of salesforce.com for EMEA, dicusses how a small business can benefit from the adoption of cloud computing.
 
SMEs often see IT as an unwieldy resource that is both expensive and difficult to manage. Scarred by memories of implementations which failed to deliver return on investment, many remain unconvinced of its potential to improve workforce efficiency, enhance operational processes and drive innovative business strategies.

Yet a new approach to IT has emerged which is set to change all this. Cloud computing is based on the concept that IT should be delivered as a service over the Internet. Documents, emails, applications and other business data are accessed online or ‘in the cloud’, making them available from any PC, laptop or mobile device, and importantly, in real-time.
 
Unlike traditional IT systems, cloud applications require no more infrastructure than an internet connection and can even work wirelessly on mobile devices. This capability enables companies to reduce upfront capital expense and slash maintenance costs.
 
Equally, in contrast to traditional client-server approaches, cloud computing does not consume an SME’s internal resources. In-house IT teams can now focus on deploying more applications or delivering new projects that drive business benefits and innovation. Speed of implementation and seamless upgrades are other key benefits. Cloud-based applications can be operational in a few days and usage can scale up and down immediately.
 
Making the Most of Life in the Cloud
 
So the benefits of cloud computing for SMEs are clear. As they make their move to the cloud, however, SMEs should consider the following key tips.
 
1. Grow at Your Own Pace
 
Cloud computing offers scalable services that let users select their own level of engagement and upgrade easily at any future point. The best solutions offer users an entry-level service for a single licence and then allow them to expand from there.
 
2. Learn from the experience of others
 
Cloud computing services have a strong and loyal community following. While software has previously been developed in a silo, cloud services are often improved through continuous user feedback and real-time knowledge of what features are most useful and most widely deployed within organisations. Companies should find out if anyone else in their business community has implemented cloud computing and look to learn from their experiences and emulate their successes.
 
3. Leverage the subscription model
 
Cloud computing employs a subscription model. This allows users to have much greater control over their IT budgets. They can forget about buying servers and software. When applications run in the cloud, services are ‘rolled up’ into a predictable monthly subscription, so customers only pay for what they actually use. This makes it easier for businesses to work out exactly how much they have saved and to calculate their return on investment as well as have clear, predictable costs for business solutions.
 
4. Think Long Term
 
SMEs are currently investing too much in the upfront cost of IT infrastructure. They often incur huge costs managing IT, when they could be saving cash and investing it in other strategic assets that are core to their business. Cloud computing significantly reduces the need for costly infrastructure associated with traditional, on-premise software and the additional management overheads required. SMEs need technology that is scalable to their requirements – especially in these uncertain times. IT should be seen as a strategic partner to the business, which can deliver long-term efficiency and success, rather than a quick fix to satisfy short-term goals.
 
5. Put applications first
 
Organisations need to consider which cloud applications will deliver the best ROI. Cloud computing is as much about having the power and flexibility to meet particular needs as and when they arise as it is about ongoing business success and efficiency. So businesses need to think carefully about how the technology could help to meet their strategic objectives.
 
Foundation for Success
 

So, as this article has shown, there has never been a better time for SMEs across the UK to make the switch to cloud computing. The technology is low-cost; scalable, easy to implement and use. Such is its flexibility that it can be used at the heart of business strategy helping to drive cost efficiencies, operational effectiveness and ultimately competitive edge. For SMEs, life in the cloud is a compelling prospect.

 
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