Cloud computing for business – the economic case
Every business owner and journalist I know is talking about the advantages of cloud computing. But what is it, what does it really mean for business and what are the monetary and tangible upsides?
Cloud means Internet. The computing is done 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 usually staffed by people who are adept in managing technology. This type of “cloud” software is commonly known as “on demand” or Software as a Service (SaaS).
Some well known examples of popular 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 around $99 per user/month.
There are three key benefits for every business here:
Time, cost savings and reliability
Businesses do not need a permanent systems expert to help them identify, commission and support the hardware and software infrastructure thus pushing down operating costs and time to get operational. The task of vigilantly backing up data is removed as this is often an inherent feature of the “cloud” software. Cloud software “operators” often have stand by systems that can be brought to bear in seconds should a major failure occur.
Easier selection and wider choice
Using a web browser, businesses now have 24/7 access to hundreds of software packages they can in most cases immediately evaluate and swiftly decide if the software suits their needs at zero expense. This makes it straightforward for innovators in large corporations to get around the normal information technology buying processes and easily evaluate and justify their business proposal.
Superior user experience
The cloud provides instant feedback to system developers and has fuelled amazing progress in user interface design resulting in more intuitive systems thus reducing learning times and improving user satisfaction. This of course means quicker adoption and higher productivity.
0 comments Saturday 27 Jun 2009 | admin | General

















































