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 economic and tangible upsides?
Cloud means Internet. The computing happens on the Internet – in place of the software you use running on your computer, it’s hosted on the Internet on a server installed in a data centre usually staffed by people who are skilled in managing technology. This type of “cloud” software is often referred to as “on demand” or Software as a Service (SaaS).
Some typical examples of popular 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 around $99 per user/month.
There are a number of substantial benefits for every business here:
Time, cost savings and reliability
Businesses no longer need a permanent systems professional to help them choose, install and look after the systems infrastructure thus reducing operating expenses and time to get operational. The task of regularly backing up information is taken away as this is usually an inherent feature of the “cloud” software. Cloud software “operators” often have redundant systems that can be switched on in minutes should a major error occur.
Easier selection and wider choice
Using a web browser, businesses now have immediate access to hundreds of software packages they can in most cases immediately appraise and effectively assess if the software fits their needs at minimal cost. This makes it effective for innovators in large concerns to circumvent the usual information technology buying processes and easily assess and justify their business proposal.
Superior user experience
The web provides rapid feedback to software designers and has driven significant progress in user interface design resulting in easier to use systems in turn reducing learning times and improving user satisfaction. This of course means quicker adoption and better productivity.
Thu, Jul 2, 2009
Marketing