What is Cloud Computing?
“The Cloud” is a new marketing term for “the internet.” Cloud computing refers to moving data storage and processing off your local computer to a third party and accessing it in real time; typically through a web browser. Some popular examples include: Flickr, Google Docs and Yahoo! email. More and more products and services typically reserved for large enterprises are being offered to small businesses via the cloud everyday.
For the small business owner these types of products and services create some distinct advantages.
Get The Gist
Easy
Cheap
Low Maintenance
Simple Licensing
Share and Collaborate
Protect Yourself
Third Parties Increase Value
1. Easy
Most services are super easy to set up and often require no configuration. Often times the only setup is registering on a website. Of course, most companies also offer configuration options for the more advanced users.
2. Cheap
A lot of pricing plans for cloud services start at free and move up either in tiers or based on usage. A lot of companies have also embraced the “freemium” model in which the core services are fully functional and free. Paid subscribers get access to additional features and support. Most vendors also bill monthly (with annual options) allowing the small business owner to spread out the cost of the paid services.
3. Low Maintenance
Most cloud services only require a web browser so there’s no additional software to install and maintain on your computer. One web browser with an internet connection and you’re ready to go. Some companies offer a hybrid system with both local software and a browser-based service. Evernote is a great example: They can be completely browser-based and offer software for most modern operating systems (Windows, Mac, iOS [iPhone], Android, Blackberry, etc). One of the many brilliant things about Evernote is the service keeps all the local devices in sync.
Companies such as Evernote that offer a local client will often alert you within the application when a new version is available. You no longer have to worry about manually checking to keep your software updated. Most companies don’t charge for the software or the upgrades because you’re paying for the service. When’s the last time Intuit gave away the most recent upgrade to Quickbooks?
4. Simple and Smart Licensing
Similar to the low maintenance, licensing is also typically easy. With the traditional software model you license a single computer. If you switch computers or want to work off another one for the day you have to move the license. This is often tricky at best if not near impossible. Any small business owner familiar with the paid Adobe products can testify.
With cloud services the license is based on the user. You can use any computer anytime to access the service and have the license follow.
5. Share and Collaborate with Employees and Customers
How many times have you emailed a spreadsheet to yourself so you can access it at home? Or how about emailing a spreadsheet to several employees for feedback and changes? And now your left with several incomplete versions of one spreadsheet which you must piece back together.
Cloud-based services, like Google Docs or Microsoft’s Office Live, eliminate that hassle. One version of the spreadsheet lives online so you can access it anywhere. Your employees can access it as well. Google Docs even allows multiple people to be editing the same spreadsheet at the same time. No more missed or overwritten changes.
6. Protect Yourself From Lost or Broken Computers
Spilled coffee on a laptop or a dropped laptop. These mishaps are inevitable. Don’t led a ruined laptop ruin your business. If your data lived online your company would be safe no matter what shape your computer was in.
Of course, don’t let the cloud lure you into a false sense of security. Cloud-based services are no substitute for a good disaster backup and recovery plan. But for most small business owners it’s a step in the right direction.
7. Third Party Services Increase Value
A lot of the cloud-based services are able to interoperate to some degree. This can be as simple as one username and password to log in to all services. Or something as complex as sharing data and documents across services. Google’s App Marketplace is a great example of third party companies offering products and services that tie in seamlessly to Google Enterprise. Create and share documents within your organization with Google Docs. But then utilize Box.net to share those same documents with clients so you can track when and how often they’re downloaded. New products and services are being offered everyday to support just about any aspect of your business.
Conclusion
For most small business owners one of my first recommendations is to move to the cloud. It provides a great infrastructure to get any small business owner a start.
All Things Dave 