Gadget Blog

Every business leader and technology editor 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 obvious benefits?

Cloud means Internet. The computing takes place on the Internet – in place of the software you use running on your computer, it’s hosted on the Internet on a server located in a data centre usually staffed by people who are proficient in managing technology. This type of “cloud” software is sometimes called “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 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 a number of major benefits for every business here:

Time, cost savings and reliability

Businesses do not need a permanent systems professional to help them choose, commission and manage the technology infrastructure thus reducing operating costs and time to implement. The burden of continuosly backing up data is taken away as this is normally an inherent function of the “cloud” software. Cloud software “operators” often have stand by systems that can be brought to bear in instantly should a disruptive failure occur.

Easier selection and wider choice

With just a web browser, businesses now have immediate access to a huge range of software packages they can in the majority of cases immediately test and effectively assess if the software meets their needs at minimal expense. This makes it very easy for managers in large corporations to get around the normal information technology purchasing processes and easily assess and justify their business case.

Superior user experience

The internet provides rapid feedback to application vendors and has fuelled substantial progress in user interface design resulting in easier to use systems thus improving learning times and increasing user satisfaction. This of course means faster adoption and better productivity.