Accessing software and data in the cloud is steadily gaining acceptance as a low-maintenance alternative to on-premise hosting. For small and midsize businesses, cloud computing offers significant advantages that can enable you to cost-effectively compete with large competitors. There are, however, vast differences in the way providers deliver their services so it’s important to understand the potential benefits and how to select the right provider.
Demystifying the cloud
There are several varieties but the underlying premise of cloud computing is that tools and information are accessed via the Internet. So instead of installing software on each computer, users log-in to a Web-based service to access programs and data. The tools, which are often called OnDemand or software as a service (SaaS), are hosted for you.
If you have a Hotmail, Yahoo! or Gmail account, you've already experienced cloud computing. Salesforce.com, a popular CRM system, is a good example of a business application where you purchase a per-user license for the software and access it through the Internet.
Opportunities for small and midsize businesses
The cloud opens new doors for small and midsize business owners because they can now use the same software as large-scale competitors without a hefty upfront investment. For example, enterprise resource planning (ERP) applications are used by most big businesses to manage their entire business through a single program. Now any size company can quickly get set up with an ERP system without upgrading its IT infrastructure. The only requirement is a computer that can run the interface software, which can be as simple as a Web browser. Need more reasons to consider the cloud?
- Fast deployment and low maintenance
- Minimal implementation time
- Upgrades are automatic and hassle free
- Easy to add more features as your business evolves
- Predictable operational costs
- Per-user fees cover software, upgrades, and support
- Contract terms can extend over several years
- Store and access data from multiple locations and remotely
- Everyone with an Internet connection can access the same data
- Secure storage
- Data is routinely backed up and protected in secure data centers
Is it right for you?
Cloud-based software solutions vary widely between providers. Like any business decision, it’s important to carefully assess how an offering measures up against your needs.
1. How often is the software upgraded?
Subscribers typically have little control over upgrades so it’s important to review the provider’s track record.
2. Is there a minimum service level agreement for uptime?
Access to your software and data can be interrupted during site maintenance or an outage so be sure to fully understand how your business might be affected.
3. Can the software be tailored to your current and future needs?
Customizations are often very limited so either ensure that the software is configurable to your specific business requirements or consider on-premise hosting.
4. What backup and security measures are in place?
Cloud service providers typically have state-of-the-art data centres with security practices that exceed most small and midsize businesses but be sure to request documented procedures that detail how your data is safeguarded against online and physical threats.
5. Is the cloud service provider stable and trustworthy?
Select a reputable company with documented practices, product roadmaps, and financials.
Take away – it’s worth a look!
Software solutions that previously required sophisticated IT infrastructures and long implementation cycles are now available in an easy-to-deploy, low-maintenance cloud environment. It’s important though to carefully examine costs over three to five years to determine if, in the long run, a cloud solution is more cost effective than an on-premise one. For an unbiased recommendation, based on your business needs, talk to an IT consultant that offers both deployment options.
Useful links related to this article
> Whitepaper: The Pros and Cons of SaaS ERP
> Information sheet: All the Benefits of SAP® Business One Available via the Cloud
> Ask an expert: Email your cloud computing question to Zantek
| Next month's article |
| Learn the mistakes that growing businesses make - and how to avoid them! |
| Article coming March 30 - enter your email address in the Stay Informed box on the right to automatically receive it or follow us on LinkedIn. |