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How critical is Cloud Computing for Startups & SMEs ?

Is this just a buzz or will it help save costs and bring more rewards...Do share your thoughts

Clarification added 4 months ago:

You may share examples too.

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Ravi Kikan

Startup Specialist Group
http://linkd.in/w4uQ1G

posted 4 months ago in Small Business | Closed

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Ramesh K.

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It all depends on what is your requirement.

If you have 4-5 sales and marketing guys, you do not buy some sales automation software. You can sign up with a CRM on cloud like Impel ( http://www.impelcrm.in/)

If you need to deliver a solution to your clients, you have two approaches.
1. Build everything on cloud platform, so that it becomes cheaper and easier to your clients. But, it is very critical to keep the customization to the minimum for any new client.
2. If you deliver different solutions to different clients and you customize the solutions, you can still go for hosting on cloud.

If your volume is high and paying more for the cloud, you may compare with a dedicated server which may cost $ 3000 per year !

Ramesh
humansearchengine.in

posted 4 months ago

Kenneth L.

Retired Aerospace Contracts Manager, MicroMentor Volunteer and Founder "Smalltofeds"

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It is the wave of the future.

All the fascination about terminal hardware applications will be over in the near future. The "Cloud" and SAS will rock the hardware and software world and make access to technology easier for vast populations. Devices to do so will cost pennies on the current dollar or the will be free.

Like the PC makers, the sun is already setting on cell phone devices, associated applications, OTS packaged software and related products. Even though these products are enjoying current popularity They are expensive and will be rapidly overtaken by tight economics and services competition.

Smart,strategic planners are pointing to the future and it is not a hardware and licensed software market - it is service oriented with low cost access and rates. Volume, free products, advertising and shareware will drive it all.

Possible exceptions for a bit longer period of time are the high-end hardware and software technologies in government contracting, which for security reasons must be cloistered, protected and safeguarded. Your friendly government agency will be the last to boot its PC out the window.

posted 4 months ago

Stein Ove S.

Managing Director at SuperOffice Software Ltd

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Hi Ravi,
Cloud is just convenience - nothing to install and no up front investment. You will still want to chose a Cloud CRM which is usable and expandable. Just like SuperOffice CRM Online!
Talk to Steve if you want more insight.

Best regards,
Stein

Links:

Stein Ove S. also suggests this expert on this topic:

posted 4 months ago

Robert N.

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How critical cloud computing is to *any* business - startups or otherwise - depends entirely on the business itself - on its needs and goals and on its policies and strategies. It is far from certain that all businesses need cloud services.

"Cloud" technologies are much misunderstood, much misrepresented and poorly understood even amongst those who work in IT: amongst the issues which are now poorly presented are

a] there's no such thing as "the cloud" - there are many many different cloud-like deployments of systems and services; each offering different levels and types of service. Some are entirely private, some are entirely public; and others are a mix of the two. Some clouds are entirely on-premises; some clouds are remote, and some may be a mix of the two. There is no "one-size fits all" cloud deployment. There is no cloud. There are merely collections of distributed services which are *described* as being a cloud - or as something or other as a service.

b] moving to a cloud deployment is not significantly different to deploying any other fail-safe high-resilience deployment of technology. The difference is that one has moved the complexity further away - outside one's direct control, and increased the fragility and the number of dependencies unless suitable risk and impact analysis has been done prior to the design/deployment phase - and done to appropriate standards of due diligence.

c] the reduction of costs is largely an illusion; we ourselves may see reduced capex/opex costs, but meanwhile the energy costs and Carbon footprints of the global data warehousing and cloud industry and all of its NOCs have spiralled exponentially so that they now significantly exceed those of all the worlds air traffic and are well on track to exceed those of air and road transport combined by circa 2020. Cloud doesn't reduce those wider social and environmental "costs" it merely moves them elsewhere - out of our sight - leaving "us" with the illusion that we have reduced our capex/opex.

d] moving to a cloud deployment is all very well but it increases a critical risk which has been with us since the dawn of the internet; the wire limit - how much data one can move between locations in a given time period. We are now creating [and using] data at a rate that vastly exceeds our capacity to move it.
We are also creating a gigantic single point of failure for all businesses which make themselves entirely dependent on the cloud; if all their comms fail so does the business. If their data movement time exceeds their risk recovery window then the business fails.

**************

Cloud technology can be very useful; but only when all parties involved truly understand its risks and its rewards. Startups need to make informed choices when determining how critical a cloud deployment may [or may not] be for them. Appearances are often deceiving.

posted 4 months ago

Dermot D.

Founder and CTO at iSpaces

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All computing will move to the cloud in the next few years, so, get with the cloud or get left behind, simple as that.

Links:

posted 4 months ago

Jitender S.

Founder, CEO CipherGraph Networks

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The most important reasons to do anything is improvement in productivity and reduction in costs. For SMEs and startups, the most important thing is to make sure they remain flexible, cloud (specially PaaS vendors) allow just that (in the least).

It is well known that cloud computing can reduce costs, not just in money but effort investment as well. Reducing the time you spend in managing your resources is an automatic productivity gain. Not needing to host your own data-center can be a significant saving (at least in the short term).

While running something in the cloud does not automatically make it cheaper, it certainly reduces the cost of entry and experimentation. Cloud simply gives you an easy low-investment way to manage your computing resources (of any kind).

Cloud computing however is not a panacea, there are pitfalls to it. Sometimes what you are really looking for is in-home virtualization.

While it may seem like its just about taking your applications and porting them to the cloud, there is more to it. The parameters for many critical things like security, scalability and performance are different in the cloud. So do not treat is like a buzz word (like Ajax used to be), it is a fresh paradigm and needs careful evaluation.

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posted 4 months ago

Krishnakishore B.

Proud Owner of 2 multi-tenant SaaS enterprise solutions!

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An analogy before I answer your question:
A startup could run their operations from
1) a modern-day coffee shop (nearly free)
2) a business center (Short duration rental)
3) lease office in a multi-tenant facility with neighbors having similar operations (longer duration commitment)
4) build their own facility and hire experts for non-core areas like security, power supply, cafetaria, medical facility, gym...

What would a startup choose? :)

I agree with most people who replied - depends on the business goal / strategy. But, for most who want to start small, have room for growth and avoid overheads, cloud is a definite PLUS - just choose a trusted partner.

Let me explain with SaaS.
Others mentioned CRM - so, let me take an example of a learning management system.
A small low-cost airline carrier may want his 15-20 member flying crew to undergo mandatory training each year and maintain their compliance records. They may prefer elearning as a channel.
A large insurance company wants to ensure that all their field staff (could be thousands of them) to catch up with latest product information on a periodic basis - they may prefer a combination of webinars and elearning.
And the lerning scenaio at a fast-growing IT/ITES company isnt too different. They’d want classroom training, elearning, virtual classrooms, assessments,…

For some functional areas - be it a learning management system, an accounting system or a CRM, irrespective of the size of the company, the functional requirements remain more or less the same.

If the startup could get the same rich functionality as his bigger cousins, at a low price, and pay for use... isn’t that beneficial to a startup? Definitely helps manage their funds better

All along, it was a case of Build vs. Buy.
Today, the options are Build vs. Buy vs. Rent!

While your needs are similar to your neighbours, RENT is a great option!

Rent in a multi-tenant facility - be it office space, Infrastructure (IaaS), or ready-to-use applications (SaaS). Reap the benefits of shared costs, extra security at a lesser price, zero-to-minimal overheads, ability to grow / shrink, and, of course, no Capex,....

Cloud - and especially PUBLIC CLOUD is about renting what you need! Startups should definitely go for Public Cloud.

BUT, go with a reputed, trusted and reliable provider. Building and running a multi-tenant building, a data center or an application - that is always ON, secure,... - is not for amateurs and enthusiasts!

If only we could do something to reduce the FUD around cloud.....

P.S.: We built 2 multi-tenant SaaS applications (Learning management and Trade Promotion Management) on Microsoft Azure platform.

P.P.S.: Even large enterprises in India have started using cloud to understand how much it would benefit them. Cannot name them in a public forum though! :)

posted 4 months ago

Frederic D.

Web entrepreneur

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Cloud computing for startups and SMEs is becoming more and more critical because:

- Cloud computing enables instant deployment of IT solutions. Register click and go!
- Cloud computing means OPEX and not CAPEX. Furthermore, OPEX is manageable on a "pay as you use" basis which enables very tight budget management - so critical when you start a new business!
- Cloud computing, because it is ready to use, will enable entrepreneurs to concentrate on other tasks that are important for their business growth, rather than investing precious time in setting up IT and Software architecture for their back-office operations for example.
- Cloud computing is highly scalable and will follow and support your business growth.
- Most cloud computing solutions have 99,9% availability SLA's enabling you from day one to work around the clock and in different geographical timezones which is really useful if you travel or if you have offshore staff (and if, as a typical entrepreneur, you work overnight!). This 99,9% availability means also that you don't have to manage operational risks around your IT infrastructure.

I could keep building this list forever... In my view, cloud computing is not an option. It should be a rational entrepreneurial decision. If I was a VC I would select my new businesses based on the cloud computing ratio indicated by the entrepreneur in his business plan!

HOWEVER, I fully agree with Tony Lockwood:

"However, it is critical that business leaders review their actual requirements and choose a solution that is relevant. It is all too easy to get caught up with functions/ capabilities etc that are just irrelevant to most SMEs. "

Selecting your cloud computing solution should go through the same process as if you were buying an in-house IT solution.

Links:

posted 4 months ago

Never has it been easier for start-ups and sme's to quickly gain access to enterprise grade, mission critical applications than now.

SaaS has given us price points that simply cannot be beaten by equivalent on- premise solutions.

Whether your looking for CRM, ERP, eCommerce, email and docs there are a plethora of vendors willing to help you move and stay in the cloud.

No more will you need a small server farm sitting in your office to manage your business. Start-ups and SME's today are virtually "born" into cloud technologies. It makes little sence at all to invest in depreciating assets like hardware and software when you simply can access all you need via the web.

If your looking to develop custom apps in the cloud then we manage a VMware cloud foundry service specifically aimed at incubating start-ups the platform as a service (PaaS) gives you all the tools and open stack platforms you need to develop, test and then move into production environments.

The cloud is truly a transformational and disruptive force that is shaking the IT industry to the core, this can only have commercial and competitive advantages to any start-up and SME.

The cloud can be likened to a second industrial revolution - adopt or die and start-ups and SME's are poised to be the faster adopters of cloud technologies.

Links:

posted 3 months ago

Ian M.

Co-Founder Salem Consulting - International SharePoint Strategy Co & inventor of The Salem Process suite for SharePoint

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In defining cloud we would typically state for any SME that it imeans technology services that are not 'on premise' and therefore cloud encompasses a wide range of cruicual off-premise services. For example, the criticality of an SME brand web presence through an intermet site from a cloud based hosted website provider is already an absolute given (on premise web server anyone?), as would be any cloud services offered and hosted via social network services for brand promotion (Linkedin).

Secondly are critical cloud based services that allow a business to operate daily and professionally and share business information and collaborate through a virtual office (SMEs frequently dont often have office space in the early days) either internally or with b2bs and clients. We have run our international company using Microsoft Office 365 since day one which means we have critical professional cloud services such as Exchange 2010 with archiving, SharePoint 2010 with fully secure collaboration and extranets for partners, Lync 2012 for unified communications with our clients and partners and even Office Professional 2010. An SME could not initially afford these services if on-premise.

From a business perspective once should consider the immediate benefits of cloud services for startups and SMEs. For example, a random visit by HMRC for a records check can be fully satisfied by financial records stored in the cloud, rather than expensive on-premise P&L finance packages.Cloud offers instant business continuity (BC) for a wide range of scenarios, something that even large corporations haven't mastered. Cloud services removes the cost of maintenance, upgrades and on-premise equipment. It affords mobility as companies progress and change location. It affords an SME an easy international presence, particulalry through services such as Office 365 SharePoint-driven extranet services.

Cloud affords for planned growth and scalability at an affordable price. A small company is not going to host a SAN in the CEO's living room, or build an IT support team in the early years. More than anything, cloud services offer business stability, consistency of service, industry level security, team mobility and accessibility, upgradability and comparable industry services to much larger competitors at a minimum cost. That makes an SME competitive with low overheads which is essential in the early days.

Cloud also removes the reliance on rogue IT support from friends, do-gooders and anyone willing to 'help' and moves the SME directly into world class support services.

Although the question is based around SMEs and startups, in practice any company large or small benefits from cloud based services and in many respects many companies and noew company owners have already been using cloud based services for over a decade (e.g hotmail). If a startup can build a practice without worry regarding professional industry strength IT which is available to them from day one, then they can focus on building their business and brand. In our opinion it is cloud services that will, in part, allow the global economy to rebuild itself from the entrepreneurism of the new generation of startups who will be the recruiters and income generators of the future. No longer is professional IT services the domain only of the monolithic, well established corporations.

posted 3 months ago

Kay (.

Marketing and Public Relations Consultant and Contractor

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Cloud computing offers new and rapidly organizations the ability to leverage the best of technology in a more consumable manner. Cloud solutions usually offer affordable month-to-month contracts, both the technology and the specialized staff to support the solution on your behalf, and most importantly you don't need to 'recreate the wheel' by hiring staff, customizing software and buying infrastructure.

Leading cloud solutions like Salesforce.com, NetSuite and SPS Commerce allow companies to remain focused on their business objectives and not become involved in the nuances of running their systems. Most SMEs are understaffed and need to outsource what they can. I'd suggest reading some of their case studies and whitepapers to see some real life examples of ROI for SMEs.

Hope this was helpful.

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posted 3 months ago

Blaze A.

Marketing and Business Development executive at India's leading data storage and Cloud Backup expert Ace Data Devices

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Good day Ravi!

Cloud computing is definitively the "ambrosia" for Small and medium sized enterprises. Through the Cloud,they can afford leveraging the best CRM solutions for example that are being used by the mega players in their industry, without having to make significant investment in servers, network and other infrastructure. The best of all is Pay as you Grow model of payment, which allows them to delegate budget funds for this purpose in accordance to their current growth.

On the other hand, large enterprises have already invested heavily in creating their own Data centers for data storage and application hosting and they will intend to achieve their ROI before approaching the Cloud, even if their present infrastructure is rigid, old and problematic.

Have a great day and keep asking

posted 3 months ago

Guillaume B.

Information Technology Consultant, ExoSource

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Cloud Software/Services (aka every internet application since the last 10 years) is useful, of course, but you don't have to call it Cloud. You can still call is SaaS or Web Applications. "They" rebranded it but you don't have to.

Cloud Computing is the concept of running a server or desktop "as a service" AND "in the Cloud". If you're an internet startup, it means you can rent just the amount of servers you need for development without any large capital expenditures. It's a great way to get lots of value for little money.

For a non-technical startup or small business, it can be used as a way to avoid investing in an on-premises server or even business workstations. This model (called VDI: Virtual Desktop Infrastructure) has been there for a long time but is getting a second life through the magic of the Cloud™

posted 3 months ago

joy B.

worker at C & C Technologies

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Since startups and SMEs do not have large chunks of data, they face lesser threat for data security and lower risk for any data loss. Their backups and data storage may not require data transfer and distribution over multi servers. In fact, their data backup, storage and recovery may be much better facilitated by the cloud vendors as the infrastructure maintained by the cloud vendors may be much better in terms of efficiency than what the startups or the SMEs would go for because of high costs of owning IT infrastructure. In short, cloud storage could reduce the downside risk at lower costs.

Links:

posted 3 months ago

Tarun K.

Right time...right place

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Cloud is not a luxury now .It has become the necessity in the online space. If we related it to the ecosystem of Enterprise solutions, cloud is shaping up as a whole new industry. It helps organizations focusing on core competencies and outsources somewhat redundant components as SAAS.I believe SOA platforms allow you to help build your Strategies and reduce overall cost if done based on need. But the conspicuous fact that the technology adoption rate might differ in each geography and businesses will take time for doing need assessment for cloud, the faster and need based implementation becomes a huge challenge. The challenge here is to align your industry growth with the rate of adoption of cloud. The problem rises especially in case of developing and rising economies like India where though the potential is too high but adoption of advanced technologies is a bit slow e.g. 3G broadband. Another challenge lies in identifying the utility of cloud and not upgrading on cloud just to receive industry plaudits or pretend to gain competitive advantage. Airtel in India has upgraded over cloud but still it’s trying to find out ways as to how to go ahead with it. Again this problem is before industries in developing countries or Multi National Companies having operations in developing countries.

posted 3 months ago

Jonathan V.

Tax Saving Specialist at Jonathan Vowles Chartered Accountants

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Hi Ravi
There are loads of other good answers with good points and I hope you get something from my answer. I guess the first point is what sort of startup are you talking about?
If it is a kitchen sink startup with no funds then probably a really useful way to get access to expensive software and facilities without having to pay for them..in some cases cos you get some stuff for free and in other cases because you pay as you go rather than upfront. But there are still loads of places with really poor internet speeds and if you haven't got a good connection then cloud computing is painful! Also, not every startup needs lots of IT power, some just need a laptop, word processor or spreadsheet!
If you are a larger funded startup then Cloud gives you stuff like virtual servers - flexible power without the upfront investment, so you can use your startup funds for the stuff that is going to bring in business. But clearly if you look at the cost over a 4 year period then a virtual server can be more expensive than buying your own server. So from a financial point of view there are advantages both ways and like a lot of things it depends on what you need, what you've already got and what you like spending money on!
I think the real power of Cloud is in stuff like apps that run on your phone, tablet or laptop and means that communication with the customer can become faster, more efficient and more personal. At the end of the day business is about delivering a good or service in response to a customers need and getting paid for it. For me this is the real power of the Cloud – but there again something new is no doubt being invented that will completely change how we use connectivity so this answer is for now, not the future.
Jonathan

posted 2 months ago

Dennis E.

Technical project manager online media with broad experience in application and infrastructure development

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Especially for startups & SMEs it depends on the type of organization.

If you are working with a few people in a traditional office environment cloud computing is not likely to be a big advantage over the traditional local network setup. (not considering the potential cost difference between local licenses vs cloud subscriptions)

But if you run an organization that people constantly on the road who need to access the companies information from everywhere going in the cloud is more likely to be beneficial.

For example;

If you are working in a traditional office a Microsoft small business sever with local e-mail and office does make sense.

But for a company of road warriors using services like Gmail, Google Apps and/or Microsoft Office 365 solves availability and (document) synchronization issues.

Regards,
Dennis

posted 2 months ago

Umair S.

Analyst at Web Notes Technologies (www.erpnext.com)

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Hi Ravi,

Its very crucial for sme and startup to have IT infra available for providing quality services to there nurturing customer base. But its very cost for company to manage IT infra on its own.

Cloud computing allows small business outsourcing IT infra related activities to specialist and focus on there core-competency and use cloud base technology which will provide them accessible and broader exposure to scale there operations and sales.

Thanks and regards,
Umair Sayyed

posted 2 months ago

Dhananjay W.

Co-Founder at Zilicus

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Cloud computing is quite broader term to decide its criticality.

I won't repeat 'It Depends stuff' & rather state two groups of cloud users

1. Companies/SMEs who wish to "build/deploy" solution(s) in cloud
2. Companies/SMEs who wish to "use" cloud based solution(s)

For the first aspect, based on my own experience I would say - Cloud (IaaS, PaaS) is a boon. It was difficult to image 7-8 years back if I could have rented servers & deployed my application on these servers so easily? Today, we have a choice of selecting secure & reliable cloud from e.g. AWS, Rackspace, Liquidweb, Eucalyptus, Linode and others.

The learning curve is much lesser & I don't need an administrator just to configure servers for my application. The job is much easier now. Obviously it saves money, ensure equally secure deployment & still has option of scale up/down as it desired.


For the "users" of cloud based application (for larger part of these application, as we call it Software-As-A-Service or SaaS); benefiting of SaaS applications are
1. Vendors can pass on the cost-they-save to you
2. Pricing is transparent, everyone can see it. Generally you won't feel cheated
3. Getting started is so easy - Register & go
4. In its intrinsic form, SaaS solutions are not expected to be complex hence the learning curve much lesser
5. Scale up application as per your requirement - on the fly
6. For security & reliability, you have SLA to ensure it
7. No Capex. The Opex is as per your requirement; have freedom of cancelling it anytime

In short, SMEs are going to benefit greatly - enterprise-class applications are avaiable at transparent & affordable prices. Most importantly, cloud based solutions have given SMEs choices without requiring any commitment. (be it Dropbox, SalesForce.com, Google Apps, Zilicus or many other solutions)

I wrote a blog post a while ago. You may find it useful to read.

Links:

posted 2 months ago

Matt W.

Network and Data Center Architect at TOA Technologies

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Extremely critical. Smart use of cloud computing can provide a huge competitive advantage to a small business. Unfortunately, it's also a bad idea for most.

The problems have been the same since we were calling cloud computing application service provision - the large majority of small businesses and startups are completely unqualified to make a smart decision when it comes to choosing a provider. They don't know what they really need, and they are unable to tell what the provider actually provides - which makes them also unable to realistically evaluate what is a good deal and what isn't.

The problem is compounded by the fact that every cloud computing service you subscribe to is also going to be a business partner. The nature of the relationship dictates that. Choosing a business partner based on marketing materials, which is all most small businesses have to go on (being unable to ask the right questions), is not a smart way to do things.

Things will get better. A big problem is that most cloud computing services are fairly new, and so lack robust product lines. Ideally, you'd want a less feature rich app to start with, paying primarily for availability, future updates, and the collaborative features the cloud is so good at. And then the ability to subscribe to more features as your business grows and your needs change. As it stands, many times companies are forced to spend on features they won't need for quite a while. Or they get features they think they need at a discount price, unwittingly sacrificing availability and financial stability on the part of the service provider. Or they lock themselves in to a service that can't grow with them.

Moving from one cloud based platform to another can be nearly as painful as migrating desktops and servers. You don't want to do it if you don't have to.

There are some nearly no-brainers. Google Apps gives you email infrastructure that you could never afford for next to nothing. Plus collaboration. But when you get to industry specific solutions, it becomes more difficult to choose the right service, even as choices narrow.

posted 1 month ago

Markus A.

Consultant/Entrepreneur at M2 Financial Modeling Group

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I believe Cloud offers many opportunities to SMEs and Startups. However, when using cloud services for storing company data on a remote server owned and operated by others, I would be mostly concerned of the privacy and security issues.

As a potential business user of cloud services, my first priority would be to ensure that the privacy and security of the files I'm going to deploy on remote servers are fully guaranteed. Currently, it is pretty hard for out outsider to evaluate how safely the files lie on a remote server. I believe this side is not communicated clearly enough to potential users.

I believe there would be huge opportunities to use cloud architecture in many business softwares, for example. To utilize clouds effectively, it will often require storing of very sensitive data to a remote server which makes it immediately a problem. Further, as I understand, at least in the US the usage of clouds are in certain cases restricted by law.

posted 1 month ago

Sudarshan S.

Product Evangelist at ClickDesk

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Hi Ravi,

I think it's extremely important, if you're running a tech start up offering a SaaS or a web hosted product, then it almost directly answers your question.

For e.g our product ClickDesk is a cloud hosted live chat service. We used Appengine and we hit 30m impressions in just under six months. Live chat as service is extremely efficient rather having a software to be installed in the server and in client machines, there is very little or absolutely no down time.

Obviously there is a lot to learn with Cloud Computing, but that will still hold true for a lot of other platforms as well. Cloud Computing is critical and definitely a thing we will hear a lot about in the future as well.

Links:

posted 1 month ago

Paul C.

Owner of start up and small business software business and promotional product supply business.

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Cloud computing is the technology that allows SMEs to complete again large corporations.
It gives the small business owner the power to run their business in an efficient and cost effective way.
No longer are business owners tied to our desks as cloud software allows us to run our businesses from anywhere at anytime.
It gives us speed, flexibility and the ability to manage large project simply and easily.
Using technology like evernote, workflowy, web base email systems, CRM and workflow software (such as SpinLessPlates), hootsuite, google apps, etc lets us run our businesses very cheaply and flexibly.

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posted 1 month ago

Preetam C.

Google Adwords certified

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Cloud computing is all set to revolutionize the way we compute and communicate with each other. It is so that a lot of work still needs to go in, but many significant developments have already been done over the last couple of years and if you have a small business you could be immensely benefited from cloud computing. The following are a couple of benefits that could directly impact the way you do business:


Reduced cost – If you have a robust cloud computing platform in place, you do not need to shell out a lot of money for buying hardware such as computers and all other things related to setting up computers. You don’t need to buy expensive software and software licenses (and upgrades) for networking management and information technology infrastructure. You just need to pay for whatever you use and nothing more.

Scalability – Almost all cloud computing service providers offer pay-as-you-go plans and hands it can just pay for the storage needs of your business. You don’t need to pay for expensive software and stuff to find out how much web space your business requires – you just pay for whatever is being used.


Automatic updates – If you have a small business, your information-technology department must be spending sleepless nights worrying about updating your software that play a crucial role in your business. With cloud computing in place, you don’t need to worry about updates at all – automatic updates are provided and you don’t need to worry about ablation of software and hardware anymore.

Access from remote locations – One of the biggest benefits of cloud computing is that it allows all your employees and shareholders to update, receive and share information from remote locations; you can just say goodbye to your back office!

Better security – It doesn’t really matter how expensive hardware and software you have – if there is a fire or an earthquake, your hardware is going to go for a toss and so is your data! If you go with a reputed cloud computing service provider, you can just get back to work after the hurricane is over and run your business smoothly as long as you have an Internet connection without having to worry about data loss.

Easy to implement – Frankly speaking, if you have cloud computing services installed, you’ll need a lot IT people on your payrolls – cloud computing is very easy to implement and even a 10-year-old can take care of everything!

Skilled professionals – It doesn’t really matter how skilled your staff are; there is always the risk of your data getting corrupted or lost because of unforeseen problems. That is not going to happen with cloud computing because the service providers spend tons of money on security solutions and have very skilled professionals take care of your data.

You can brush shoulders with bigger firms – If you embrace cloud computing, you can play in the same field as larger businesses by using the same tools they use.

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posted 1 month ago

Stefan T.

Founder, Group CEO/Chairman at WinWeb, Founder & Editor at The Small Business Blog, Chair of IoEE Advisory Council

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Hi Ravi,

Cloud computing is important for any business.

With customers demanding 24/7 attention, cloud is the only way to deliver, especially for small businesses, who can not afford 24/7 staff.

Mobile technology, cloud computing and social media (also cloud) are the new paradigm for engaging clients and getting the online word-of-mouth going.

All-in-One providers provide you not only with your software, but with your complete IT platform. The benefits are clear, you can focus on your business, less rabbit holes and distractions.

I wrote an article about this a few days ago, please have a look. There is also a list of 200+ benefits of cloud computing, see how that compares with niche vendors vs all-in-one vendors or boxed products.

VB, Stefan

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posted 1 month ago

christine S.

Marketing Coordinator at Atum Corporation

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You've received some great feedback.

Cloud Computing and services are going hand in hand with startups and small businesses. It's almost critical that a startup has a cloud service in place, because most companies rely on sensitive data, CRM, ERP etc, but do not have the initial funds to build an enterprise level infrastructure in house. Not to mention, the staff required to manage and monitor an infrastructure, hardware and software maintenance is well out of means for most businesses just starting out.

The upfront, overhead and ongoing cost-savings, plus instant scalability features is a HUGE benefit and value, particularly for startups.

I think where Startups will see the MOST value is in Managed Services. Eliminating an in house IT department, and relying on Virtual IT services will drastically simplify IT management, cut overhead costs and boost overall efficiency in any sized business.

Links:

posted 28 days ago

John P.

Business Development Professional

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Best Answers in: Enterprise Software (3), Telecommunications (2), Software Development (2), Customer Service (1), Business Analytics (1), Manufacturing (1), Business Plans (1), Computers and Software (1), Information Storage (1), Web Development (1), Wireless (1)

Wow. So many "cloud experts" so little information. Only a handful actually describe the issues that a startup faces, likely because they've never actually "done" a startup.

Capex vs Opex. That is how critical it is.

Take a look at the Animoto example (there are a plethora of others now). Animoto was a handful of college students who had an idea. It was a complex idea, but guess what, Amazon's EC2 had everything they needed. They started and then had another brilliant idea, they would offer free videos to all facebook users. Their usage jumped from 5-10 servers worth to 5000 servers worth overnight. EC2 kept up. A typical datacenter (or hosting provider or isp) would have failed and taken your business with it.
Animoto continues to succeed and grow today.
What startup has a datacenter that can expand and contract regularly? Those that use a Rackspace or EC2 type Infrastructure As A Service, that's who...oh and they use ubuntu, too.

posted 12 days ago

Pankaj T.

Marketing, Content and PR specialist at HyperOffice

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Best Answers in: Web Development (1), Using LinkedIn (1)

Maybe you'd like to read my article - the strategic potential of cloud collaboration software. The arguments mostly apply to cloud computing in general. It allows companies to:

- operate beyond scale
- closely integrate external resources in company processes
- better customer service
- better tap organizational knowledge

Links:

posted 12 days ago

More Answers (38)

Tony L.

Enabling change, enhancing management control and delivering results that exceed your expectations

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Cloud solutions provide SMEs with enterprise style support functions without the cost and complexity associated with these implementations.

However, it is critical that business leaders review their actual requirements and choose a solution that is relevant. It is all too easy to get caught up with functions/ capabilities etc that are just irrelevant to most SMEs.

Tony Lockwood

posted 4 months ago

Pauline F.

Director, Stepping Up North East & Owner PRF Solutions

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If you work alone in one location, probably not a lot to overwhelm yourself with here. If you work with others or tend to be out and about a lot, it can be really useful.

I use Dropbox - you can get quite a lot of storage for free. This helps to keep some documents that I want to share with colleagues - we save to Dropbox those things we want each other to access. It also means that I can access documents from a remote computer or laptop if I'm out and about. However, a flash drive or portable hard drive does the same.

Be aware of security - do you want to trust your business to something remote? How do you know where it is? Like anything, there are pros and cons and only you can decide what is right for your business

posted 4 months ago

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