Business : What is Cloud computing for small business?

The term cloud computing is being mentioned everywhere, especially amongst business software providers and clients such as small businesses and entrepreneurs who will really be benefiting the most from this new approach to buying software. No longer do you need to fork out large sums of money for software programs that you only use a fraction of, you can now access the software you need, when you need it at a fraction of the price.

In simple terms, it means the cloud should just deliver a service on a subscription basis, allow access from anywhere and provide economies of scale.

Keeping things simple - Cloud Computing is putting software and data on computer equipment in a safe and secure location "somewhere" on the Internet, the location doesn't matter as long as it is "well connected" meaning access to this data or software from anywhere in the world is possible.

Problems solved by Cloud Computing

One area it addresses for the business is investment in equipment. For instance a small business in the near future will be able to "rent" the services they require without any capital upfront costs, no hardware maintenance, no office space requirements, no hardware or software going out of date, no backup issues - the list goes on and on. It is easy to see the appeal - pay a monthly cost and have all your IT requirements sorted - no hassles!

Impact on the future working patterns of SME's

As we'll be able to setup shop anywhere, plug in to the Internet and go, it will have a fundamental change in our working patterns. You can access all your data and line of business application anytime any place. There is one caution - Internet connectivity without it you are very exposed in a business sense. So connectivity is critical & key.

Cost saving opportunities that might arise

As you don't need the entire infrastructure associated with a typical server/desktop deployment, any cost savings are short or medium term. No air conditioning in your server room, no IT staff required, no hardware maintenance, no backup issues etc. In the long term if the lease/rental model is adopted then you will undoubtedly have paid over the odds compared to owning equipment outright, but you've almost certainly had less problems along the way - can you put a cost on hassle free computing?!

Can small businesses adopt it now?

I believe probably the biggest offering cloud computing has to offer is aimed right at the SME. It is ready now, the only caveat is connectivity - all business must have reliable fault tolerant Internet connectivity, without it they will cease to function in an IT sense.

Potential security risks associated with having data 'in the cloud'

If anything security couldn't be better. All your data is on the best hardware, in the most secure physical environment, power protected, continually monitored, continually updated, run by the best IT staff. You couldn't ask for more! There is no such thing as 100% safe but it is the next best thing!

What are South African entrepreneurs doing with the cloud?

Businesses such as Business Plan Whiz, which is a provider of business planning and accounting software for small businesses are already taking advantage of cloud computing to provide more secure, regularly updated, access from anywhere cloud computing services to entrepreneurs in South Africa.

Some of the key benefits of Cloud Computing for Small Businesses are:

Accessible from anywhere. Yo can now access both your software and material saved on it from anywhere. No more complicated software installations, lost memory sticks or disks. Access your stuff where you want when you want.

Lowered Costs - Cloud Computing offers tremendous advantages to small and medium size business in terms of reduced costs. You pay for what you use.

Automatic Updates - The software is updated on a regular basis. No more purchasing of expensive upgrades new versions every year. You are always using the latest version of the software.

Remote Access - Employees can access information wherever they are, rather than having to remain stationary much of the time.

Green Computing - Cloud Computing uses less energy than traditional data centers which is important to many in this day and age.

Ease of Implementation - Without the need for implementation of hardware and various other components which can take several hours. You can be running your business in almost as much time as it takes to setup a FaceBook account.

Even playing field for small startups - This allows small companies to compete more effectively with some of the larger businesses. This balances the playing field.

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