Cloud computing is among the many new innovative uses of technology and the Internet in today’s world. It is not surprising that nearly one-third of surveyed small business owners are unaware of the complexities that cloud computing has to offer. Of 1500 small and mid-sized businesses surveyed, nearly 59 percent had some knowledge of cloud computing services, but were not working to convert. By definition, cloud computing is a term used to describe the process of using technologies such as the Internet to access services such as applications, virtualization, and storage. With cloud computing, services are delivered and subscribed to on demand through the Internet. This method eliminated the need for software purchases and infrastructure as software is lent according to the needs of the business via the Web.
Cloud computing has revolutionized small businesses for various reasons. Mainly, cloud computing drastically cuts productivity costs by ridding the need for hardware, servers, software for PCs, and upgrades. Similarly, businesses run the applications needed without having to utilize internal services, thereby greatly reducing power usage and cutting costs. Since all services are outsourced to external servers, there is little to no maintenance required because hard drives are freed, producing faster processing speed, the ability to integrate applications, and faster communication abilities. Limiting the need for computer maintenance places less emphasis on the need for IT staff, which are costly for small businesses. Cost cuts as a result of cloud computing has become critically important to small business owners and a key to their success financially.
Cloud computing opens up new opportunities for new businesses are other small businesses with limited access to resources. An advantage of cloud computing is that businesses can be run with merely a few computers and Internet capabilities. Location of businesses is not longer a primary indicator of success or failure of a business since sophisticated technologies can be utilized from anywhere. Larger storage capabilities and optimal power allow even small businesses use of complex applications and scientific computing software.
Critics argue that cloud computing limits the freedom of users to control the data that is stored on external servers. Similarly, critics fear that cloud computing limits privacy. Some note that accessing centralized servers relies too heavily on administrators as a means for installing new applications. However, many view these points as benefits. Proponents argue that cloud computing ensures safety and security of personal data, since it all stored on a single server. There is less of a chance of data loss due to computer hard drive defects because information is readily available through the Internet. Already, people are utilizing Web email and photo services, which safe guard information under secure servers, much like those of the military. Proponents also acknowledge that personally installing new applications on PCs sparks the risk of compatibility errors and other software complications. Outsourcing to another server limits the risk of program errors by placing upgrade responsibilities in the hands of the service providers.
Customer satisfaction and sales are the key goals of new and small business owners. Cloud computing offers opportunities for businesses to take full advantage of the latest user-friendly marketing and sales tools available on the Web with the the hassles and pains of software installations and maintenance. Small businesses, more than others, need to cut productivity costs wherever they can. Cloud computing offers new opportunities for businesses to save money by relying on external servers and the need for expansive infrastructure. Integration is now faster and simpler as services are powered through alternative sources. With a plummeting economy, cloud computing is the answer to many small businesses that are suffering financially.
