Cloud computing is being touted as an ideal data storage and workflow application solution for all kinds of companies, from brand-new startups to established multinational corporations. Startups can use cloud computing’s scalability as a cost-effective way to bring their innovations to market without a prohibitive capital outlay. Large companies desire cloud computing services as a way to streamline their business costs. While startups select cloud computing services as a complete cost-effective solution, larger companies may be testing the waters with non-critical applications. As cloud computing services become more secure, more and more companies are recognizing the benefit of migrating towards this solution.
Startups, small businesses and seasonal businesses benefit from cloud computing because it allows them to scale up or down as necessary, using—and paying for—only the server capacity that they need. When a startup isn’t sure how or when business may grow, they can feel secure knowing that their cloud-based system will grow with them. And they don’t need to outlay an exorbitant amount of capital to support servers as well as the housing, cooling and maintenance that servers require. When businesses are not required to invest in server equipment costs, this significantly reduces their time and costs to get the product to market.
Since cloud-computing applications are customizable and extremely user-friendly, not a lot of time or money is wasted in training employees to use the system, or in employing IT folks to troubleshoot problems. Accessing information and workflow in the cloud also means that employees don’t even have to have a desktop PC, a desk or even an office; as long as they are equipped with an Internet-ready device, like a laptop, netbook, smartphone or iPad, they’re good to go. This makes a lot of sense for small businesses who are struggling to get off the ground.
Larger companies enjoy the same benefits from cloud computing, as well as some additional ones. The ability to have a call center or help desk located remotely can dramatically decrease costs. Productivity is boosted by storing information in the cloud, since any authorized employee—whether they are located in the home office in Miami, the branch office in Dallas, the international office in Prague, or on the road in between—can access the same materials that are continually up-to-the-minute. Sales reps and marketing managers can slash their administrative duties, thereby freeing them up to work smarter.
Cloud computing costs are often compared to dedicated server costs and shared hosting solutions. Depending upon the applications hosted, costs for dedicated servers may vary. A small business seeking to utilize a server for 700 to 800 hours per month may pay around $24.95 per month for shared hosting and between $90 and $140 for cloud computing services. Alternatively, business owners may purchase a dedicated server for $55 to $100 per month.
At first glance, cloud computing seems slightly more expensive than the other two aforementioned options. However, cloud computing offers the customer maintenance, free upgrades, and data encryption. Many cloud computing vendors only charge pennies per hour in operating costs. Some companies will even offer cloud computing services for free, if the daily usage is limited. Most dedicated server and shared hosting companies require that customers maintain the applications and servers through their own IT department. Therefore, small businesses assume the expense and time lost associated with repairing errors that may occur. This is just one reason that companies are migrating towards cloud computing.
Companies who prepay for cloud services will receive the best prices overall. Experts estimate that a cloud computing data center can operate 100 servers for nearly $38,000 per year, or $5 per hour. Customers who enter a cloud computing contract may receive better rates. This allows vendors to predict their expected profits for the year.
According to some estimates, the desktop computer is going to be obsolete within the next three years. This means that any applications stored on the office server are going to be hard to access, unless you make the move now and migrate them to the cloud. Whether you are a startup with two guys working out of a basement, or an international business with locations across the globe, cloud computing makes good financial and business sense.
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