Technology of the Future: Introducing the Benefits of Cloud Computing
Software as a Service, more commonly known as Cloud Computing, has been around since the mid 1990’s. However the surrounding hype, awareness, and usability regarding the technology have increased substantially in the last 5 years. If you aren’t already familiar with it – we want to provide some valuable information regarding the opportunities and benefits of Cloud Computing.
For those of you who approach change with caution, we have good news - it is highly likely that you are using it without even knowing it! If you have an iPhone, iPad, or use internet based email (Yahoo, Google, AOL, etc.), you have already gotten your feet wet in the Cloud!
What is Cloud Computing (or, SaaS)?
The word ‘Cloud’ is synonymous with ‘internet’, and ‘Computing’ describes an architecture where individuals and companies can ‘rent’ technology services on the internet, rather than ‘owning’ their own on-site. While some cloud technologies are free, (like the Yahoo and Google based email mentioned above); others with more substantial infrastructure (like CRM and ERP technologies) can be rented for a fee. The best analogy would be to compare it to electricity. You don’t create and store your own, rather, you pay the electric company to do the hard part, and you just use and pay for what you need.
The Benefits of Cloud Computing
- It’s an affordable option for those who do not wish to purchase, install, host and maintain software in house.
- It provides for reduced costs in regards to upgrades, servers, storage and IT.
- You get easy access to data from any internet-capable device.
- It has an easily scalable, ‘pay only for what you need’ structure.
With Forrester projections for business software in the cloud expected to reach $225 Billion this year, you can be sure Cloud Computing is not only here to stay, but will likely be the preferred technology of the future.
Cloud Opportunities and Options
The Cloud provides numerous options for Small and Midsized Businesses. Some of these include:
Ultimately, cloud computing allows your business to expand capabilities and increase capacity without investing in costly IT infrastructure by hosting applications and files are on the internet, not your local devices. Of course, there are always additional considerations you need to be aware of with this model, and new cloud offerings are springing up every day. We will explore these and share the ways you can take advantage of the cloud in the coming weeks.
In the meantime, should you be interested in how the cloud works specifically with ERP technology, take a look at this whitepaper:
“ERP in the Cloud: What You Need to Know.”