Cloud Computing: Why It Is Good For Small Businesses

Small enterprises often grapple with restricted resources, tight financial budgets, and limited operational capabilities. They often find themselves in a tight situation while deciding where to invest. If you’re that small enterprise looking to find a future-proof technology, Cloud computing is a perfect solution for you. Cloud computing stands out as an advantageous solution, offering an affordable and accessible avenue for small enterprises to access requisite computing power without the burden of costly hardware or intricate IT systems. In this blog, we will dive deep to find out how cloud computing can help your business by making it competitive.

What is Cloud Computing

Cloud computing is a technology that involves delivering various computing services – such as storage, processing power, databases, networking, software, and more – over the internet (referred to as “the cloud”). 

It means that without requiring software or database installed on your local server or a personal computer, you can use applications/ software via the internet. Cloud computing enables access to a shared pool of configurable resources that can be quickly provisioned and released with minimal effort.

This technology offers a range of services and functionalities:

• Storage: It provides users with data storage capabilities, allowing them to store and retrieve information as needed.

• Processing Power: Cloud computing offers computational power for running applications and processing data.

• Networking: It includes services that enable connectivity between resources and users, ensuring smooth communication and accessibility.

• Software: Users can access applications and software via the cloud without needing to install them on local devices.

Cloud computing operates through various models such as Infrastructure as a Service (IaaS), Platform as a Service (PaaS), and Software as a Service (SaaS). Since this blog is mainly concerned about small enterprises or businesses, we keep our discussion mainly focussed on SaaS.

How Cloud Computing Can Help Small Businesses

• Improving Productivity: Saas (Software-as-a-Service) is a vital component of cloud computing. It gives you access to cutting-edge technology and allows you to stay on top of your game. A perfect example is Google Workspace. Formerly known as G Suite, Google Workspace assists individuals, teams, and businesses with productivity tools – Gmail, Google Drive, Google Docs, Google Sheets, Google Slides, Google Calendar, and Google Meet. 

• Improving Transparency: In this dynamic world, regulations and compliances are constantly changing. In such a scenario, cloud-based solutions like Cloud ERP or Cloud HCM ensure compliance. The on-premise versions of these solutions entail significant investment, as you need to procure and set up the hardware. Additionally, maintaining an IT team becomes necessary to manage these systems. With the advent of cloud computing, this landscape has transformed, as ERPs/HCM solutions are now available as Software as a Service (SaaS), where vendors handle all these requirements for you. Furthermore, new regulations can be seamlessly incorporated and disseminated as updates, without causing any inconvenience for the customers.

• Making you Competitive: As you start growing, managing customers becomes challenging. To reach out to new customers and manage existing ones, you need applications like CRM (customer relationship management). Gone are those days when the word “CRM” brought to mind an image of a bulky and expensive software that requires an entire team of IT experts working solely on installing and maintaining the system. Cloud CRM solutions are more technologically advanced and user-friendly. And, they come at a lower cost as compared to on-premises. Furthermore, you get features like real-time visibility to data, mobility, and scalability.

• Reduces Risk for Worst-Case Scenarios: While numerous small businesses utilize on-premise applications, their limited disaster response capabilities become evident. Operating a small business involves numerous concerns, making it seem extraneous to plan beyond daily operations. Transferring crucial data and business procedures to the cloud supplies the necessary redundancies to prevent loss of essential data or functions during a disaster.

Summing Up

From gaining access to powerful productivity tools, reducing IT overhead costs, and becoming more agile, Cloud Computing makes small enterprises more competitive in the marketplace.