Cloud is the Strategic Business Enabler
Cloud computing has been described as the future of IT infrastructure provision and a boon for small and medium business (SMB) with ambitious plans for rapid expansion and a desire to use best of breed information technology solutions.
Adoption of cloud computing is a strategic decision that will help SMB organizations tackling the inherent problem of having limited information technology resources to provide agility to their needs.
Cloud computing offers a technology utility option, via the use of the Internet that saves massive costs whilst providing the technological tools and services SMBs need to sufficiently and competitively operate.
SMB in most countries make up a large proportion of its GDP and is the reservoir of future growth of the country’s economy. SMB’s have traditionally been faced with technology options that are expensive and risky; therefore there has never been a better time than right now for the uptake of cloud computing by the SMB which is a much needed ‘technology break’ at affordable rates.
Cloud computing has made headways across industries globally, positively impacting organizations IT infrastructure – improving business performance and effectiveness.
SMB Business may not have the required skills to investigate the cloud computing option thoroughly and hence the importance of their trade association in being the bridge between vendor and user for selection of the right cloud computing services.
This will help SMB select the right cloud computing which will be secure and viable and it can benefit from cloud computing technology that is perfectly suited for its business.
The leadership needs to understand and appreciate the following:
- § Cloud computing will increase business efficiency, productivity and lower IT costs
- § Cloud Computing need to be a top technology priority for SMB to boost their business throughput.
- § The usage of a computer or equivalent end point device and some form of connectivity is required to effectively use cloud computing and geographically no infrastructure overhaul is needed
- § The Return of Investment of cloud computing can be seen quicker than through implementing new infrastructure for various IT needs in a business.
- § SMB benefits by the use of the OPEX model offered by the cloud rather than the traditional CAPEX model for Technology investments.
Cloud computing and SMB
Every SMB is always short on money and loaded with ideas and innovation and the ability to take risks. Irrespective of the nature of it business Information Technology has become essential to reach out to a flatter world and also ensure agility and efficiency. The Cloud is the ideal platform not only for SMB’s dealing in technology but also in any other business whether is advisory, trading, retailing, health care, niche services, tourism, teaching the list is endless.
The Cloud provides a method of pay as you use, or in other world replaces capital costs with operating costs, this eliminating the uncertainty on technology investments.
The cloud provides most times a free computing platform for services like email, blog, customer relationship management, project management, sales management, enterprise resource management, accounting and other business solutions.
Thus any SMB can start the business with the world's best technology solutions working for them for most times free or sometimes for nominal costs.
The SAAS solutions in the Public Cloud will be ideal for the SMB
The barrier to SMB adopting the cloud is their diffidence in using superior business solutions for their small business, they think it is too much of time and hassle and it can wait.
"Getting it Right the First Time” is essential and putting in place a Technology driven Business will be a strategic & rewarding initiative for any fledgling business.
An SMB business that did not have a CRM (Customer Relationship Management) , but once they implemented an economical CRM on the cloud they could measure their sales efforts and act on the customer leads efficiently.
Another SMB company uses Zoho services for their email and office automation and key business processes with resounding success; they get world class communication and collaboration tools which are normally available only in large corporations. With tablets they look contemporary and are connected to their Business applications Anytime Anywhere.
In a world driven by near instant communication SMB need to have the right tools and solutions to delight their customers and grow their business and their wish list will be fulfilled by solutions in the Cloud.
As the world looks forward to recovering from recession to growth it will the SMB will bring the change and much needed stimulus to the economy and the solutions in the Cloud to help them to make the difference.
Some of the business solutions they can use are available from ZOHO, Microsoft, Google, Salesforce and many more, they just need to get on to their browser and search for what they need.
The Risk Reward in using the cloud is positive and provides significant residual energy for SMB leaders to grow and nurture their business.
Barriers to Cloud Adoption by SMB
Cloud adoption by SMB business has been slow though early adopters have reaped the benefits of business agility and efficiency by leveraging on the Cloud. It is important for the SMB to understand the barriers to cloud adoption and how to overcome them.
Security
Most people fear losing control of their computing facilities and this translates into doubts about the Security of the Cloud.
Though the CSA Governance Model is exhaustive most large cloud service providers comply with its guidance there is a great reluctance to Trust the Cloud.
The ENISA has also created an excellent guidance on cloud security.
SMB business needs to have TRUST in using Cloud computing before taking to the cloud.
They may also want to explore the security posture of their current in house technology infrastructure.
Data Interoperability
Once I upload my data I will never be able to get it back again, and even if I do get it back the format will be useless for me to use off the cloud.
This again is unfounded except when the data is created in a SAAS system since the data is not interoperable to any other system other the SAAS system in most instance.
But the Standards are being evolved and a little patience and understanding will show that data migration need not be the show stopper.
Data Loss in the cloud
There are so many instances of data being lost in the cloud, what I will do if I lost my data. The Information Lifecycle Management is most robust in the cloud but still the fear of control and anxiety and the hype of few kilo bytes of data being lost while managing tetra bytes of data by cloud service providers is not even considered.
Also in most cases of data loss the data has been restored, though there have been exceptions where data has been lost forever. But still if we statistically compute the ILM in the cloud will pass the Six Sigma Test.
Cost of the Cloud
Many believe that they cannot have long term cost contracts for the cloud, this may be true in most cases, but because of competition the cost of services in the clouds will only reduce as more people adopt the cloud.
The Cloud is all GAS
Many believe that the Cloud is a Marketing invention and not founded on strong technology platform. This is far from the truth; the cloud is an amalgamation of some of the best computing technologies and processes for reliable, resilient and secure operations.
Traditional Technology Marketing
Traditional technology Marketing strategy will not work for cloud computing. Cloud computing is a utility and has to be marketed like other utilities namely electricity, broadband, water are marketed by the companies. The traditional technology cycle will not work for cloud adoption and cloud services sales.
A new fresh approach and an energized team is need to evangelize the user, since once the user logs into the service provider everything is digital including payment and deployment of cloud services.
Economic Value Added – EVA is a reliable financial measure of cloud benefits
Economic Value Addition is the best measure to assess the financial benefits of cloud computing.
Other traditional models will not suffice to monetize cloud benefits. A selective approach is the key strategy to migration to the cloud, but one needs to define definitive outcomes and milestones for total transition with always the strategic & financial benefits as the final measure of success.
Cloud is a Disruptive Technology
Cloud is a disruptive technology which and people resist “Change”; cloud is a great computing utility for business innovation and business excellence.
Small and Medium Business owners will be the early adopters of Cloud computing and will derive the benefits offered by the cloud.
One small step but one giant leap
Steps in Leveraging on the Cloud
The first step is to take the companies email and office automation to the cloud and also create a blog, if you do not know how to do it take help. Remember you have a business to manage and cannot do everything yourself!
Once the basics in the cloud are stabilized then it is time to prioritize on what you need next based on your business, it could be the CRM , the Accounting package, the project management package or even a service process engine or a specialized design solution available on the cloud.
Conclusion
It is clear that SMB businesses need technology for continued growth of not only the business itself, but certainly the broader economy as well; cloud computing offers this growth opportunity.
