Cloud Computing for Small Businesses: Is It Worth the Investment
The cloud market is growing exponentially, and the industry is expected to grow more than $700 billion in 2025.
But is it the right technology for small businesses? Should small businesses invest in cloud storage solutions?
We’ll explore how cloud-based business applications are feasible and what can they do for Small and Medium Enterprises(SMEs).
Cloud Computing – An Overview
In simpler terms, cloud computing involves using an online storage system for running and storing your services, products, data, etc. These storage servers can be placed anywhere and the users can access the information remotely.
The users can connect to the central database via a strong internet connection and access the information as needed.
How Does it Work?
As highlighted earlier, cloud computing allows storing data on remote servers instead of storing it physically on hard drives or local servers. Services that can be hosted on the cloud include:
- Infrastructure as a Service (IaaS): Provides essential infrastructure for networks, storage, and resources required by any organization.
- Platform as a Service (PaaS): Offers a complete platform of services required to access and run programs and applications as needed.
- Software as a Service (Saas): Allows users to connect to the software online.
Organizations choose the type of cloud service based on their requirements. In addition, a company can pick multiple cloud services i.e., a PaaS with a SaaS.
Benefits of Using Cloud Computing
Using cloud computing, businesses and companies can obtain several benefits, including:
Faster Deployment
Companies can accelerate deployment with cloud computing by easily integrating, removing, or adding new software or programs to the company’s database without hardware.
Just by using cloud services, the company can add programs and software, integrate them within the database, and allow access to every user. The developers can access this tool/ software and accelerate development for whatever task they need.
Easily Scalable
Perhaps one of the greatest advantages of using cloud computing is that it is scalable. Instead of adding more hardware, cloud storage can be increased or decreased with needs.
Enhanced Collaboration
With everything on cloud storage, the users can access information without any hassle. It doesn’t limit access and remote usage is seamless. As long as there’s internet near you, data on the cloud can be accessed when authorized.
Better Security
With cloud computing, companies can easily protect their data. The cloud service providers offer robust security solutions, securing the data of multiple clients associated with the service.
Cost Savings
Choosing a cloud service is affordable as it makes scalability and flexibility easier. Companies don’t need to invest more resources for upgrades.
Benefits of Cloud Computing for Small Businesses
Cloud technology is quite favorable for small and medium enterprises (SMEs).
Enhanced Productivity
When SMEs outsource their infrastructure or storage to cloud service providers, they foster productivity. They can focus on improving important elements of the business such as product/ service quality.
Moreover, using cloud services, the companies can easily integrate data needed for developing the products as needed. This enables the company to take swift decisions required for scaling the business’s operations.
Better Communication
Since the cloud consolidates the information in one place, it’s easier for the associated resources to access this information anytime and anywhere. Once authorized, the employees can access the data required for development, marketing, or information purposes.
This plays a key role when reaching out to potential clients. The representatives can easily access the information they need, provide practical insights, and secure the deal.
Reduce Operational Costs
As mentioned earlier, cloud computing decreases operational costs for the companies. Using this opportunity, SMEs can benefit in several ways:
- Minimize the operational costs, which is one of the important participles of scaling an SME in the initial run.
- Use the available resources to develop existing products/ services or add more to the company’s portfolio.
Using cloud computing, SMEs can minimize their financial drain on IT services. One optimal cloud solution and the company knows the expense it needs to pay. Moreover, with this option, the company reduces associated processes and the time needed to accomplish them.
For instance, every month, the company needs to pay for its IT services, add billings to the ledger, and maintain the inventory. However, with a cloud solution, the company can easily manage IT billings using automatic billings.
The vendor can schedule a monthly payment or get paid yearly, minimizing the need to run manual processes.
Better Security for the Data
Cloud integration provides more security for the company’s data. From SSL encryption to end-point monitoring, and robust network audits to security automation, cloud service providers for SMEs use numerous security measures.
This is great for SMEs since they cannot afford to lose or face a data breach at their level of business. Even if the company grows, the threat of a security breach remains imminent, which is why cloud services make an ideal choice.
Easy Resource Accommodation
Cloud computing for small businesses can easily accommodate resources without any hassle. For instance, the company can look into adding an AI-based chat model within its customer services.
Using cloud services, the company can easily add the tool/software required and integrate it widely. Again, if this tool isn’t required, then the company can exclude the tool from the cloud’s database without any hassle.
Is Cloud Computing Favorable for Small Businesses
Yes, cloud computing assists small businesses by:
- Reducing operational costs
- Making it easier to communicate remotely
- Offering a wealth of storage
- Securing data by acquiring backups or conducting audits becomes seamless.
- Allowing companies to focus on more important elements of the business
- Easing software integration, addition, or removal than traditional operational methods.
The Threats of Cloud Computing
Even though cloud computing has potential benefits, it has some downsides that SMEs must consider.
Lack of Control
Since a company hands over its entire database to the cloud provider, the company loses control in terms of privacy. The company’s assets and information are exposed to the vendor, which is why privacy policies must be addressed before opting for one.
Security Concerns
When it comes to sharing information, companies need to understand that any breach at the vendor’s end can put the company’s information at risk.
Integration Issues
Even though cloud computing is quite favorable to the working dynamics of most companies, integrating it is another issue. The company needs to take reasonable measures in order to fully embrace and integrate cloud services within the existing infrastructure.
Cost
For most companies, cloud computing solutions may not be an optimal choice in terms of costs. The scale of the company may not require mass-scale cloud solutions. Here, traditional operational methods can provide usefulness.
Cloud Computing in SMEs – Case Studies
Zoom, widely used for its video conferencing service, uses cloud services to record content and present it to the administrator whenever required. Slack’s SaaS-based communication service is regarded as one of the best.
RunPod uses cloud-based services to provide its users with an easy development and deployment atmosphere, especially for AI-based projects. IBM’s Bare Metal uses cloud services to accommodate projects up to three terabytes with fast processing and setup.
VMWare provides disaster recovery-as-a-service (DRaaS) to ensure compelling data storage and protection. Amazon Web Services (AWS) Lamda allows companies to leverage cloud computing for running backend applications and deploy code seamlessly.
The Future of Cloud Computing for SMEs
Cloud computing holds a great future, offering easy upscaling, organizational flexibility, and data security to its users. SMEs can look into various options and choose the one that fits best their needs.
