Keeping information and applications in the cloud has become a wide-spread practice for many small businesses. The primary factor for migrating to cloud computing is costs. Many business owners know they can save money both in the short and long term when utilizing cloud based services.
It’s important to know the advantages that create the costs savings. Our list below describes some of the advantages companies gain from cloud based services.
1. Infrastructure
For some business owners, they have an attachment and possibly expertise with computing technology. They purchase the right equipment for all aspects of their business and network each piece. However, their knowledge in hardware and software may negatively affect operating costs.
On premise computing requires a physical investment in space and infrastructure. Housing several server racks takes a special room with temperature controls, and access to power and LAN lines. The cost of the physical space can bite into profits, especially with rising costs in rent. Combine these costs with the purchase of the technology and you stand to lose almost 7% of your revenue, which is an even bigger hit to your profits.
2. Upgrades, Maintenance, and Employees
Business critical applications and hardware need regular upgrades. Upgrades coincide with maintenance of machines that can bring entire areas of your business to a halt. This is particularly true for network servers. These machines require specialized, technician knowledge of routine refresh cycles in order to preserve optimal working capacity. When the server goes down, or isn’t working right, your business can be affected for hours, even days. Costs for repairs are expensive. These machines also require software upgrades that take the system offline for an extended period of time.
Having IT infrastructure requires management of the hardware and software. This may require hiring one or more employees, which means the added costs affect your bottom-line. Companies offering cloud services handle all of the upgrades and maintenance, so you and your employees can focus on your business goals.
3. Accessibility, Flexibility, and Efficiency
Cloud computing offers reach and 24/7 accessibility, making your employees more productive. A small retailer can have a national presence, and do business from multiple areas spread throughout a region.
Cloud based point of sale systems allow your business to be flexible through agile and speedy transitions. Legacy systems can be integrated within a very short period of time. Or, some cloud based systems may provide a new way of performing tasks that make your team more productive.
4. Agility for Growth
More efficient systems and less operational issues allow employees to spend more time on useful business activities. Your employees are your biggest asset. This leads to growth in revenue and more product or services that you can offer, giving your company a competitive edge. With an agile system, your business can follow strategic plans for growth, expansion into new markets, and the opening of new store fronts.
A cloud based system can quickly compensate for changes in market conditions. Being nimble is important when economic changes can occur within a very short period of time (the stock market fell apart in 3 months before the great recession). An inflexible system may require expensive hardware and software upgrades, or entirely new equipment. An inflexible system during hard times could be disastrous for your company.
5. The Customer Experience
Security and performance are instrumental in providing a positive customer experience. Cloud based systems boast the latest in security software. This provides your customers with piece of mind that their important personal information is safe.
Competition between companies offering services is a huge win for customers. The latest software and tools are being used for small businesses to act like box stores, preventing lost sales due to slow service and long lines.
Embracing the changes in computing from on-premise to cloud based systems can make your small business profitable and ready to grow when it needs to. Your employees are able to focus on their jobs and customers realize the quality of service.