Techblog
Startups find strong business value in the Cloud
The cloud levels the playing field for startups, offering cost-effectiveness and the agility to compete globally and against larger enterprises.
By the myBusiness techblog team
Cloud computing is perfect for startups - who typically face the challenges of tight budgets and the need fr agility.
Cloud computing can be described as a complex web architecture comprising software, hardware, and storage, that is available as a service. It is a form of utility computing, where computing resources are available like public utilities, like water and electricity.
This allows users to work and save information online, and all the applications reside online, instead of being installed on your computers. Startups can enjoy the advantage of doing away with things like operating systems, hard disks, and licensed software, as applications and data are accessed via a standard browser on a computing device.
For startups, cloud computing spells reduced capital expenditure (capex), where there is no need to invest tens of thousands of dollars for infrastructure like computing servers and software, or to pay for the IT skills to develop and manage the IT infrastructure. The cloud offers the ability to scale globally, with significantly reduced operating costs. For instance, instead of deploying IT infrastructure - whether data centres, software licenses, or servers - it can be made available online, as a service through service providers. Another advantage is that this can be implemented in days, vs months. This affords startups the agility to compete on a global scale, and against the larger enterprises, from the outset.
The ability to scale up or down based on business need means that startups are allowed the room to focus on their core competencies instead of managing IT equipment, and hence be more agile and innovative.
There are many advantages to cloud computing for startups. An example is Google Apps, and Singtel ONEOffice, a suite of web-based office solutions that offers more productivity and collaboration for companies. It comprises of email, calendar, documents, sites, eSMS and eFax services, and can help cut business costs by up to 91%. For startups, the following areas are of particular advantage:
1. Email. Cloud applications offer staff the ability to communicate easily via an Internet connection wherever they are in the world - through email, instant messaging or video conferencing. Email hosted on service provider servers means significant savings in storage space and technical expertise required to host your own email servers. For example, the Singtel ONEOffice saves all your corporate information with improved mailing list capabilities, and each user gets a 25GB mailbox - 50 times than industry standard. In contrast, corporate hosted mail server will have far smaller mail boxes.
2. Telephony & Communications. Even telephone calls can be done in the cloud, with dramatically reduced telephony costs. Solutions like i-PhoneNet can turn smartphones into IP PBX systems. It allows businesses to enjoy advanced IP PBX-type features without the need to purchase and maintain a premise-based phone system as it is outsourced to the cloud provider's team of experts.
A mobile phone app for the smartphone can allow staff to carry the office i-PhoneNet number on the go, providing the flexibility of taking and making business calls anytime, anywhere with 1 single number. This offers a professional image as customers can call a single number. When the device is connected to Wi-Fi, outgoing calls from overseas will be charged at local fixed rates and calling back to any office numbers will be totally free, which means savings of up to 90% on roaming bills.
3. Collaboration. Cloud computing makes collaboration easy, where cloud apps allow employees to use an online word processor to create, share and collaborate on documents such as proposals or sales documents. Other collaborative cloud apps allow ideas to be shared, discussed online, without having to meet face-to-face. This means multiple people in different offices can view and work on the same document, enhancing efficiencies
4. Business Applications. Buying software licenses can be costly, and ensuring the right number of licenses for employees in a dynamic business environment can be a challenge. The traditional approach would mean having to purchase a software license, download the software onto the computer, and you own the software. The cloud offers an answer with Software-as-a-Service (SaaS), where users can access business applications without having to worry about licenses, and many of these applications are available free online.
Some useful applications include office productivity suites, and cloud-based Customer Relationship Management (CRM) software that can help startups manage their relationship with customers and prospects, where the whole database of customer data can be easily shared between staff.
Other useful applications include web hosting and web design applications that can be used to build an online shopfront, etc., and inventory management solutions. Cloud-based accounting software automates accounting processes, to allow for easy tracking of the status of customer and supplier invoices and streamlines data entry transactions. Localised accounting software versions will have local tax information built in.
5. Storage services. This allows the storage of any volume of data. The traditional data storage process can be a costly and time-consuming endeavour, having to maintain storage disks, tape, firewalls, and a disaster recovery plan. Cloud storage can ease this burden of managing physical storage hardware and software. With the storage in the cloud, it allows you to store, retrieve, analyse and back up your data without having to be concerned about maintenance or scaling up or down. Cloud storage comprises networked and virtualised pools of storage that is hosted by a third party, such as service providers or hosting companies who operate large data centres.
6. File Sharing. This is a very useful cloud storage feature, where users can share files, photo albums, or a collection of work documents online. It can be easily done with a few clicks, where a folder containing the files is placed in chosen service provider's cloud server, and co-workers and anyone can access, edit and share anything with you in that folder.
An agile, more efficient, and better-run business means a competitive edge. Cloud computing has the ability to provide startups with a competitive advantage in a significant a way, just as the Internet did not so long ago.