You've certainly heard about cloud computing. You might be even using it without really knowing it! Cloud computing services have deservedly gotten a lot of attention recently as the technology continues to develop. Well, that's great, but what does it mean for your small business? In this article, we will discuss what exactly cloud computing is, provide some examples of the various implementations of cloud computing services, and go over what it means for the future of small business. So, let's find out.
Cloud Computing Services Defined
What defines a cloud computing service? There are many definitions of cloud computing. The National Institute of Standards and Technology's definition: "The delivery of computing as a service rather than a product." The European Union's definition: "A set of computing resources and services that can be delivered as a virtual service on demand." Finally, IT Business Edge's definition: "Cloud computing is a way to use the Internet and third-party computers to store, manage, and process your data and programs."
Most people think about cloud computing in terms of a computing model, where all the infrastructure needed to run a business is a service delivered over the Internet. This can include things like servers, storage and bandwidth. Instead of having to buy and set up the servers, storage and bandwidth, small businesses can use a provider such as Microsoft Azure to deliver these services. Thanks to the proliferation of high-speed internet, it's now feasible to access powerful workstations and software in the cloud environment from anywhere in the world.
You can compare this to a small business wanting to open a retail shop in a mall. They don't have to build the store building or develop their own customer relations management software or accounting tools. They can simply rent the store space and buy the products from vendors, and suddenly they're in business. In the same way, small businesses can use cloud computing to rent infrastructure instead of outright buying it. In this case, the data center and cloud servers are the mall.
Infrastructure as a Service (IaaS)
Infrastructure as a Service describes a solution where the hardware, operating systems, software and network infrastructure and hardware are provided by a cloud provider. If you have ever used a service like Amazon Web Services or Rackspace, you have used IaaS.
The phrase 'as a service' is a business model that focuses on cloud providers delivering large, powerful solutions for a monthly service fee rather than as a single, one-time large purchase. For example, cloud providers such as Office 365 and Adobe Creative Cloud offer services billed monthly which were previously only available by purchasing large, expensive software suites. A subscription to Adobe Creative Cloud service grants the user access to many thousands of pounds worth of software, such as After Effects, Acrobat Pro, and so on, all for a much smaller monthly fee for access (more on this later).
Similarly, IaaS is a philosophy where users can pay a regular access fee for access to powerful virtual hardware, all immediately configured with a working operating system. IaaS is why small businesses can use cloud technology in order to reduce capital expenditure expenses. For example, let's say your business needs to hire 5 graphics designers for a short-term project. Using conventional hardware, you would need to purchase 5 high-end PCs for the team, in addition to hiring the team in the first place. Once the work is done, you'll have the hardware and all the software licenses left over - what will you do with it all?
This won't be the case with with cloud deployment. Instead, with IaaS, you can build and configure virtual machines to any specifications you need, and connect to them via remote terminals or via remote desktop software. Instead of making a large up-front purchase of expensive hardware and software, you'll only pay the cloud service provider for the amount of computing time your business uses, usually on a monthly agreement. Furthermore, if you discover that your applications need extra memory or data storage, or less for that matter, you can upgrade those specifications on the fly - all for a slight adjustment in your monthly price! Furthermore, anytime your business needs change, you can simply decommission the virtual machines or add new ones. Finally, for utility computing projects that require an extraordinary amount of computing power for a short period of time, such as high-quality video rendering or machine learning, cloud infrastructure can rapidly provide the computing power necessary to handle these jobs. Cloud deployment is the future!
Platform as a Service (PaaS)
Cloud providers such as Amazon Web Services and Microsoft Azure are good examples of a Platform as a Service implementation that provide a powerful platform for your business to implement IaaS through. The platform enables you to easily spin up a virtual machine, manage billing and perform other management tasks without really having to know anything about cloud computing in general. You can add or remove network storage, relevant application software, and virtual servers easily. Cloud vendors don't believe you should need to know the nuts and bolts of cloud infrastructure as a service in order to benefit from it - and thankfully, they're right!
Software as a Service (SaaS)
Software as a Service can be described as a software solution provided by a cloud service over the Internet. While many cloud services are simple tools like CRM tools, task management tools, many other cloud services are full-blown platforms like Microsoft Office 365 and Google Drive. By deploying these applications as a cloud service solution, users benefit in several ways. For example, a user who needs to perform a little work in a particular application doesn't have to install a full-blown desktop app in order to, say, edit a PDF file or a Powerpoint presentation. Patch management and updates are handled by the cloud vendor rather than the user themselves - after all, if you're using the web version, you're always using the most modern version of the software.
Documents also have a convenient and secure cloud storage location, so your team won't go scrambling for the document you were working on at 11pm last night when they need to review it in the morning - it's in the cloud! You'll also be able to implement collaborative working strategies, such as multiple people being able to work on a single document at one time.
The Bottom Line
As a small business owner, the most important thing you should understand about cloud services is how it can improve your bottom line. Your business could save a lot of money by reducing capital expenditure and moving to cloud-based solutions. You will also save money by eliminating the need to purchase conventional hardware or software licenses.
Furthermore, businesses that process a lot of data will save on the cost of server space. This can mean that you can move your business to new markets without having the capital expense of a new data center. If a user needs more computing power, they can simply upgrade the specs they have on their virtual machine.
Benefits For IT Teams
Having a reliable and scalable system can save small businesses a lot of money, as it means less maintenance is needed. It also means businesses don't have to worry about having the latest and greatest hardware for their systems - they can save time and effort by not having to physically keep up with the latest technologies and new releases. New virtual machines will be deployed with the most recent updates to operating systems and development tools.
Cloud computing also makes it easier to implement a Disaster Recovery Plan, as it inherently involves having your data automatically backed up and stored in a remote location. In case of a disaster like a fire, flood or a cyberattack, this could save you and your business a lot of grief and headaches.
Benefits For The Environment
Did you know that large data center based solutions are more energy efficient in the aggregate than the equivalent amount of desktop hardware or physical servers? A cloud provider hosts its equipment and powers its servers in large data centers, which are geolocated in areas with cheap, available energy that often draw from renewable sources. For instance, data centers in Quincy, Washington in the United States are majority powered by hydroelectric energy from the nearby Columbia River. Furthermore, cloud computing means less individual hardware is needed. Your small business won't have all this extra computer hardware laying around and going to waste afterward when a project wraps up. For energy-conscious teams, whether the concern is environmental or just about simple cost savings, utilizing cloud resources is considerably more efficient than deploying hardware in the traditional way.
Benefits For Businesses
Cash is always an important matter for small businesses, so having scalable and reliable infrastructure can mean the difference between surviving and thriving as an ongoing enterprise. Businesses can grow quickly and easily without the worry of dealing with hardware and infrastructure that is over capacity without having to invest in their own hardware and software.
By not having to worry about capital investment on physical hardware, you can better spend your time growing your business and make sure that you are maximizing your return on investment. Whether you are a small business or a big enterprise, cloud computing can provide your business with the scalability and flexibility it needs to stay competitive in this ever-changing market. Cloud application platforms also allow users to access their full business applications from anywhere. This means they do not have to rely on their own hardware to access their data, so users don't have to worry about leaving an important document on their workstation desktop.
One Thing Small Businesses Should Remember About Cloud Computing Services
While there are many advantages to using cloud software and implementations for small businesses, business owners should remember that cloud computing is still a developing technology and businesses should keep this in mind.
While the cloud can be a great way to manage data that is shared and need to be accessed from anywhere, poorly managed cloud implementation can be a security risk. Using secure authentication is very important to maintaining cloud security. Many small businesses that use cloud computing often use third party security keys like Two-Factor Authentication in order to mitigate these factors Many small business owners are right to raise security concerns, and implementing security measures such as Two-Factor Authentication are in place to help safeguard important documents. Make sure users gain access properly - and securely!
Also, small businesses should be particularly aware of legal risks and compliance regarding storing data. Particularly sensitive data storage must comply with local legal regulations regarding data security and users access. Very secure data should not be accessible via mobile devices, and data backup must be conducted in a secure manner. In order to take advantage of the benefits of these business processes being able to function as a service on cloud platforms, you'll need to be aware of how to securely manage them!
The Future Of Cloud Computing Services
Cloud computing is not just a throwaway technical trend. Rather, it is a revolution on many fronts. In the next few years, we should see a huge transformation in the way businesses use cloud computing services as they grow more comfortable with delegating operations to these cloud services. Cloud computing can save small businesses a lot of money. Less maintenance is needed to provide a scalable and reliable system that allows businesses to grow quickly and easily without having to invest in their own hardware and software.
As cloud computing becomes more and more secure and powerful, expect to see more and more businesses using cloud systems, especially as it becomes more cost effective. Cloud computing work and cloud services, including cloud storage and cloud infrastructure, will become a very important aspect of development planning for small businesses going forward. The cloud computing revolution is just getting started, so expect to see a lot more from it in the next few years!
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