Does cloud computing make sense for a small business?
Are you a Small Business owner trying to decide between operating your business systems in the Cloud or investing in an on-premise server? The differences in costs, accessibility and security can make this decision feel stressful when all you want to know is which one suits your business better.
Well, worry no more as you can see the key differences outlined here so you can make an informed decision over which is right for your business.
How does Cloud computing work?
Cloud computing software is hosted on the vendor’s servers – that is, on the internet. This means you can access the data you need via any computer, from anywhere.
If you go for the Cloud option, your company’s business systems will be kept secure and offsite. The data in the Cloud gets updated automatically so long as you’re connected to the internet. All the maintenance work is done by the Cloud provider.
Cloud software ensures your business systems are interconnected and functioning as a whole. This is vital as one of its key features is providing real-time access to a variety of devices regardless of their location.
Examples of Microsoft’s cloud-based software
Microsoft 365 – the new name for Office (email, word processing, spreadsheets and presentations)
Dynamics 365 – Microsoft’s business systems (sales, marketing, finance, field service and more)
How do On-Premise Servers work?
On the other hand, on-premise servers store your business data and systems locally, in your office, or possibly in an off-site data centre. If you consider the work you do on the cloud as external – implementation, running the system, maintenance work – then with these servers it’s all internal, everything needs doing in-house. But, with no third-party involved, you take complete ownership of your business systems, allowing you to customise them in whichever way you see fit.
Moving your business to the cloud can be a great way to increase efficiency and productivity. However, there are also some downsides to consider. In this post, we’ll take a look at some of the pros and cons of moving your business to the cloud.
Why cloud computing is good for business
Why are businesses moving to the cloud?
- No maintenance costs. The cloud servers automatically upgrade themselves. You don’t need to do repair work and worry about compatibility.
- Increased efficiency and productivity by up to 40% after switching to the cloud
- Access from anywhere, anytime. Business systems can be accessed from anywhere via any device or a web browser.
- High levels of security. As cloud services are aware that business owners are putting their trust in the server’s system, they invest heavily in keeping it secure, investing in industry-leading security measures that are beyond the affordability of most businesses.
- Scalability. Cloud technologies can be scaled up as your business requires it. So, if you’re a small company you don’t need to worry about installing new software should your business start to grow.
- Lower energy costs. Once you’ve moved to the cloud you’ll no longer need to power the environment that would be required for an in house server – such as electricity costs.
- SAAS (Software as a service) licensing. With this payment system you only pay for the services your business needs, on a pay-as-you-go basis.
- Easy to collaborate with third parties
Is it best to keep your business computing in house?
- Complete control. As you own the hardware and software, any upgrades or configurations are your choice.
- Minimises the issues surrounding external factors. You won’t be reliant on an internet connection to keep your business systems in check.
- Fewer recurring payments. You pay for the software you need in one up-front payment. You don’t need to pay a monthly fee.
Disadvantages of cloud computing for small business
- Internet dependence. Cloud software relies on an internet connection to keep your business systems productive.
- Loss of control. Despite the high levels of security, you may still feel unsure about leaving your data in the hands of a third party.
- On-going costs. While the initial set-up costs may be low you may feel that your business could do without the additional monthly cost.
Disadvantages of on premises computing for small business
- Responsibility for maintenance: You’ll oversee ensuring your business systems stay up and running. Should you run into problems it is your responsibility to fix them.
- Maintenance costs. If something does go wrong, you may need to cover the IT support required to fix it. Also keep in mind the costs of running a land server – not only does it take up power but space too.
- Longer implementation times. The time needed to carry out installations on the local servers as well as each individual laptop/computer can slow down your productivity.
So… is cloud good for business?
Moving your business to the cloud can be a great way to increase efficiency and productivity while saving money. However, it’s important to consider both the pros and cons before making a decision. By weighing the benefits against the drawbacks, you can make an informed decision that’s right for your business.
With the cloud, you may have concerns about putting trust in a third-party to keep your business running smoothly and securely. It’s understandable. But with adoption rates for UK businesses reaching 88% in 2018 it may be time to make the change.