Taking computing to next level
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SMEs get attracted to cost saving methodology of cloud computing
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— FILE PHOTO
web driven: Visitors watch a presentation about cloud computing at a CeBIT IT trade show in Hanover, Germany.
With the emergence of globalisation, the world has moved rapidly from personal computers (PCs) to Internet and into mobile revolution. This has changed the context for businesses and made global markets accessible for even small and medium players. How to tap into the best of IT tools to deliver world-class product or service without spending capital in IT infrastructure and software costs? That is the big question exercising the minds of small and medium enterprises (SMEs
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New tool
Well, the answer lies in a new technology tool called “cloud computing”. In cloud computing, the user’s applications and documents are shifted from desktop into cloud, where thousands of computers and servers are linked together and accessible through the Internet. With cloud computing, everything one used to do through desktop computer will be done over the web. This technology is said to have come in as a cost saving methodology for SMEs.
Advantage
For an end-user, cloud computing means there are no hardware acquisition costs, no software licences or upgrades to manage, no new employees or consultants to hire, no facilities to lease, no capital costs of any kind and no hidden costs. Just a metered fee based on per-use rate or fixed subscription. Use only what you want, pay only for what you use, says Sun Microsystems in a recent report on “Take your business to a higher level”.
So how does an individual or a business take advantage of the cloud computing trend? Using the cloud is often the best option for start-ups, research projects, Web developers or niche players who want a simple and low-cost way to “load and go”.
Cloud service
According to Vinod Krishnan, Regional Manager of VMware India, a global company in virtualisation solutions, the cloud model allows small and medium enterprises to focus their time, energy and investment in areas which provide them direct business benefits.
By tapping into a cloud service, these emerging companies can potentially convert their prohibitive IT capital expenditure investments needed to set up IT infrastructure to a true utility-based operation expenditure model with the cloud provider.
A hosted model of cloud-based services fits the bill for SMEs, allowing them to benefit from up-to-date technologies without the large capital investment in IT Infrastructure and equipment. It is a lightweight entry and exit service acquisition model. Cloud computing delivers the latest enterprise-level IT technologies and solutions to both enterprises and smaller companies quickly and easily.
Mr. Krishnan feels that the cloud model enables these SMEs to best align the service level agreement and infrastructure to the needs of the business and the applications. This gives these companies the cost savings seen from external clouds, with the security, compatibility and control needed for the enterprise.
Studies reveal that almost 70 per cent of a customer’s IT budget goes towards maintenance and upkeep of IT systems, which provide customers no competitive advantage. Only the balance 30 per cent goes towards providing services which help the business gain advantages in the market.
Pay-as-you-go model
The pay-as-you-go model behind cloud computing and Software as a Service (SaaS) allow smaller companies to increase (or reduce) their IT investment in systems as they grow. In the current economic development, SMEs will be attracted towards cloud computing, SaaS and virtualisation. These models can help smaller businesses to deliver new products and services quicker and at a lower cost, says S. Madhavan, Founder of GQuotient, a Chennai-based IT company specialising in Green IT .
A common perception is that only big players can afford the state-of-the-art IT infrastructure.
Cloud computing disproves this paradigm and makes services available to all, irrespective of size. While big businesses are leading the way in the use of cloud and SaaS tools, experts argue that the benefits are probably biggest for small and medium-sized companies.
SHANTHI KANNAN
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