Why do larger companies get the benefits of new software first? When productivity-enhancing applications like CRM, sales management and even accounting software are introduced, they’re typically aimed at big organisations with big IT budgets.
These applications trickle down to smaller businesses eventually. But even then, costs are still high: the software has to be purchased, licensed, maintained and supported. Hardware often needs to be upgraded. And it all serves to distract from actually running a business.
However, Cloud applications promise to break this traditional IT model, levelling the playing field and making powerful business software available to any size of business – from a one-person start-up to an organisation with a turnover of £20 mililon or more. And I would argue that Cloud Computing is even more of a compelling proposition to SMBs than it is to enterprises.
Smaller, brighter clouds
Why is this? For exactly the same reasons that it appeals to enterprises. We all know about the minimal upfront costs of deploying Cloud apps, freeing up capital that would otherwise be swallowed up in buying hardware and software. Also the minimal maintenance and support costs, as someone else is taking care of the awkward, costly parts of business computing.
While these issues are important benefits to savvy enterprises, they’re an absolute godsend for smaller businesses with limited IT budgets. What’s more, in many cases, smaller businesses don’t have dedicated IT resources or manpower to hand to manage software – so having the management and provisioning done for them is a real boon.
This is the key issue. Cloud Computing breaks down the barriers that previously stopped companies getting access to business-boosting apps such as CRM, ERP, stock control and more. So a company doesn’t have to be a certain minimum size to benefit, nor does it need a skilled IT team. It just needs around £25 per month, per user to get started. For the first time, the big kids’ toys are available to any business, so they can get the same benefits, visibility and support that have, until now, been simply too expensive for them to afford.
The Cloud’s flexible application access also directly benefits small businesses – especially those with virtual offices. As long as they have a connection to the Internet, users can retrieve files and access or manipulate business data anywhere – whether at home, via a WiFi hotspot or 3G on a laptop.
Cloud in practice
Let’s take a look at a case study of an established small business that’s benefiting from using Cloud Computing applications. Allgas is a Yorkshire-based specialist supplier and maintainer of gas and electrical appliances and accessories. Allgas carries a large stock of appliances, accessories and spares, totalling some 30,000 items across its two sites, and is building an e-commerce site to enable customers to order parts online nationally.
In particular, stock management was becoming an issue for the growing company. The firm was looking for a cost-effective solution to provide a single, real time view of our central stock position, both internally to the business and externally to our customers through our e-commerce web site. It chose the Gooroo application, which gives access to stock information, purchases and transaction records, so stock levels can be managed efficiently. It gives a constantly updated, real-time view of the company’s current position, and can be accessed securely from any web-enabled device at any time, helping with planning and decision-making.
In conclusion, I believe that SMBs will quickly embrace Cloud Computing, because it gives them enterprise-class business software without the price-tag or support costs. It may even serve to lift them higher than enterprise users.
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