Cloud computing offers significant benefits to small and medium-sized businesses by providing access to robust IT infrastructure in a cost-effective manner through third-party managed services. A study found that 64% of small businesses in Europe utilize cloud-based solutions, and cloud computing is expected to generate 14 million new jobs worldwide by 2015. For small businesses with tight budgets, cloud computing saves on costs by eliminating the need for expensive in-house IT hardware and staff, allowing them to instead focus resources on core business functions. While outages and security issues are risks to consider, a well-planned cloud adoption strategy can improve business efficiency and facilitate growth when paired with reliable internet access.

1. Cloud Computing - Enabling and Empowering Smaller Businesses
Cloud computing is proving to be constructive and cost-effective for small and medium enterprises
looking to streamline operations and move ahead, budgetary constraints notwithstanding. Earlier this
year, IDC reported that 64% of small and medium businesses in Europe utilize one or more on-demand
solutions to perform front or back-office operations. According to another Microsoft-commissioned IDC
study, public and private cloud services, with their potential to transform the way businesses operate,
are expected to generate around 14 million new jobs across the world over the period 2011 – 2015.
John Gantz, senior vice president IDC estimates that approximately half of these 14 million jobs will be
created in the SME segment.
Recent Microsoft surveys indicate that cloud computing could actually be aiding growth in Europe’s SME
segment despite the economic gloom pervading the region. According to Microsoft, roughly 25% of
SMBs across Europe had plans to enlist new recruits in 2012 while elsewhere in the world the business
outlook for this segment was even more encouraging. Microsoft also found that a sizable percentage of
SMBs had plans to invest in technology upgrades.
Fundamentally, cloud computing offers individuals and businesses of all sizes the facility of a third-party
managed IT environment, which stores and processes data as and when required. Imagine having access
to an IT resource that can fulfill a range of data management needs without having to set up and
maintain computing infrastructure. Gaining access to high-end hardware and software, which many
SMBs lack resources to implement and manage, makes it possible for them to improve disaster
management capabilities as well as operating efficiencies and subsequently enhance productivity.
At a time when adaptability is key to surviving and thriving in an increasingly competitive and rapidly
changing business environment, cloud computing offers businesses an advanced, dynamic and
adaptable IT environment as opposed to the inflexibility and lack of scalability inherent in in-house
hardware and software installations.
For small and medium businesses, utilizing on-demand solutions or Software as a Service (SaaS), as it is
known in the business world, is usually quicker, easier and more economical than maintaining a
dedicated IT department, which involves investing in servers and software as well as employing full-
time IT professionals.
As most SMBs operate on tight budgets, and in the current economic climate the emphasis on cost-
cutting is even greater, deploying cloud-based services is the smart thing to do. It saves time and money,
which companies can divert to core business functions such as product development and marketing,
enabling growth with relatively low investment. According to IDC, the majority of SMBs that adopt
cloud-based services realize significant cost savings, often as encouraging as 10% to 20%.
An increasing number of SMBs are streamlining operations and marketing by moving accounting,
customer relationship, HR and sales processing functions to the cloud. More and more companies are
investing in cloud-based collaboration services, which enable employees to share and process data
among themselves and also with business partners. Employees on the move and at different locations

2. can access, process and share information from their mobile, notebook or other device quickly and
smoothly.
However, few solutions are perfect and this applies to on-demand services as well, which have failed on
occasion. Outages and security lapses have occurred, disrupting work and causing significant loss in
some instances. If you can’t afford to lose your data, keep at least one backup offsite. An enterprise’s
success with cloud computing also depends on the quality of connectivity. It is imperative for a business
using cloud services to have a reliable, high-speed broadband connection.
While cloud computing is not a sure route to profitability and growth, a well-thought out cloud
adoption strategy suited to an enterprise’s needs, budget and growth plans, with provisions for outages,
can significantly improve business efficiency, save on costs, catalyze innovation and facilitate growth.
-ENDS
Copyright © Reena Ghosh, December 2012
This article is not to be published, copied, circulated, printed, sold or used in any way without my
permission. I own copyright. – Reena Ghosh