A recent study about the Cloud by Zoomerang found that 72% of SMB’s were either “not familiar” or “not sure what it is” when asked about cloud computing technology. Executives tend to leave all technical initiatives and recommendations to the IT staff but it really should be more of a priority for top management. Because top management doesn’t always understand technology they often approve the IT recommendations without much consideration. Many experts believe that Cloud technology will transform the way technology is delivered and consumed which means management at SMB’s need to understand the importance it can have to their business.
Cloud computing should be perceived as something more than a way to make minor changes to a company’s infrastructure. SMB’s should consider how the Cloud can reinvent their business strategy and help lower the cost of doing business. One company featured in the Tampa Bay Business Journal stated, the best cost-cutting idea of 2011 for their business was deciding to virtualize their servers. The change resulted in a 66% reduction in power consumption in the data center and a savings of $8000 per year of ownership on the physical servers on maintenance and warranties.
Enterprise level companies like Netflix and Xerox have recently made major changes to their business to utilize the Cloud. Netflix moved its video streaming out of their own data centers and into the Amazon public cloud; and Xerox introduced Xerox Cloud Print that allows users to print to a nearby printer wherever you are. If large companies are able to make major changes into the Cloud to enhance their business models, SMB’s should be able to make the adjustments to their business as well.
Most business managers look at cloud computing as an extension of traditional IT services but they need to understand there is a much bigger opportunity for business model innovation. Cloud computing can lower costs, eliminate the need to install, upgrade, manage and troubleshoot software and reduces reliance on in-house experts.
Download our webinar, “Blue Skies, Green Clouds: The Hottest Ways to Squeeze Value from the Cloud” to learn more about Cloud technologies or Contact Us if you are interested in having a member of the Launch Pad team visit your business to discuss how the Cloud can benefit you and conduct a RevITup Silver Cloud Technology Assessment.
