What is Cloud Computing and How is it Beneficial for Small Businesses

Cloud computing is a buzzword in the business world, and it’s often ignored by small business owners who think it’s too expensive or too complex for what they need. In reality, the cloud offers flexibility for businesses of all sizes.

What is Cloud Computing In General?

Cloud computing is technically the delivery of computing resources over the internet. It’s dynamic so that there’s always enough for what’s needed. It’s also a flexible option since companies only pay for what they use on most platforms, making it a helpful for businesses to stay on budget but also provide them with the flexibility to scale quickly.

Some Uses of Cloud Computing for Small Businesses

Cloud computing has many uses, and it’s a cost-effective way to avoid sudden computer infrastructure costs. In addition, there are many other benefits, like compatibility and scalability, that make cloud computing a good match in many small business situations.

Applications (SaaS)

SaaS stands for software as a service, and many small businesses use them without realizing it’s cloud computing. A typical example of SaaS is bookkeeping/invoicing platforms or Microsoft 365. Subscriptions to these platforms cover a small amount of cloud storage for the financial data and access to the analysis software through a web browser.

Small businesses can use cloud computing to rapidly launch SaaS products and deliver reliable uptime on a application throughout its lifetime. This model also allows the company time to build its own infrastructure if desired while still generating profits.

Cloud Storage

Cloud storage is what many people think of when they imagine the cloud. Small businesses can use the cloud as part of their data protection plans, mainly since the cloud is offsite and accessible anywhere. Cloud storage is also flexible, so the monthly fee reflects the amount used.

Using cloud storage is straightforward through a service, but less so if a small business tries to set it up independently.  There are a host of different providers out there, but it’s important to understand things like where your data is stored, and what types of data retention these providers guarantee for their clients.

Cloud Hosting

Cloud hosting and SaaS may look similar, but they’re two different things. Cloud hosting is a mainstream practice that most people use in one form or another. For example, organization apps are typically cloud-based, even though many can function locally without an internet connection and resync later.

Since cloud hosting is a mainstream practice, it’s something small businesses can easily use to create cloud-native applications without significant infrastructure start-up costs. That’s invaluable with the limited budgets of many small businesses.

Security

Cloud computing can also provide a secure place for both applications and data. Reliable security services from the office would mean a hired staff position or money spent on a managed IT provider contract for a small business. That’s often not in the budget.

With the cloud, customer and business data can be protected much more vigorously around the clock. Since cloud providers stake their reputations on the security of client data, they have a lot to lose if they fail to meet strict security standards.

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