Why Are Small Businesses Embracing Cloud Computing?

In 2015 the percentage of small businesses in the United States, Canada, the U.K., and Australia  that ran their operations in the cloud was 37 percentage. Only a year later an Intuit study reveals that the number has grown significantly - to 64 percent. In addition, 68 percent of these same small businesses use mobile or web-based apps in their day-to-day operations. A few years ago in 2014, Intuit predicted that by 2020, 80 percent of small businesses will have embraced cloud computing. This is an amazing shift in the way small business is being done, and it’s occurring practically overnight.

Of course, what small business owners are concerned about now is what they’ve always been concerned about: controlling costs and increasing productivity. So why are they embracing cloud computing and apps?

Cloud computing fully utilizes hardware, and businesses can therefore do more with less of it. This means that companies have pay less money to buy, install, maintain, upgrade, and fix their on-site computers and servers. They also will have lower electric bills because they will not have to power all of the equipment they had to before cloud computing. For a small business like a family dentist, eliminating the headache of any unnecessary on-site IT - while simultaneously backing up records off-site - is worth it.

Collaboration is also much easier in the cloud. Take Google docs, for instance. Any number of employees can easily access and edit a single document without having to purchase compatible software or hardware. They can also access them wherever they are - as long as they have access to a computer or device and wifi. Easy, universal access to documents allows small businesses more flexibility. It’s possible to run a small business without renting physical space now since employees can and do work from home or wherever they are comfortable and productive. That can mean enormous cost savings and completely eliminated barriers to entry.

What are some reasons that some small business owners are avoiding employing apps? There are a number. First of all, there are so many apps available, that many people feel unsure of which ones work well and best meet their needs. Secondly, there’s the cost. In the previous small-business model,  software was an upfront cost. After the company purchased it, it could be used as much as and for as long as desired. Adopting cloud computing and apps means having to pay multiple monthly or otherwise regular fees that may go up over time. Also, once businesses make the switch to a specific service, they may feel like important aspects of their operations are held hostage to outside services over which they have neither control nor input.

Finally, companies want the apps they use to be simple and easy to use. The business landscape is still made up of at least three generations of people. Those people are not equally comfortable with computers, mobile devices, or apps.

Still, most business owners must feel the advantages far outweigh the disadvantages because the speed with which this change is happening is startling. When most of business is cloud dependent, this may have additional ramifications for how and where business is done.

When Purchasing Software, Consider What Support Is Included

In this economy, businesses are frequently on tight budgets, and purchasing the right software can be an enormous help for the small business owner. There are so many different programs to help with accounting, customer relationship management, e-commerce, marketing, project management, social networking, and many other essential tasks. Finding a user-friendly program can save you the expense of hiring expensive outside consultants or part-time personnel and can streamline operations considerable. But the wrong software often comes with headaches and hidden expenses that can break the bank.

Nearly everyone has experienced the frustrations of a program that doesn't work the way it's supposed to. Some of this may be user error, but what if the software you purchased is difficult to install, doesn't work well with your operating system, crashes frequently, doesn't sync with other software it's supposed to rely upon, fails to back up or accurately produce data, or any other variant of "doesn't work"? While an owner may be able to get a refund for the software itself, can he afford to recoup what using the software cost his business?

These types of problems are why it is so important for business owners to know what they are purchasing before the purchase, either by consulting with other users or thoroughly reading reviews, or relying on a reputable VAR (Value Added Reseller) for their software needs. Much has been made of saving money by "eliminating the middle man," but when dealing with software, the middle man may not be so expendable. It's true, many types of software are designed for easy installation and use. There is no point to go through a software vendor to purchase Microsoft Office or install SugarSync on a laptop, but if your business needs complex engineering software to run simulations or your medical practice requires HIPAA-compliant management software for billing, scheduling, and record keeping, a wrong choice can be a very wrong choice.  The more complex and expensive the software, the more valuable the middle man becomes to you. After all, it's he who will be able to help you install it, answer questions about what it can do, debug your model, and help you navigate customer service of the software designer. Most critically, he will be able to advise you on which software (and how much of it) best meets your business's needs.

Be careful when selecting a VAR as well. There are plenty of companies who will be glad to sell you software at marked up prices. Ask questions about what each VAR is prepared to do for you and how quickly they are prepared to do it in case of emergency. This is your backup - make sure it's a dependable one.

While it would be nice to believe that software (and hardware) will be worth its expense and that it will work and continue to work for you over time, the truth is computers are complex, ever-changing, and prone to error. Given this, it's always best to go over your options carefully before you purchase and to find reliable consultants to help with your selection.