Cloud computing is one of the options that a CEO of a startup or medium size company should seriously consider to keep the overall IT infrastructure under complete control. It ensures seamless scalability of the business at a minimal cost and also enables the management to focus on their core capabilities rather than on the “support” functions.
A quick overview of benefits a mid-size business can achieve from the cloud computing option
- A Healthy Cost Arbitrage- In most cases, cloud computing can result in huge savings primarily driven by the fact that there are no capital expenditures, development costs, salaries or other fixed costs in the model.
- Scalability- The option follows a plug and play model where it is possible for a startup or mid size business to expand its operations almost immediately and also cut back without obligations when the business environment is not so favorable.
- Faster Deployment- Instant deployment of various modules is possible based on the business growth without any development lead time
- IT as a Variable or Flexible Cost- Cloud computing follows a classic “pay as you go” model which means that the IT spend is merely a variable cost.
Functions or stacks that mid-size businesses should consider as first steps for cloud computing options
- Basic Functions Like Emails or Calendars
- Online Platforms For Sales Management, Payments, Inventory, Order Management etc
- Customer Relationship Management
- Data Storage and Management
- Invoicing
Look before you Leap: Checklists for optimizing the benefits from Cloud Computing
- Get the Numbers Right- Make sure that a thorough “buy versus lease” calculation is available which details not only current benefits but also projections (at least 5 years) so that an informed decision can be taken.
- Evaluate Vendors and their Services- All vendors differ in their offering on various aspects like costs, integration, layout etc. It is important to compare “apples to apples” as potentially you are choosing a business partner.
- Do Not Shy Away From Free Trials- Most vendors offer a free trial and companies should utilize these trials to make sure that they get the best option for their business.
- Be Informed of Legal Obligations- It is advisable to make sure that the cloud option does not violate any legal requirements that affect the company based on geographical location or otherwise. For example, in case of data outsourcing, is it legal to outsource maintenance of personal records of customers at a remote site based on laws that applies to the said business?
- Double Check Terms and Conditions-Read between the lines before signing the contract to ensure that all clauses evaluated during the evaluation or RFP discussions are fulfilled and there are no new clauses which changes the overall arrangement.