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Deploying Cloud Solutions for SMBs: Benefits and Challenges

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Mastufa
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Any incomplete without touching upon the growth of cloud-based computing, especially in the small and medium sized business (SMB) sector. Dubbed Software-as-a-Service (SaaS), the popularity of the cloud-based business applications is due to an increasing demand for flexibility and predictable costs. Recently, Forrester forecasted that by 2014, the SaaS market is expected to grow to $75 billion.

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A quick look at the trends show us what makes Cloud so attractive for SMBs:

1) Lower costs and no more installation hardship

Expense reduction is a core benefit of cloud-based business applications. SMBs usually do not have the luxury of a large technology budget that would allow for extensive resources specialization, and rarely do they have a budget for a robust IT staff. Traditional on-premise software applications carry with them installation requirements, an initial license fee, recurring fees for support and maintenance, and potential disruptions associated with upgrading software to newer versions.

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In contrast, Cloud customers usually pay a monthly fee to license business apps which are hosted on the app provider's server and accessed via the web. Zero up-front IT infrastructure or technology investments and the recurring costs are predictable. Cloud provides the potential to drive down the total cost of (software) ownership (TCO) and eliminates the capital expenditures in this area.2) Flexibility and easy deployment

An on-premise implementation can be a costly and timeconsuming proposition. In addition to the investment in technology infrastructure to run the application, you must devote resources to install and customize the application. Consulting fees can further inflate costs. Most SaaS instances can be provisioned in minutes and quickly configured with branding, process flows, additional fields, reports and other settings. A highly configurable product offers a great deal of flexibility without the time and expense of software redesign and coding. SaaS apps require no additional server or hardware investments, they are very scalable, and they do not require specialized IT staff.

 
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3) Ease of management and standardized solutions

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The absence of software installation or infrastructure requirements results in a lesser burden on a SMB's and their personnel. Employees do not have to worry about updating to newer versions of the software or backups. The app providers manage this part of the equation on their servers. Cloud-based apps are always up-to-date, so both new and existing employees will have the same version of the application.

4) Less IT resources needed

Emerging businesses usually operate with rather lean IT resources. Cloud-based business applications mitigate this personnel issue to a very large extent. As SMBs constantly look for ways to operationalize their approach and reduce unnecessary spending, SaaS apps present an attractive model for infrastructure and software delivery.

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5) Comprehensive support

SaaS vendors provide tiered pricing for different levels of support and service agreements. This way, you can choose the best package, without paying for more or receiving less than you need. Unlike a traditional software license, the SaaS model includes comprehensive support in the subscription fee. This also includes product maintenance and upgrades, so there are no hidden costs or additional fees, nor do you have to worry about hardware maintenance or failures.

6) High security

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For cloud-based services, network availability is critical. Additionally network security and reliability are among the biggest concerns for businesses thinking about adopting cloud services. When important data is moved offsite to a service provider, you need assurance that the system is secure. SaaS vendors house their applications in world-class data centers, with state-of-the-art power, ventilation and security features. They also employ encryption and the latest in security protocols to ensure the safety and integrity of your data.

 











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Conclusion

Cloud enables SMBs focus more on running their businesses and less on managing their technology. Cloud computing eliminates the need for individual companies to buy, deploy and maintain IT. The adoption of cloud computing has brought renewed focus to the software as a service (SaaS) application delivery model. Some small and medium businesses (SMBs) see SaaS as an equalizer that gives them the same application functionality as larger competitors, without incurring the massive investments in technology and resources. The SaaS app market is poised for explosive growth and the core impetus behind this surge is the SMB sector.

Many large MNC IT companies already have complete ERP suite offering, targeting the SME Business. There are several solutions in today's market which are ideally suited for SMEs and subsidiaries of large corporations. Our BusinessByDesign, for instance is a complete, integrated suite that can run your whole enterprise - financials, human resources, sales, procurement, customer service, and supply chain. These solutions enable an increase in efficiency across your organization by enabling end-to-end processes, gaining of timely insights through integrated analytics and reporting, and access business functionality and analytics anytime, anywhere with a broad range of mobile devices with highly secure data centers that are managed, monitored, and maintained by experts.

You'll likely find that SaaS has a lot of upsides and very few downsides. For the small business that wants to grow and stay competitive, SaaS is a smart investment.

 

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