Broadband internet access and the ubiquity of mobile devices makes cloud computing a viable option for small businesses everywhere.
Cloud computing is a more modern approach to handling long-running business needs.
Broadband internet and smart mobile technology have made cloud computing possible.
There are numerous ways that cloud computing benefits small businesses. It stores and backs up company data, it runs software applications, and it streamlines how information is shared.
What is cloud computing?
In today’s ever-changing business climate, small business owners must get what they need right when they need it, whether they’re on their computers, tablets, or mobile phones – or in the office, out in the field, or on the road. Cloud computing gives users access to data wherever they have an internet connection.
Key takeaway: Cloud computing is a digital service that allows users to access important programs and data stored on a remote server anywhere they have an internet connection.
What is cloud computing used for?
Cloud computing is an umbrella term for different types of cloud services, including:
- Cloud storage: These services store and back up your files for regular access. Files can also be shared and synced across devices.
- Cloud backup: While cloud storage and cloud backup may seem synonymous, cloud backup is designed to serve as a failsafe solution if your company experiences a server crash, cyberattack or other data loss. [See our guide on the best cloud storage or backup service for small businesses.]
- Software as a service (SaaS): SaaS solutions use the web to provide a service. Examples of SaaS application include Office 365, Google Apps, QuickBooks Online and Salesforce. SaaS solutions may also be called platform as a service.
- Cloud hosting: These solutions facilitate multiple types of information sharing, such as email services, application hosting, web-based phone systems and data storage.
Key takeaway: A cloud solution can handle numerous business-related tasks, including web hosting and file storage.
What are the benefits of cloud computing?
Cloud computing saves businesses time and money by boosting productivity, improving collaboration, and promoting innovation. Here are five additional benefits small and midsize businesses can realize from cloud computing solutions:
Extremely accessible data
Businesses use cloud computing to access information anywhere with any compatible device. Rather than storing information on your computer or a server in your office, cloud computing stores data on the internet. Information is available from a central web-based hub that gives anyone with proper credentials access from any location with an internet connection.
Maintains consistency between users
When multiple workers are working on the same digital file, it’s easy for mistakes to happen. Since cloud-hosted files exist in the same central location, data is automatically synced between all devices, which means people are using the most up-to-date version of files.
Allows for remote programs
Businesses rely on software that isn’t commonly used at home. Since specialized software is often installed on company computers in the office, cloud computing allows users to access all types of files and applications as though they were in the office. By removing the barrier of entry for employees to use the programs they’re comfortable with, regardless of where they are physically, cloud computing brings the office to the kitchen table.
Easy data backup
Catastrophic data loss can happen at any time. Whether that loss occurs from natural disasters, power surges, or hardware failure, affected companies are at increased risk of bankruptcy within the same year as the data loss. And while most companies have adopted backup plans, it helps to have additional contingencies in place. By utilizing the cloud to store important data, business owners can rest easy knowing that important files are safe even if hardware fails.
Cost-efficient
Buying and maintaining server equipment requires time, expertise and money. Rather than building your own bespoke server, which can be prone to downtime, a cloud computing provider stores data for you without all the downsides. Prices for business-oriented cloud services are still a monthly expense, but it’s a manageable and predictable expense in many aspects.