How Can Cloud Computing help SMEs

Cloud Computing is an internet based computing based computing where various resources like software, information, storage, processors are shared and provided to computers and other users on demand. It marks a paradigm shift from traditional computing based on mainframes to client server model. User is on one side, abstracted from the details and devoid of control over severs, and the technology infrastructure in form of cloud on other, which supports them as and when need arises. This usually takes form of a remote computer where user with the help of web based tools can access and use through a web browser as it was locally available on his computer.

Thus it not only reduces the cost per terminal for user, but also results in optimal and efficient use of available resources and technologies. Also increased reliability, scalability via dynamic allocation, device and location independence, security due to centralization of data and maintenance costs get better managed and executed. Thus it offers immense opportunities for users as they can opt to pay for what they use, while it opens a new era for corporate also.

Cloud computing has created a buzz in the IT industry and is being hailed as future of computing, where everything will be moved to cloud. It will extend capabilities being offered currently and will change the entire business model of IT industry. According to Frost and Sullivan, the global on-demand software market is expected to grow from the current level of USD 40 million to USD 800 million by 2015, with SMEs fuelling the growth.

Benefits offered by Cloud
Cost: Cost of owning resources greatly reduces and capital expenditure is converted to operational expenditures.

Device and Location Independence: It enables user to access system via web applications and browsers, irrespective of physical location of system. User can connect from anywhere and anytime.

Resource Sharing: Since resources are shared amongst various users in a cloud, it allows for utilization and efficiency improvements.

Centralization: Infrastructure is centralized, allocated to various users on demand, thus if one user needs a bigger share of infrastructure for its peak load capacity, it can easily be allocated to him, without having to spend on installing extra infrastructure or effecting other users.

Scalability: Since resources are allocated dynamically, user may scale up or down their operations as per their requirement without having to worry about requirement of new infrastructure.

Innovation: Users ability to adapt new technologies increases as he is not struck with legacy infrastructure or software.

Reliability: Since multiple redundant sites are maintained to ensure reliable service by the provider, overall reliability of service increases.

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