As cloud computing becomes more and more mainstream, the potential consumer demographic has a range of new options – options with more advanced features and capabilities, and options that are more affordable.
In this article, we will be tackling some of the cloud computing possibilities that you can look into to make your small business operations more efficient:
Cloud-based IT infrastructure
Maintaining an IT infrastructure in-house is costly, especially so for startups.
First order of business is to get your IT team ready. Next, you will need to purchase servers, software, and other networking equipment. From then on, the system will need monthly maintenance.
According to a Rackspace whitepaper:
- The estimated three-year cost of a system consisting of a load balancer, two application servers, and two database servers deployed in an internal IT setting is $149,000.
- The same infrastructure, albeit in the cloud, results in an overall savings of 29% over the same time period.
As noted in a Gartner press release, the move to the cloud by enterprises is a notable trend that may prove beneficial, especially for businesses with more complicated resource needs.
To quote:
“This approach may provide benefits where the workload has a highly variable resource requirement, or where the application naturally lends itself to horizontal scalability.”
Horizontal scalability, according to TechTarget, is “the ability to increase capacity by connecting multiple hardware or software entities so that they work as a single logical unit.”
Internet of Things
Forbes.com’s Jacob Morgan defines the Internet of Things (IoT) as the “concept of basically connecting any device with an on and off switch to the Internet (and/or to each other).”
IoT is another way for organizations to cut on costs and improve business efficiency.
Where actual workforce costs require not only monthly wages but other employee fringe benefits, and not to mention tardiness, absences, paid sick leaves and vacations, IoT offers an alternative that requires less manpower but with round-the-clock workload-handling capacity.
Imagine managing a manufacturing system by establishing links between inventory, production, and delivery using data aggregated from customer relationship management (CRM) systems:
- In-demand products or services will be prioritized, with the order of delivery organized according to location proximity and delivery urgency.
- Human error will be minimized.
- Data accuracy is maintained through a single, uninterrupted processing system where product or service information can be collated, organized, and addressed in real time.
Interconnected devices enable businesses to sell goods or services better by making billing, inventory, and other customer-centric processes immediate and cloud-based, as opposed to a more time-consuming manual approach at the cashier.
Even doors and gates can be locked or unlocked using a mobile or web app. Inventory becomes more efficient as store freezers alert business owners of supplies like meat, milk, or vegetables that are running low.
A study by the Boston Consulting Group, as cited in a Media Planet article, found that IoT adoption by SMBs resulted in a 15% faster annual revenue increase compared to those who chose not to.
Beacon technology
As more and more people own smartphones, increasing beacon technology usage becomes inevitable.
In a 2015 Pew Research Center study, almost two-thirds of Americans now own a smartphone. The study also notes that smartphones are a main entry point to the Internet for many users.
Beacons are small, low-cost devices that make use of battery-friendly Bluetooth technology to transmit messages to smartphones, allowing retailers and marketers to push targeted, location-specific content to nearby users.
One of the ways beacons are beneficial to small businesses is by automating the dissemination of timely information on:
- Product specifics
- Aisle locations
- Support
- Discounts or coupons
- Loyalty programs
This frees salespeople to work on more value-adding tasks focused on nurturing customer relationships.
Beacons can also be used for mobile billing, where customers can make payments straight from their smartphones, decreasing queue lines.
Big retailers such as Macy’s and Target have already begun testing beacons, and in a Business Insider report, the technology is expected to directly influence over $4 billion worth of US retail sales in 2015 at top retailers, with the number increasing tenfold in 2016.
Wearable technology
Wearable technology is gaining ground in the business world, its market value expected to climb to $12.6 billion in 2018 from $6.3 million in 2010.
A study by the experts at Goldsmiths, University of London shows that wearable technology yields an 8.5% increase in employee productivity and 3.5% in job satisfaction.
As proof of the turnaround in wearable tech’s reputation, from interesting novelties to game-changing business tools, in 2014, Salesforce launched Salesforce Wear, a platform for developing apps for wearable devices such as Android Wear, Fitbit, ARM, and Pebble.
Google Glass has gone on to become Glass at Work, while the Apple Watch now has Apple Pay built into it so users can conveniently use it to pay for their purchases.
Compared to their larger competitors, small businesses are better positioned to adopt new technologies, including wearable tech.
Says Adam Spearing, Salesforce’s VP Platform EMEA:
“The wearable revolution gives small businesses the opportunity to differentiate themselves against their competitors through tremendous innovation and high quality of service.”
Cloud-based enterprise software
Fast becoming the norm rather than just a trend, cloud-based enterprise software have proven to be a worthy investment for small businesses with modest budgets.
Some examples include:
- Payroll
In an Inc.com article, according to ZenPayroll’s CEO Joshua Reeves, of the 40% of the 6 million small businesses in the U.S. that process payroll manually, one-third get fined every year for payroll tax issues.
By using cloud-based payroll solutions, which generally have taxation features, small business owners can rest easy knowing that as long as their initial settings are spot on, the payroll system is capable of providing accurate data they can rely on.
- IT security
Security is one of the pressing concerns IT decision-makers face when taking the plunge to cloud migration.
But putting up an in-house IT security operation may not be a winning strategy, especially versus just contracting the services of a reputable institution with seasoned IT security personnel and infrastructure.
Smaller businesses will not always afford the expense associated with running their own IT infrastructures. Even if they do, when systems crash, there may be no way to retrieve data or rebuild the systems without negatively affecting the company’s operations.
Trend Micro assures cloud computing skeptics that compared to keeping essential data in computers or USB drives, which is what normally happens if you can’t afford a centralized data server in your organization, established cloud providers are:
“… fully regulated and certified by independent standards bodies to a high degree, and as a result would be protected by state-of-the-art security systems preventing data theft. Backup is continuous and if you lose your machine, there’s no need to worry because all the data is stored in the service providers’ data centers. If they go down for some reason, there should be another backup plan to ensure business continuity.”
- Office applications
In a Cisco Global Networking survey, the majority of IT decision-makers chose “email and web services, followed by storage and collaboration solutions” as top reasons for migrating to the cloud.
Even desktop application developers Adobe and Microsoft Office have moved some of their services to the cloud.
Rather than tax their hardware assets with manual installations, bug fixes, or security upgrades, small businesses can choose to let cloud providers handle these server-side responsibilities and allow their people to focus on actual, critical business processes.
Final word
Enabling you to do more with less is what technology is about. Cloud computing eases the barrier to entry for organizations with meager budgets, leveling the playing field and enabling them compete with their much bigger counterparts.
The post How Small Businesses Can Benefit from New Technology Trends appeared first on Cloudswave Blog.