1. Summary

Cloud computing offers the benefit of being able to access software and solutions via the internet without actually owning it. That is the principle of cloud computing – a new approach to internet technology for both larger and small businesses.

 

Cloud computing provides flexibility, efficiency and cost savings for businesses. For smaller businesses who do not wish to purchase systems outright, it gives you access to the best and latest technology and support with minimum management overheads on a pay-as you go basis.

 

Cloud computing has been enabled by the advent of Superfast Broadband. The high bandwidths enabled by fibre technology have removed the barriers that previously made the use of remote servers and services unmanageable. Today, however, you can achieve almost seamless integration of your own systems and those hosted in the cloud.

 

At the end of 2018, it is projected that more than 85% of UK businesses will be using at least one type of cloud service (Source: telegraph.co.uk).

 

2. What benefits might I expect?

  • Improved productivity: Cloud-based applications allow off-site staff to update information in real time rather than having to come back into the office.
     
  • Scalability: Cloud software and data storage use a pay-as-you-go model known as Software as a Service (SaaS) that can be easily scaled to meet your current and future business needs.
     
  • Improved market response: Many SaaS applications integrate easily, allowing you to respond to market needs and make changes quickly and cost effectively.
     
  • Enhanced collaboration: When systems are co-ordinated across the business, data analysis becomes easier and market data more accurate.
     
  • Increased sales: A cohesive strategy that runs across all marketing channels makes it easy for customers to recommend you and encourage exponential growth.
     
  • Improved customer loyalty: You can increase customer retention using Customer Relationship Management (CRM) and social media to build long term relationships. 
     
  • Better customer service: You can also use CRM reports and analysis to plan marketing campaigns and deliver enhanced customer support and services.
     
  • Smarter choices: Virtual, rather than face to face meetings allows you to minimise costs, reduce fuel consumption and win back lost travel time.
     
  • Easier maintenance and upgrades: cloud providers have full responsibility for maintaining and upgrading your software to the latest version. No longer do you need to worry about being out of date or spend time installing updates.
     

3. Real life example

A South Wales based law firm has used the internet and cloud technology to dial down stressful situations. NLS Solicitors have placed digital technology at the heart of its operations to progress the rising number of immigration enquires its received since the EU referendum. 

 

“Anything that can help reduce the pressure of delays in emotive situations is enormously helpful,” Nicholas Webb, one of four founding partners, says.

 

As the UK leaves the European Union the solicitors, who offer support for family visas and asylum claims, sponsor licence applications, and European free movement cases; expect the number of people seeking advice to rise significantly.

 

“With the uncertainty surrounding immigration becoming noticeable, we wanted to use the internet and cloud technology to make things easier… People often need information instantly and to feel their case is being taken care of and not lost in the system. Our ability to reduce administration, to be instantly responsive, and to be accessible via Skype, for example, has really helped,” Webb explains.

 

 “Using the cloud has been fundamental in keeping our client’s cases moving and our costs low. It’s crucial when you consider the initial investment required to open three offices and employ 11 people with a further two roles soon to be filled. We couldn’t have done it without thinking digitally”.

 

4. What are the cloud based technologies?

The term "cloud computing" is everywhere. In the simplest terms, cloud computing means storing and accessing data and programs over the internet instead of from your computer's hard drive.

 

Why cloud computing is getting more popular?

 

Where in the past, you would purchase and run applications or programs from software downloaded on a physical computer or server in your business, cloud computing allows you access to the same kinds of applications through the internet.

 

What are some examples of cloud computing?

 

Cloud computing is the use of hardware and software to deliver a service over a network (typically the internet). An example of a cloud computing application is internet banking. The software application and data does not reside in your computer but in the cloud. This means that it can be accessed via the internet from any device. A second example is emails such as G-mail, Hotmail or Yahoo or in social media terms, LinkedIn and Facebook. A third example in business would be the storage or sharing of data and documents on systems such as Dropbox.

5. Are there a downside to cloud computing?

As with any technology it is a not a one-size-fits-all solution.

 

Consider the application

 

Some will claim that cloud computing is the best thing for small business since the invention of the stapler. This does not mean that there are no cloud computing disadvantages and that every small business should immediately throw out all their servers and desktop software and conduct all their business operations in the cloud. As an example, performance-intensive applications such as video editing are not suited to the cloud, nor are other types of software that require high-performance desktop computers (such as those used for graphic design).

 

If your accounts, payroll or your customer database are only ever accessed from your office location, why would you put them on the cloud?  In instances such as this, server based applications are still the best solution for small businesses.

 

Internet connection dependency

 

Whilst Superfast Broadband is becoming increasingly more reliable, cloud computing does make your business dependent on the reliability of your internet connection.  When its offline, its offline and whilst 99% reliability sound great. The 1% equates to more than 3 days each year offline!

 

Security

 

How safe is your data? Cloud computing means internet computing. As a simple rule you should not be using cloud computing applications that involve using or storing data that you are not comfortable having on the internet.

 

Costs

 

To be sure that you are saving money, look closely at the pricing plans and details for each application, taking into account possible future expansion. As with mobile phone plans, the devil can be in the details with cloud service contracts.

 

Customer Support

 

In the early days of cloud computing poor customer support was constant complaint from users. Fortunately, most suppliers have made great strides in improving technical support over the past few years.

 

If your business needs are such that you need rapid response to customer support issues, make sure that your cloud services supplier has plenty of options available for technical support, include email, phone, live chat, knowledge bases, and user forums. In addition, be prepared to pay for higher levels of support, particularly on evenings or weekends (if you need it).

 

Recommendation

 

For small businesses the recommendation is to start cloud computing slowly; choose one or two of your business applications to replace and see how it goes. Once you are comfortable that it is bringing benefits then you can evaluate additional cloud applications and advantages.

6. Recommended action points and tips

  • Plan what to put into the cloud: The first question to answer is, what should go in the cloud? The decision of what to do should be a business decision looking at the operational benefits that will accrue.
     
  • Check compatibility: If you are opting for an online software solution, you will need to be sure it is compatible with those systems that remain in-house. For example, if HR is on a SaaS application but payroll is staying on your own computers, the two will have to communicate.
     
  • Evaluate your options: Once your plan is in place you can then start evaluating cloud-based applications for your business. Consider costs, of course, but the key will be to select a solution that addresses your defined business needs. It is value that is the key.
     
  • Security concerns: In an age where cyber threats from malware (Ransomware, Viruses etc.) are prevalent, having the latest version of a system significantly reduces the risk of infection. Online solutions, like any other, are vulnerable to cyber-attacks – although their security measures will probably be better, and more up-to-date than most small businesses.

7. Additional information