Microsoft recently reported some confusing statistics. A survey commissioned by the technology giant claims 29 percent of small businesses use cloud computing services. In the same small business survey, only 20 percent of the respondents said they know what cloud computing is.
How can the number of people who use something be greater than the number of people who know what it is? Simple. Many people are using clouds; they just don’t realize it.
So, how about if I turn you into that rare small-business person who knows what cloud computing is? After all, it’s not a term that’s going away any time soon, and once you understand what it is, you can decide if it’s something your business should be utilizing more or less frequently.
What is cloud computing?
Cloud computing is a term describing services delivered in real time over the Internet. The services can be free or subscription-based and include software, file storage, synchronization, backup and other utilities.
Think you’ve never used a cloud? Think again. Have you ever uploaded photos to Flickr or Snapfish to share with family and friends? Your photos are on a cloud. Other common applications people may not recognize as cloud computing services include Gmail, Hotmail, and Skype.
For businesses, Dropbox is a popular online backup, file sync and sharing service, and many businesses use the application Basecamp for project management. Microsoft Office 365, allows users of Office, SharePoint, Lync and Exchange — whether a company of one or one million — to link to these applications anywhere, anytime. Simply put: Users don’t have to be in their office to access Office. Accessing accounting software like QuickBooks via cloud allows a business owner, an outside accountant, and the company bookkeeper who happens to be stuck at home due to a snowstorm, to see the company finances together in real time.
Clouds save money
Many companies were persuaded to expand their use of cloud computing services in the past couple of years because budgets were tight and there was a willingness to try anything to save money and stay afloat during the lingering economic downturn.
By using a cloud, a company can cut down on the number of people needed to handle information technology (IT) in-house. No one is needed on the payroll to maintain and troubleshoot servers, which saves money. In fact, no server is needed, saving even more money. And software accessed through a cloud is considerably cheaper than packaged software, not to mention the elimination of all that packaging is good for the environment.
Clouds are simple
Generally, cloud-based services are easy to use. They require only a computer, a browser, and an Internet connection and, unlike a server, require no maintenance from the user.
Clouds protect data
If something were to happen to your office — fire, flood, or other natural disaster — your data could be lost if it were stored on a server at the same location. Using a cloud computing service for data storage means your data is safe even when your building is not.
Clouds make business truly mobile
Laptops and smart phones have made businesses mobile, but cloud computing takes mobility to a new level. Now you don’t need your laptop to access your company’s information … you can use any computer … and you can work on a project in real time with co-workers from anywhere you, or they, happen to be.
Big support for little businesses
Cloud computing levels the playing field somewhat between big companies and small companies by providing David access to the kind of infrastructure that only Goliath had in the past. It’s like having a huge IT department that you never have to think about.
But clouds can be risky, too
An actual cloud is vapor. There’s nothing you can hold on to. Cloud computing is the same; there’s nothing for you to hold on to. While it’s cheaper and easier not to have to buy, store and maintain servers, packaged software, etc., utilizing cloud computing services involves a certain amount of trust on your part.
Be aware of the risks involved in putting your data in the clouds. One risk is that you can never be 100 percent certain who has access to your information once it has migrated beyond the hard drives and backup storage devices in your office.
Another risk is that the information, and sometimes the applications you need to make use of it, may be available only when you are connected to the Internet and the service is up and running.
A third risk is losing ownership of your data. Before utilizing a cloud computing service try to find out if you still own your data once it goes into the cloud. Ask if you can share data between cloud services if you plan to use more than one. Determine what happens to data if you terminate a cloud relationship or the company providing the cloud service goes out of business. Can you get your data back and what format will it be in? How can you be sure all other copies are destroyed?
To protect your company data, read the fine print about security and privacy before signing on to use any cloud computing service. Usually, convenience outweighs risk if you are utilizing a trusted, well-known provider. Cloud computing experts have likened security breaches to plane crashes; they happen so rarely that when they do, they get a lot of attention. Still, using clouds, like choosing whether or not to fly in a plane, depends on an individual’s comfort level. You may be perfectly comfortable storing e-mail on a cloud, but not prepared to put a year’s worth of financial data out there.
SHARE YOUR CLOUD STORY
I’d like to know how much PRO readers are utilizing the cloud computing services. I’ll bet it’s more than you realized before you read this column. What has your experience been like? Are you on Cloud Nine over what this technology means for your business, or does your cloud experience feel more like a cyclone? E-mail your cloud story to editor@promonthly.com.
