Cloud computing seems to be a flashy car on a used car lot. As with any new technological initiative that aims to sweep you away, it’s best to take that sweet car on a test drive first.
1. The growth of cloud computing is astounding.
It is estimated that the worldwide cloud computing market is $8 billion with the U.S. market accounting for approximately 40% of that: $3.2 billion. According to Gartner’s 2011 predictions, number one on their list of Top Strategic Technologies is Cloud Computing. Gartner also predicts that the SaaS market will hit $14 billion in 2013.
2. Cloud Computing Software Solutions VS Desktop Applications
The most common reason why small businesses choose cloud computing solutions over desktop applications is this: It is less expensive because you pay a small monthly amount instead of a one-time fee as it works now with traditional desktop software. On a cash-flow basis, it is less costly because your cloud based apps are often slightly less costly than an annual purchase or upgrade for common programs. However, you have to look closely at the pricing plans and details for each application.
Another common reason is that the SaaS application is often a simpler version of something that is installed on your machine and you’re currently using. There are fewer bells and whistles, so to speak, and the developers of many cloud computing apps have created just the basics that customers need to get the specific job done.
Salesforce.com, one of the market leaders in the cloud computing industry, had over 52,000 customers in 2009. Rackspace, a hosting provider, has over 1,000 SaaS apps in its new AppMatcher.com service.
3. Cloud Computing Solutions are available all the time – no matter where you are.
For some business users that operate virtual offices or operate remotely on different machines depending on location and they need the application to be accessible from a web browser. That is one of the biggest advantages of cloud computing– it is available wherever you have access to a computer and browser.
If you are not connected and operating your laptop offline, does the program offer a way to run it offline and synchronize when you are connected again? Many apps have either a mobile app or a widget you can download and run a lighter version of the software.
For example, some Google Apps offer a desktop version called Google Gears, which will sync your data when you are back online. Google Apps, by the way, has over two (2) million businesses and 25 million users in its cloud computing marketplace; including companies like Smartsheet and Batchbook, just to name a couple.
4. Sometimes simple, focused cloud computing solutions will do the trick.
Do you use all the features of your desktop app? If not, a cloud computing application might offer a “forever free” plan that allows you to do the same work as a desktop application, but limited in some way. For example, a billing solution might let you run an unlimited number of invoices, but for only 2 separate clients.
You can find a range of great applications at The Small Business Web. It offers a terrific directory of cloud based applications from accounting to versioning.
5. Be careful about the security of your data.
Many organizations are worried about the associated privacy and security risks that a cloud computing system brings when vital information is made accessible to a third party. Generally, if you operate in an industry that requires greater privacy or security standards and you find a cloud computing app vendor working with your industry, then they’ve likely developed for that standard requirement. However, check the details to fulfill any legal, financial, or ethical concerns.
6. Make sure that your cloud computing vendor is stable and reliable.
Are you sure you want to invest your cash in this particular cloud computing software vendor? How long have they been in business? How many customers do they have? Can you talk to users directly?
You can sometimes read the testimonials and get good information and if the testimonials are real, they will often link to the person who made the comment. While those individuals do not expect to be contacted by every interested prospect of a cloud computing app vendor, you may be able to talk to some of them.
7. Consider the uptime of your cloud computing applications.
Uptime is the time a hosted application’s performance record essentially. Most are in the range of 98-99.9%, which acknowledges that servers go down for maintenance or unexpected problems.
How quickly do they fix the problem? This can be an issue for mission critical applications and you’ll often see the highest uptimes for apps that are in this category. They know how important their service is to customers. These are often covered in what’s known as Service Level Agreements, or SLAs, so read those carefully and discuss changes with the vendor, if needed.
8. Be certain that they have true customer support.
Is there an extra charge for support and maintenance or is that included in your monthly subscription fee? It is usually included, but like any purchase, read the fine print. Check if you have access to a customer support team via phone, email, or social media.
9. Your cloud computing vendor should be flexible.
You can add and subtract users, as needed (some call this scaling where you can increase your software license “seats” incrementally). Your monthly fees are dependent (usually) on how many users you have. Often, your capital outlay to “purchase” cloud based apps is lower than traditional on-premise or desktop apps.
Source:
http://smallbiztrends.com/2010/11/16-questions-to-ask-yourself-before-choosing-cloud-computing-solutions.html
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