Part I on Cloud Computing: 3 Reasons Why Your Business Should Use Cloud Computing Now

cloud computing Cloud Computing, by definition, is “the practice of using a network of remote servers hosted on the Internet to store, manage and process data, rather than a local server or a personal computer.”

Let’s be honest, that sounds terribly boring. And you’re probably wondering: I don’t even know what half of that means.

As an intro to cloud computing, take a look at the infographic we have for you. Now, let’s talk about why your business needs to upgrade its IT infrastructure and adopt cloud computing with arms wide open. Using cloud computing services helps you increase efficiency, cut down on costs, and change the way you do business.

  1. Demand-Supply management: Cloud computing gives you the opportunity to be ridiculously client focussed using big data and data analytics. Imagine owning a gaming store that sold console games. If Game A was trending that week and Game B was not doing so well, data analytics would allow you to identify that trend, allowing you to stock up accordingly. Not only would you improve sales, you would manage inventory better and improve your turnover rates. For your business to be flexible and sustainable, you need solid data to back up your decisions. Cloud computing offers insight into your customer’s preferences. Using this data will give you the competitive advantage that you need.
  1. Cost reductions:
  • By using the Cloud, you can cut costs by moving from the CAPEX model to the OPEX model. This is particularly useful for companies that have a high debt burden. Initial capital expenditure on IT assets or building your IT infrastructure is not fully deductible, which leads to higher taxes. On the other hand, operating expenses on running services through the cloud are fully tax deductible. By moving your system to the cloud, you will be able to free up capital for other investments.
  • There is another benefit to cloud computing on your balance sheet. Think about the IT infrastructure you have set up for your business. You have 10 servers that work perfectly well on a regular basis. All of a sudden, during a special discount that you are promoting through your website, you notice greater traffic. Now you need 5 more servers to sustain the traffic. However, the investment is too expensive for the limited amount of time that you are using it for. If you could rent and pay for servers for just a short period of time, wouldn’t that make more sense than investing in assets that will not pay off in the long run?
  1. Remote-monitoring: This one is easy. By using the Cloud, you can access your company’s data anywhere and at any time. When you’re on that much needed holiday in the tropics, your spreadsheets back home will be of no use to you. With Cloud Computing, you can get back to your business at a moment’s notice and respond to any emergency, all this while sipping on some mai tais and preparing for the beach volleyball game.

Now, if you already knew all of the above, then you have probably contemplated the next question. What about security? We understand, recent security breaches that have led to disasters for some companies do not instil confidence in what we are talking about. Sensitive information is at risk when you are using Cloud Computing. But here is what’s important for your business: if IT is not your core competency, then no matter how much you invest in security, a company that rents out servers probably has a more secure system in place. Again, this is about how you want to use your resources to focus on your business.

Singapore is a great example on how Small to Medium sized Businesses (SMBs) have adopted cloud computing. Cloud Comrade, a company that provides solutions on cloud management, says that around 63% of businesses in Singapore turn to companies like Cloud Comrade for cloud technology solutions. Singapore is one of the fastest adopters of cloud computing services.

Altogether, the reasons for cloud computing, especially for SMBs was put very simply by Pavel Ershov, Parallels’ vice president of service providers business for the Asia Pacific and Japan regions:

“SMBs today have the best of both worlds to help them grow their businesses–cloud services offerings with enterprise-grade capabilities at affordable costs”


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