Cloud Computing for the Small Business

What is Cloud Computing and How Can it Help Me?

Nicholas Ward
For a small business, cloud computing can be a great option. Cloud computing is the act of sending your data to the "cloud" to be processed. We use cloud computing in our everyday lives and often don't even realize that we are using it. Your email session is completely computed on a server in the cloud.

What is the cloud?

The "cloud" is the internet, and the term "cloud" was brought into being by the phone companies long ago, so the idea is not new. However, the term cloud computing is growing in its usage due in part to the ease of access on the Internet today.

Why does my small business need cloud computing?

What makes cloud computing so vital to the small business is the low-cost model. When a company requires every employee have a computer and every computer be able to access the same files it usually requires a server. Server hardware can become very expensive in a relatively short amount of time.

How does cloud computing help me?

One of the ways that a small company can take advantage of cloud computing is to connect to services like Amazon Web Services. AWS allows you to create a connection from your router to a virtual server on the Internet. Inside of this virtual server, information may be stored, processed and retrieved by anyone inside your network. The AWS product model allows for a cost-effective replacement for your traditional server.

Email, billing, shipping, receiving, and customer data can all be stored in the cloud allowing your entire company to have access to the information they need, when they need it. The cost of using the cloud is considerably less than the cost of building a server for your small business. AWS services cost around $30 a month for the connection plus bandwidth and processor usage. In contrast, a hardware based server could cost over $3,000 and that is a large investment.

The bottom line for every small business is ROI (Return On Investment). The shorter the return, the better the investment. It could take many months or even years for a server to yield its return. In comparison, less than $100 a month could be invested into the cloud. There are many special case uses for a cloud server as well. One such usage is processing data.

The cloud can compile data?

A small business that is compiling large amounts of data for games or web apps may wish to use a cloud in the interest of saving time. Google currently has the app engine which could be utilized to not only store data, but also compile web-based applications for your website. For a low $8 a month you may build your applications on Google's servers and use all the power of Google to shorten build times.

As the amount of data that can be passed on the Internet grows and the power of a server continues to grow, it becomes more reasonable to send a large file to be compiled on a server. for a small cost than to build a computer capable of creating those software builds.

More information on cloud computing:
Cloud Computing Wiki
How Cloud Computing Helps Small Businesses

Published by Nicholas Ward

From the time Nicholas Ward was old enough to hold a screw driver Nicholas Ward has been taking things apart just to see how they work, and as Nicholas Ward got older, Nicholas Ward found he could repair the...  View profile

  • Cloud computing gives you a way to get the work done without the cost of hardware.
  • Get things done faster with cloud computing.
  • Cloud computing puts all your data in one central location without added hosting costs.
Cloud computing was derived from the term cloud created by the phone industry to describe VPN networks across wide span phone lines, and was later adopted to include the computation of data across Internet streams.

8 Comments

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  • Mary Kirkland1/14/2011

    Interesting, I learned something new.

  • Philip Theibert11/7/2010

    Great info?

  • Philip Theibert11/7/2010

    Great info?

  • Carmen Magnolia11/2/2010

    Great job!!!

  • Carmen Magnolia11/2/2010

    Great job!!!

  • David B. Bolick10/27/2010

    Google is definitely on top of the cloud thing. Very good, clear, explanation of a confusing subject.

  • Joan Haines10/26/2010

    I use cloud computing just about every day. The uses you've outlined are exciting low cost options that decrease overhead for small business.

  • Tiffany Booth10/26/2010

    Great article =0)

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