Performance and productivity
A day in the life: What enterprises can learn from SMEs
The work lives of an IT manager in a small startup and the CIO of a large business...
The benefits of the cloud for businesses are becoming clearer, but where should SMEs start when looking to make the move?
The ability to access top-quality, efficient business resources – whether software-as-a-service (SaaS) or simply flexible storage capacity for data – at a fraction of the cost of in-house solutions has allowed startups to survive and SMEs to scale up.
RightScale’s 2017 State of the Cloud Survey (the largest survey on the use of cloud infrastructure that is focused on cloud buyers and users) asked 1,002 IT professionals about their adoption of cloud infrastructure and technologies. One of their key findings was that companies now run 79 per cent of workloads in cloud, with 41 per cent of workloads in public cloud and 38 per cent in private cloud. As for SMEs specifically, figures show that 83 per cent of their workloads are run by cloud – 50 per cent public and 33 per cent private.
But despite the appetite for the cloud, many SMEs remain unsure about what they should be moving to the cloud, let alone which cloud computing model they should adopt.
Moving to the cloud doesn’t mean shutting down all in-house servers and applications. It can be a staged process of transitioning IT functions, or a piecemeal approach with some functions staying in-house. Email, instant-messaging services, file sharing and online meeting services are all obvious applications to start.
Running email and IM services, for example, can be a huge administrative burden to SMEs. If something goes wrong, the entire business can falter. With email in the cloud, that burden shifts to the provider and businesses can ensure they get service-level agreements to protect against any downtime.
Rather than looking at existing applications and servers for the cloud, consider new projects and needs. SMEs should source quotes for any new IT demand from a cloud service provider. If someone has a product that will work as well or better than what the company can afford with a package solution, it should be seriously considered.
There is a general reluctance across the board when it comes to sharing certain types of data with cloud providers. For SMEs, they must not only consider the security of their data, but also data governance and compliance. Investigate specific rules and regulations covering data protection pertaining to your country, so that you can start to understand how to handle certain datasets.
However, small companies can still relieve some of their data burden by using the cloud as a backup. This is cheaper for the firm and reduces the workload for IT workers.
Moving to the cloud doesn’t mean ‘stripping down’ the in-house IT department. In fact, it can allow SMEs to use applications that would otherwise be cost-prohibitive to buy wholesale. Most of the software a small business requires – enterprise resource planning, customer relationship management, human resources management, business intelligence – is available from companies through the cloud, and the hosting company is usually the OEM, giving the SME the best application at a fraction of the price and the most knowledgeable support team.
The cloud gives SMEs and startups the ability to compete with large companies. Once upon a time, no matter how great the products were or how slick the business plan was, a small firm just couldn’t match up against the resources of corporations. The big players had money, staff and resources to scale up at a rate that was far beyond an SME’s abilities. But the cloud has changed everything.
SMEs no longer need to invest huge amounts in hardware and software technology, cybersecurity and server space before they even get started on their business. They can outsource those tasks and concentrate on building the business the best way they know how.
The same is true of scaling up or branching out into new industries or regions. Previously, a business had to invest a certain amount to be taken seriously in a new sector or location – in effect, they were gambling on their own success. In the cloud they can expand quickly and, crucially, scale back if the timing isn’t right.
Like any business decision, cloud adoption shouldn’t be rushed – every foray into the cloud should have a solid business case behind it. However, those not looking to the cloud at all risk being left behind.