SMBs Will Rise To Cloud Computing - InformationWeek
IoT
IoT
Cloud // Software as a Service
News
6/19/2008
01:00 PM
Fredric Paul
Fredric Paul
Features
50%
50%
RELATED EVENTS
Ransomware: Latest Developments & How to Defend Against Them
Nov 01, 2017
Ransomware is one of the fastest growing types of malware, and new breeds that escalate quickly ar ...Read More>>

SMBs Will Rise To Cloud Computing

The trend toward Web-based services tilts the IT playing field in favor of smaller companies.

If cloud computing offers benefits to enterprise IT departments, it's an absolute godsend to small and midsize companies. Instead of making do with a small, underresourced IT staff trying to emulate the productivity of IT outfits with multimillion-dollar budgets, smaller companies can now access enterprise-class technology with low up-front costs and easy scalability.

Important as those things are, they're only the first steps in a larger shift. Cloud computing doesn't just level the playing field--it promises to tilt it in the other direction. Simply put, today's most powerful and most innovative technology is no longer found in the enterprise. The cloud makes leading-edge technology available to everyone, including consumers, often at a far lower cost than businesses pay for similar or inferior services.

InformationWeek Reports

Years ago, most people had access to the best technology at work, Google VP Dave Girouard said recently. "You had a T1 line to access the Internet at the office, for example, then went home to watch three channels of TV."

Those days are gone. Compare a typical Exchange Server, offering perhaps 500 MB of e-mail storage per user, to Web-based e-mail services that give users up to 7 GB of storage at no cost. (Google's corporate version offers 25 GB per user for $50 a year.) Likewise, compare on-premises enterprise content management systems to easier-to-use and more-flexible cloud-based publishing and sharing systems like Blogger, Flickr, and Facebook. They're free, too.

Those comparisons may not be relevant to big companies, but they are to SMBs. While large enterprises typically use the cloud for infrastructure services such as storage, SMBs are more likely to plug into the cloud for day-to-day productivity applications, says Michelle Warren, a senior analyst at Info-Tech Research.

In fact, as cloud computing matures, we'll see small companies rely on the cloud for more and more of their technology needs, gradually eschewing the costs and complexity of in-house IT infrastructure.

"We're moving toward a world where IT is outsourced," Warren says. "Maybe not 100%, but 95%. It will happen more in the SMB than in the enterprise, for sure."

Fredric Paul is publisher and editor in chief of TechWeb's bMighty.com, which provides practical technology expertise to small and midsize businesses.

Illustration by Sek Leung

Return to the story:
Guide To Cloud Computing

Comment  | 
Print  | 
More Insights
Comments
Newest First  |  Oldest First  |  Threaded View
How Enterprises Are Attacking the IT Security Enterprise
How Enterprises Are Attacking the IT Security Enterprise
To learn more about what organizations are doing to tackle attacks and threats we surveyed a group of 300 IT and infosec professionals to find out what their biggest IT security challenges are and what they're doing to defend against today's threats. Download the report to see what they're saying.
Register for InformationWeek Newsletters
White Papers
Current Issue
Digital Transformation Myths & Truths
Transformation is on every IT organization's to-do list, but effectively transforming IT means a major shift in technology as well as business models and culture. In this IT Trend Report, we examine some of the misconceptions of digital transformation and look at steps you can take to succeed technically and culturally.
Video
Slideshows
Twitter Feed
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.
Flash Poll