Beyond Efficiency: More Benefits of Cloud Computing

We talk about the benefits of cloud computing often on our blog because we feel that it is an innovative and important slice of technology that has a lot to offer.  Our article, Why Startups and The Cloud Go Hand in Hand, discusses how new businesses can use cloud computing to their advantage and another piece we wrote, SMB and The Cloud: A Perfect Marriage?, details how cloud computing is well suited for the unique needs of small to medium sized businesses.  Today we are going to share Edwin Schouten’s take on some benefits of cloud computing which he wrote about in an article for Wired last month. 

In just about every article that discusses the benefits of cloud computing, you will inevitably read something about the increase in efficiency cloud computing can bring to a business or organization.  Cloud technology allows users access to business data virtually any place and any time, and the task of IT maintenance for cloud related services go essentially unnoticed.  Schouten uses his personal experience with users of cloud computing to put together a list of the top five business benefits of the cloud that look beyond efficiency.

Business Agility

Cloud technology can reduce project time-to-market and overall cost significantly.  With cloud resources available whenever and wherever you need them, business operations become increasingly more nimble and responsive.  The business world is not a place for the sluggish, and the agility cloud technology can lend to an organization gives it a great competitive edge.

New Business Models

Readily available cloud services can often be a catalyst for innovative business initiatives.  Schouten states, “Utilizing or combining these services can result in new and innovative business models, generating new value propositions and resulting in new revenue streams. There are even companies that are building entirely new business models and value propositions solely using cloud services.”

Fewer Operational Issues

The standardization offered by cloud technology significantly reduces issues and defects in business operations.  Obviously, dealing with fewer operational issues means business resources are available to focus on the actual tasks of the business or to create improvements rather than manage repairs.

Better Use of Resources

The efficiency, agility, and decrease in operational issues the cloud can offer all add up to a better use of your business resources in general.  All of these benefits are essentially about freeing up time and energy so employees can focus on business activities that have the greatest positive impact on your organization.  Schouten notes, “This benefit is different for every organization and harder to quantify, but people are an organizations biggest asset and this allows you to better utilize this asset.”

Less Capital Expense

With the cloud model allowing businesses to transfer expenditures from capital investments to operational expenses, long-term financial commitments can be reduced.  This allows organizations to begin projects with smaller (or zero) upfront investment and terminate projects without losing financial resources.

These are some great points to keep in mind if you are considering incorporating cloud technology into your business operations.  Schouten summarizes his thoughts nicely by saying, “there is much more to cloud computing than technology alone. The true power of cloud is what the technology, implementing rapidly deployed services in the cloud, can mean for your business.”