CLOUD COMPUTING – A BOON for STARTUPS

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In this modern world of cut throat competition, in order to run your business smoothly, you need modern  business applications and technology. Traditional business applications have always been complicated and expensive. The amount and variety of hardware and software required to run them are daunting. You need a whole team of experts to install, configure, test, run, secure, and update them.

When you multiply this effort across hundreds of apps, it’s easy to see why even  the biggest of the companies, with the best IT departments find it difficult to get the applications they need. Small and mid-sized businesses don’t stand a chance.

Here’s where cloud computing comes into play. The term “cloud” is used as a metaphor for the Internet. Cloud computing is basically a means of using the internet for your computing needs, where resources and software are basically provided to you over the internet and you are charged for the amount of service you use , something like the electricity grid. So with cloud computing you don’t have to worry about maintaining the hardware .You are charged only for the time you are using the applications unlike the traditional services and all the upgrades are automatic.

There was a time when launching a serious startup required serious capital. Seed money was required for hiring talent, marketing and promotion, office space, and for technology to make it all happen. Thanks to cloud computing and social networking resources, the technology portion of the equation is suddenly diminishing, dramatically. It’s at the initial startup phase that cloud lowers the barrier to entry for many innovators. A compilation of cloud computing stats by O’Reilly Media shows that companies can save up to 30% in IT costs over a three-year period by employing cloud resources as compared to the use of on-premises equipment.

Start ups actually  avoid  infrastructural developments in any field and use the resources of any other company or expert  by tapping into the cloud.

Some advantages of cloud computing  for startups are:

Scalability  Ability to scale on demand , scale resources up and down as needed, and thus allowing for a rapid growth.

Infrastructure costs–  Infrastructure is typically provided by a third-party and does not need to be purchased for one-time or infrequent intensive computing tasks, thereby shifting the infrastructure costs from capital expenditure to revenue expenditure.

Low maintenance- There is no need to spend time and money housing, powering, and cooling the infrastructure.

Reduce labor costs – Spend labor costs on the people who will improve your core business and applications rather than on the people who must run the infrastructure. On the cloud, the vendors do that for you.

 Agility– The cloud enables companies to get quickly into the market due to the possibility of rapid improvisation of the resources and infrastructure experts.

Today the growing trend is showing that  startups are moving toward predominately cloud-based operations. With the amalgamation of underused skills and cheap online services, we may be on the verge of an explosion of entrepreneurial activity in the decade ahead that will rival anything we’ve seen before.

 

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