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Cloud Computing for Small Business - Advantages and Disadvantages

Should you adopt cloud computing for small businesses? Learn the advantages and disadvantages of the cloud to help you make the right decision.

By Edna WebbPublished 2 years ago 6 min read
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One of the biggest questions for an expanding small business is how to utilize cloud computing. It’s a common misconception that cloud services are only for large organizations; small businesses can benefit greatly from cloud adoption.

But as with any new technology, there are advantages and disadvantages of cloud computing for small businesses that must be considered before making the switch. Here we'll outline some pros and cons (including aws support plans) to help you decide if the cloud is right for your business.

What is cloud computing?

In short, cloud computing is delivering computing services—including servers, storage, databases, networking, software, analytics, and intelligence—over the Internet (“the cloud”) to offer faster innovation, flexible resources, and economies of scale.

Put simply, cloud computing is the practice of using a network of remote servers hosted on the Internet to store, manage, and process data rather than a local server or a personal computer.

What are the popular cloud service providers?

Some popular cloud providers are Amazon Web Services (AWS), Google Cloud Platform, Microsoft Azure, and Rackspace.

Amazon Web Services (AWS)

By far, the most popular cloud provider is Amazon Web Services (AWS). AWS offers more than 175 fully-featured services for computing, storage, databases, networking, analytics, machine learning and artificial intelligence (AI), Internet of Things (IoT), mobile applications, security, hybrid environments, and more.

AWS also has partners, such as IGroup, that will help you with cloud support (aws support plans), cloud adoption, and cloud management services so you can focus on your business goals while they deal with your cloud infrastructure.

Google Cloud Platform (GCP)

Google Cloud Platform is a cloud computing service that offers hosted services, including BigQuery, Compute Engine, App Engine, and Cloud Storage. GCP has several cloud-based products and services for machine learning, cloud functions, and cloud management.

Google Cloud Platform is great for businesses that want to use Google products and services, such as Gmail, Calendar, and Drive. GCP also offers excellent customer support and a wide range of pricing options.

Microsoft Azure

Microsoft Azure is a cloud computing service created by Microsoft for building, testing, deploying, and managing applications and services through a global network of Microsoft-managed data centers.

Azure offers more than 600 cloud services, including computing, storage, networking, databases, analytics, and intelligence. Azure is a fantastic option for businesses that want to use Microsoft products and services, such as Office 365, Exchange Server, and SQL Server.

Rackspace

While not as popular as the previous three cloud providers, Rackspace is a well-known cloud computing company that's been in business since 1998. Rackspace offers cloud computing, management, security, and support services. They're a great option for businesses that want a managed cloud solution with 24/7 support.

Advantages of cloud computing for small business

Should you adopt cloud computing for your small business? Let’s take a look at some of the advantages cloud computing has to offer:

Scalability and flexibility:

One of the biggest benefits of cloud computing is that it's incredibly scalable. This means you can easily increase or decrease your use of resources as your needs change, without making a large upfront investment.

Cloud computing is also flexible, which means you can access your data and applications from anywhere in the world, at any time. All you need is an Internet connection, unlike on-premises software, which needs to be installed and configured on each computer.

Cost savings:

Another significant advantage of cloud computing is that it can help you save money. Instead of having to invest in expensive hardware and software, you can rent or subscribe to the resources you need on an as-needed basis.

This pay-as-you-go model can help you save money, especially if you only need resources for a short period.

In addition, cloud computing can help you save on energy costs. Since data center infrastructure is already in place, you won't need to run your servers, which can use a lot of energy.

Furthermore, CloudOps Active Management System (CAMS) can help you optimize your cloud usage and save even more money!

Improved collaboration:

Cloud computing can also improve collaboration within your team. Since cloud-based applications are accessible from anywhere in the world, team members can easily share files, work on joint projects, and stay up-to-date on the latest developments. That not only saves time but can also help improve the quality of your work.

Automatic updates

Because cloud applications are hosted by the vendor, you don't need to worry about installing or updating software.

The cloud provider takes care of that for you, so your software is always up-to-date with the latest features and security patches. This can save you a lot of time and hassle, especially if you're not particularly tech-savvy.

In addition, cloud-based applications often include new features and updates automatically, so you don't have to wait for a new version to be released before you can start using the latest features.

Disadvantages of cloud computing for small business

Of course, cloud computing isn't perfect. Here are some potential disadvantages that come with switching to the cloud:

Security concerns:

One of the biggest disadvantages of cloud computing is that it raises security concerns. Since your data is stored off-site, it's at risk of being hacked or stolen. Furthermore, you're also relying on the security measures of your cloud provider.

If they're not up to par, your data could be at risk. However, you can mitigate this risk by encrypting your data and choosing a cloud provider that takes security seriously.

CloudOps Active Management System (CAMS) also includes features that can help you secure your cloud environment and prevent data breaches. Check out cloud management to learn more.

Lack of control:

Another potential disadvantage of cloud computing is that it can make you feel like you're losing control of your data.

Since your data is stored off-site, you won't have physical access to it, which can make some businesses feel uneasy. However, you can mitigate this risk by choosing a cloud provider that gives you the ability to control who has access to your data and how it's used.

Cloud-based applications can be customized to fit your specific needs, so you're not limited by the software.

Dependency on the Internet:

Yes, cloud computing is flexible and accessible from anywhere in the world. However, that also means it's dependent on the Internet.

If there's an issue with your Internet connection, you won't be able to access your data or applications. This can be a major problem for businesses that rely heavily on cloud-based applications.

The good news is that you can mitigate this risk by investing in a backup Internet connection or choosing a cloud provider that offers offline access to your data.

It can be expensive.

Of course, one of the biggest disadvantages of cloud computing is that it can be expensive. If you're not careful, you could end up spending more than you would if you were using on-premises software.

However, you can mitigate this risk by doing your research and choosing a cloud provider that offers competitive pricing.

The Bottom Line: Should you switch to cloud computing for your small business?

The answer to this question depends on your specific needs and budget. If you're looking for a flexible, scalable solution that can improve collaboration and save you time, cloud computing is definitely worth it.

However, if security is a major concern for you or you just don't have the budget for it, cloud computing might not be the best solution.

No matter what you decide, the cloud is here to stay, and it's only going to become more popular in the years to come. If you're thinking about making the switch to cloud computing, weigh the pros and cons carefully to decide if it's right for your business.

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