Cloud computing is an important resource that has gained growing support among small and midsize businesses worldwide. These businesses are attracted to the cost-effective competitive benefits the cloud affords to smaller business. By providing access to tools that otherwise would be unavailable to them, cloud computing enables smaller firms to become more agile, operate more efficiently, and compete and grow against larger-sized firms.
The cloud provides a way for these smaller businesses to overcome several key challenges they face when investing in IT. Cloud solutions are easily scaled to meet growth needs. Solutions are maintained and upgraded without the need to hire additional staff, and they do not require on-premise resources such as space, power, and cooling.
By providing online access to remotely hosted services through high-speed Internet connections, cloud resources provide more than just an alternative way to deploy new technology. The cloud model is an alternative to the traditional software licensing model, making the latest software more affordable than ever before.
Essential Guidance for Early Stage Cloud Users or “Cloud Beginners”
- The first stage of cloud engagement involves leveraging new resources for maximum impact. Assess performance improvement with an eye toward building active internal supporters for cloud solutions. (Not just improved processes but better staff experience, ease of getting job done as a way to build advocacy.)
- Identify next steps/areas for cloud enhancement. This can be a new operational area or resource (the first time doing something), or it can be repair/replacement for an approach that is not having success. Past IDC research has shown that “low-hanging fruit” that can easily and quickly show positive results is where most small and midsize firms have the greatest success in deploying new technology. Time to value is key.
- The “internal imperatives” of sharpening efficiency and improving performance will drive visibility of successful cloud expansion. Cost savings is no longer the reason for investing in cloud solutions – the reason is operational ease of deployment without undue burden on the IT staff.
Essential Guidance for Intermediate Stage Cloud Users or “Cloud Expanders”
- Small and midsize firms that are deploying multiple cloud applications are on track to maintain their competitive position. Of course, there is more work to do to sharpen performance. Islands of technology productivity can benefit from new resources that help coordinate internal operations, but the next step toward improved business performance and outcomes is more demanding.
- Cloud resources can play a vital role in allowing small and midsize firms to leverage existing on-premise technology investments. Rather than buttress existing resources, cloud capabilities should be viewed as potential force multipliers that provide remote and mobile users with capabilities they might not otherwise have. This is in keeping with “3rd Platform” thinking that ties the resources of social, mobile, cloud, and big data in a comprehensive way.
- This ultimately means taking a fresh look at business operations to identify where new approaches can help you move beyond “modernizing” to “transforming.” Effective application of cloud capabilities can be an important part of that transformative process.
Essential Guidance for Advanced Cloud Users or “Cloud Leaders”
- A relatively select group of small and midsize firms are significantly ahead of their peers in taking advantage of cloud resources. They are in a unique position to continue the coordination and alignment of technology resources for maximum impact. While some “digital native” small and midsize firms have built their operations on cloud resources, it is more typical for firms in this group to be “digital immigrants” that have fully embraced their new land and are rigorously shedding unproductive technology vestiges that compromise agility and drain resources that can be better used elsewhere.
- With internal operations now making full use of cloud functionality to support workers regardless of location, the next challenge for advanced cloud users is to extend low-friction operations to customers and suppliers. While a firm does not have to be an advanced cloud user to benefit
- from coordinated supply chain resources or a comprehensive “single view of the customer,” cloud capabilities can play an important part in facilitating both.
- Ultimately, the full integration of on-premise and cloud capabilities in a hybrid IT environment will be essential for successful participation in the emerging digital economy. The digital transformation of small and midsize firms as they retool internal processes and external engagement will be increasingly reliant on the speed and flexibility associated with cloud resources.