Experts at IDC explain that cloud spending is projected to grow by a 13.1% Compound Annual Growth Rate (CAGR), climaxing at an estimated $59.5 billion by 2020. To put this into better perspective, cloud spending will account for more than 47% of IT infrastructure spending over the next five years.
The benefits of cloud computing for small business are vast. The downsides and risks are few. For these reasons, and plenty of others, it’s easy to understand why more SMBs are racing to the cloud.
The third platform
As Network World explains, cloud is the third platform. The first platform was mainframe, followed by client/server and personal computers. However, the widespread accessibility of the cloud and its offerings, explain why it has easily overtaken its computing predecessors. As a result, millions of applications are now hosted and available via a growing list of cloud integrations, ranging from mobile applications, to Software as a Service (SaaS), social technology, big data and more.
License mobility
One of the most advantageous offerings of cloud computing for small business is license mobility. Previously, service providers such as Microsoft, Adobe and others limited the use of their software to one computer per license. The cost of integration was steep, which in turn, limited the ability of small businesses to adapt. If, say, a user needed to access the same applications from a different computer, they had to pay for an additional user license.
With license mobility, this all changes. For example, Microsoft 365 is a cloud-based SaaS that features license mobility; so is Adobe Creative Cloud. With a single monthly subscription, users can access their applications and saved files from any connected and compatible device, and without having to pay a licensing fee per device. This makes it more financially feasible for SMBs to integrate these premier software suites.
Big data
Another one of the many benefits of cloud computing for business is access to big data. In the past, small businesses could not afford to access the same type of big data channels that enterprise level entities could. The budget simply was not there.
But as Business News Daily explains, “Big Data isn't just for big businesses with big budgets. Today, small business, too, can reap the benefits of the massive amounts of online and offline information to make wise, data-driven decisions to grow their businesses.”
A growing list of big data providers offer affordable access to their data troves for businesses of all sizes. Leading the pack are service providers to the likes of ClearStory Data, KissMetrics, InsightSquared and others. While cost used to be a big barrier, it only represents 23% of the long-term cost risks today. As a Forbes publication explains, businesses that adopt to big data and cloud grow 53% faster than those that do not.