The Cloud: Why SMEs Stand To Gain Most

The business benefits of cloud computing are well known and have been intensively debated. The SME sector has been particularly quick to recognise the cost savings and greater operational efficiencies that can be achieved by running applications in the cloud.

Today, however, cloud computing is moving forward rapidly not just in terms of technological functionality but also with regard to the innovative uses to which it is being put. More and more SMEs are not only acknowledging the power of working in the cloud, but starting to build their own cloud applications, and closely customising them to their precise business needs.

Developers everywhere are using cloud-based platforms for business application development, creating applications like enterprise resource planning (ERP), human resource management (HRM), and supply chain management (SCM).

This kind of development can help small businesses and start-ups in particular to deliver speed and agility, streamline operations and reduce time to market, as well as improve customer engagement and success. Ultimately, this will enable these businesses to innovate and deliver a competitive advantage.

Speed to Market

For most start-ups, their earliest months and years as a business are their most difficult. Research indicates that over 50 percent of small businesses fail in the first year and 95 percent within the first five years. One of the most common pitfalls is a failure to embrace new technologies and harness them effectively to drive the business forward. In a fast-changing world, the most successful enterprises are those that see the potential of new business solutions to enable them to work more efficiently.

Today, a host of SMEs are making use of the latest cloud based application development platforms to quickly deliver mission-critical applications. This helps many small organisations dramatically reduce the upfront capital required to get the business on its feet and deliver early customer successes much faster than using traditional platforms.

Steve Garnett is chairman EMEA of  Salesforce.com

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