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How can Cloud-Based Software Benefit Small and Medium Enterprises?

29 Jul, 2021 | Business Tips, Inventory Management, Top 10

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Cloud computing is an essential component of the SaaS industry that is already multibillion today. As per the reports of Data Science Central, the global SaaS market had a net value of US$23.88 bn in 2014. 

The figure is expected to rise at a CAGR of 27.9% beginning from 2015 and reaching US$164.29 bn by the year 2022. Cloud computing is expanding fast and vast.

The growth in the cloud services industry is attributed to its benefits over traditional storage media. Before the cloud computing era, applications and programs were downloaded and retrieved from a physical computer or server. 

Cloud computing helps you store and retrieve the same kind of applications and programs directly from the internet. It is known for its efficiency, cost-effectiveness, and flexibility.

What is Cloud-based Software?

Cloud-based software (also known as cloud computing) refers to applications, on-demand services, storage, computer networks, or other accessed resources using an internet connection through another provider’s shared cloud computing framework.

The simplest way to understand cloud computing is by comparing it to electricity. Your home and business have it, but it doesn’t require a power plant on your property to use it. You connect to the one that is providing electricity to your area.

Read more: 7 Benefits of Cloud Inventory Management

Why Should Your Small Medium Enterprise Move to a Cloud Based System?

A greater number of SMEs in London are adopting cloud based solutions. Cloud adoption among UK firms has reached up to 88% due to its capacity to minimize IT costs along with improving flexibility, enhancing security, and streamlining operations. It is expected that by 2020, over 83% of business workloads will run in the cloud.

Today, SMEs rely on IT infrastructure to improve the running of the business. But, IT departments are expensive, hardware cumbersome, and software soon becomes outdated and requires upgrading. Traditional IT systems are not providing optimum performance. 

Plus, 49% of IT managers have a specific role in driving the business forward, but the majority of IT departments are seen as a bucket hole. Investing in office-based technology is a paradox that SMEs cannot afford to risk.

On the other hand, cloud computing provides solutions that SMEs cannot afford to ignore.

Benefits of Cloud Based Services for SME Business

The cloud has opened many doors in the small business sector and provides massive information processing tasks. The five most significant ways how companies can benefit from using cloud based technology are as follows:

Scaling Infrastructure

Cloud-based infrastructure scaling is one of the fastest-growing apps of cloud technology today.

For instance, web-based commerce has inherently unpredictable server loads, and its unexpected spike carries the potential to overload traditional servers, cutting off the customers’ access at the most critical moment.

By scaling the cloud-hosted infrastructure, failover systems automatically kick in if the host server is overloaded.

Cloud-based data infrastructure is inexpensive, efficient, and responsive to demand. By paying only for the server load, your costs for data management would scale with use, offering the most economical solution for small businesses.

The technology has made paying for massive local server space almost an obsolete practice.

Cloud-based Office Systems

Today, nearly every business is exploring collaborative work environments. Cloud based platforms for offices like Google’s G-Suite and Microsoft Office 365 provide better support for group-based projects than traditional programs. It allows multiple users to work simultaneously, with the changes reflected in real-time across an unlimited number of devices. 

“Living documents” on cloud-based office systems reflects all the changes instantly with a fundamental shift in collaboration between employees.

The digital workplaces significantly reduce the responsibilities of IT professionals in infrastructure management, freeing up resources and time for big picture projects like data analysis. 

If your business still emails document files back and forth, then transitioning to a platform such as G-suite can significantly improve its efficiency.

Big Data Analytics

Cloud computing offers SMEs the processing power necessary to organize and use large quantities of data. Most SME owners overestimate the technical challenges associated with big data analytics, but the effort put forth is all worth it.

The ability to choose based on deep customer data offers various benefits, such as delivering more relevant information to the customer base more timely or adjusting to your customers’ needs and wants in real-time.

Many companies are shifting their focus to user-friendly data interfaces, bypassing various costs associated with analyzing large quantities of information. Open-source platforms like Hadoop and HPCC put such tools in the hands of SMEs and facilitate cloud-based computing to handle the heavy lifting.

Experts always recommend around 500 Mbps for constant cloud-based computing. It enables SMEs to invest in faster internet speeds than relatively inefficient investments in server capacity and hardware, saving money in the long run.

Remote Workspaces

Cloud-based offices drive location-independent office environments. Collaborating over cloud services allows employees the flexibility and support of working remotely or continuing projects while away on trips or conferences.

Other cloud-based services like Skype keep lines of communication open between collaborating managers and groups. 

Telecommuters help SMEs circumvent many costs associated with brick-and-mortar workspaces. Cloud technology breaks down social barriers for individuals with small children or a disability to provide a foundation for a more inclusive workforce.

Backups and Recovery

Information security is a major hurdle for SMEs. Threats evolve quickly, and a defense of critical infrastructure is beyond the capabilities of a small IT workforce. 

As per the survey conducted by Better Business Bureau in 2017, only 35% of businesses said that they remained profitable for more than three months if they lost access to critical data.

Cloud-based data storage helps you address security concerns by building redundancy into a company’s information management approach. 

Hybrid systems backing up local data to the cloud in real-time offer protection against security breaches and allow companies to reduce their reliance on physical infrastructure and mental backups.

Read more: Get a Sneak Peek of DEAR’s Cloud ERP Manufacturing Module

Transform Your Business with DEAR Systems Cloud-based Software

Running a business can be stressful. Having the information at your fingertips is vital in today’s world, and it could be a turning point in your business for expanding and growing to new heights. While cloud-based software benefits your SME in many ways, the above are some of the biggest advantages.

Cloud-based inventory management software solutions such as DEAR systems can be accessed on various devices and anywhere through an internet connection. Comparing to in-house systems, it provides a business with unique benefits like – 

  • Allows you to monitor all inventory operations from any location and device and strategize your decisions accordingly. 
  • Allows employees of one store in one area to access or update inventory data of another store in a different region in real-time using your devices. It eliminates manual data transmission delays that may happen if in-house server systems are utilized in other stores.

DEAR’s Cloud-based inventory software will help your SME streamline the costs, improve the service, and expand the business. For more information about our software Contact Us or Get Free 14-Days Access

 

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