"Why SMEs need to understand Cloud Computing" with Mark Troselj

Cloud Computing is quickly becoming the norm, not the exception, however, as Mark Troselj explains SMEs need to clearly understand the benefits of moving to the cloud. For a growing business, cloud technology makes a lot of sense, Mark Troselj explains why.




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Transcript


You’ve got to start thinking about Cloud Computing very differently to how you think about on premise software and normal business applications. For small business, that is up to 10 or 20 people, even up to 50 people is still considered a small business by global standards, what you're looking at is in order to run a business, you have a lot of the same complexities that multi-national organizations have. You still have to pay people, you still have inventory, you still have to do assembly or manufacturing, you still want to provide a service, you're still got books to keep, you’ve still got a warehouse, you might want to manage your financials, you’ve got your CRM, your customers, you want to have an ecommerce website; all of those things, that complexities about running a business is till there, but what you want to do as a small to medium business to you actually don’t want to do that. You want to take your product, solution, or service and you want to take that to the market.


That’s the fundamental difference with Cloud Computing, that its not, in a case of NetSuite, the 16,000 organizations that use it. Its not 16,000 individual instances. It’s not 16,000 instances of hardware and IT and infrastructure and server room and backup and recovery and compliance; it’s one instance. Its one global instance and so that was the original design of Cloud Computing from NetSuite and Larry Ellison from 14 years ago. It’s to take all of that power, all the ability to run complex businesses, and take that down so that instead of having the requirement whereby you need this entire infrastructure and this entire grunt and expertise that a small business can simply log in, customize and configure as they need to and then run their business. As they grow and expand, if they want multicurrency, if they want multiple languages, if they want ecommerce, if they want to do inventory and logistics and partners, all of that still runs on a single application. You subscribe to that and you build your business out with that.


You no longer sit in there and say ‘I'm adding five employees, I need another server, I need to buy a different software package, I need to go and buy an ecommerce and bolt that on, now I need a billing engine to bill my customer,’ and suddenly our small business has grown from five or ten people to 50, has now got 10 different applications that’s trying to integrate and run, its got expertise, its got consultants coming in all over the place, its got multiple databases; those days are gone. That’s the on premise world we created over the last 20 or 30 years. The last five to ten years has move to Cloud Computing for that exact reason. I would challenge anybody in that era to come to me and prove that they think that doing that is more cost effective than having a business run on Cloud Computing.



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