In a previous post, I offered an updated definition of cloud computing. In short, cloud computing refers to the use of Internet-based services to support various business processes in real time. In practical terms, cloud computing allows small businesses to remotely manage and store information, and access customized software or services from any device featuring Internet access.

 

Though the concept of cloud computing started generating a buzz in 2009, the majority of small businesses have been reluctant to make the switch from desktop and in-house equipment and services. But that may soon change. According to Ray Boggs, vice president of SMB research for IDC, companies with 100 or fewer employees are expected to spend $2.4 billion on Cloud Computing services this year. This constitutes a considerable increase over last year’s $1.7 billion.

There is a lot to be said for commercial- based cloud computing. Cloud-based services can help small businesses significantly reduce their software and hardware computing costs. This includes a reduction in power bills and the costs for maintaining and upgrading hardware. Cloud computing also allows for easier collaboration with workers and clients from remote locations. Finally, the software and services accessed via the cloud are typically upgraded with the latest improvements in functionality.

Small business can utilize cloud computing in several vital areas: Small business SaaS applications often involve customer relationship management, human resource management, finance and accounting programs, and document collaboration. Cloud computing is ideal for these purposes. Through the use of online storage services, small businesses can also boost their storage capacity and create online backup and archiving accounts. And perhaps the most ubiquitous of commercial usage is the online office suite with collaboration tools which allows for remote access information sharing, editing, and storage.

For those small business owners who are just now looking into cloud computing services for their business, there are several popular options to choose from. For starters:

Google Apps. Google Apps provides a custom email address, tools for word processing, spreadsheets and presentations, a shared calendaring system and access to a flexible intranet system. This software package is especially beneficial for small businesses involved in business travel, remote collaboration, or any form of project management.

Microsoft Web Apps. Microsoft has entered the cloud computing fray with its suite of enterprise-grade e-mail communications, Web videoconferencing, CRM and collaboration solutions

Zoho.com. Zoho is another richly featured, web-based office suite

Infusion CRM. A comprehensive CRM solution that supports online shopping carts and sales transactions, auto-responders, product information, customer details, order history, payment plans, lead tracking and progression, and Skype CRM integration.

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