What’s It With Cloud Computing – Cut Costs

Wednesday, August 25, 2010, 8:54 AM | Leave Comment

If businesses of any size desire to cut their costs on using today’s latest and greatest technology, then one alternative – and a best one at that – can be cloud computing.

Big companies have presumably been riding the cloud bandwagon for sometime now.

It’s time that small businesses should follow the trend as well.

However, you must analyze your own particular situation whether or not you need cloud computing and how best it can be beneficial to your business in terms of ease, convenience and finances.

By adopting this relatively new thinking of computing, some companies have made mistakes because they did not do their homework in detail and went with the flow of the technology current.

On the surface, moving to the cloud seems like a can’t-lose deal. But if you have not thought things over, it so happens that the torrential rain from the cloud will ruin not only your concept of the technology but your finances as well. And you don’t want either to happen.


  • Existing hardware…

    Before you commit your business to cloud computing, think about your existing hardware and the software licenses you have already paid for or perhaps still paying on a monthly basis. You must make a plan to completely depreciate them before you make plans for the cloud, of course with the help of your accounting department.

  • Spell out your requirements before signing on the cloud…

    Most cloud computing have become quite generic like buying and selling real estate. For some unique requirements as a small business owner, for instance with payment-card industry regulations, you might face additional charges. So sit down with your accountants and go over the details of how much and for what the cloud cost would be.

  • Seasonal demands…

    For a retail business, Christmas and other holidays are usually demanding days. Figure out beforehand what the high-demand and the low-demand will cost you before you sign on the contract.

  • Make sure your existing software license is not a hindrance…

    Go over your existing software licenses. You must be out of them clear and square. Some software licenses prohibit the transfer of applications to a multiple-tenant environment. They might let you get out for a price.

  • Cloud offered by existing vendors may be better…

    Check with your incumbent vendor. If it offers cloud computing, it can turn out to be better for your business. You have already established good working relationships and may work with them satisfactorily in the future.

In a Nutshell
In the industry, there are two types of cloud computing offerings:
proprietary application program interface and a standardized interface. Try to avoid the proprietary one because it can sound trouble in future.

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