Cloud Computing Benefits

Cloud computing- a ‘trendy’ term that to many, may still sound a bit vague, but once it’s value is understood in its entirety, it is really not so ambiguous.

A recent article from EurActiv, simply defines cloud computing as a term based on the principle that users do not usually own the physical infrastructure which hosts applications and software. Keeping that in mind, cloud computing comes into focus when thinking about what IT always needs: a way to augment capacity or add capabilities on demand without investing in new infrastructure, personnel, or software. Cloud computing includes any subscription-based or pay-per-use service that can expand IT's existing capabilities in real time, over the Internet.

Viviane Reding, EU Information Society Commissioner advised SMBs that cloud computing services are the cure needed for the current economic downturn. She strongly believes that cloud computing services can increase business productivity by changing from fixed costs (i.e. hiring staff or buying PCs) to variable costs (i.e. you only pay for what you use).

During her speech, Reding highlighted some very valuable points. In Europe, there are 23 million SMBs, making up to 99% of all of their firms. However, SMBs continue to fall behind in the use of ICT tools that can enhance overall productivity.  It was estimated that a million new jobs could be created simply by relocating office activities to the cloud. This can potentially add up to 0.2% to Europe’s annual GDP within the next five years.   

With cloud computing uncertainty to the side, SMBs worldwide are clearly encouraged to leverage web-based services to begin to overcome the global recession. 

So what are you waiting for?

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