How the Cloud Levels the Playing Field for Small Businesses
For small business competing against much larger companies, the internet has done wonders for leveling the playing field.
Small businesses can now access markets they could never have penetrated before the internet. Geographical advantages and large budgets to build distribution points retail or otherwise no longer present barriers to market entry.
Similarly, cloud computing breakthroughs now offer even more opportunities for small businesses. Before the cloud, the expense of an in-house IT infrastructure hardware, software, upgrades and labor created capital expenses and high fixed costs out of reach for most small firms.
Today, because of advances in cloud technology, small firms can be part of the large aggregated IT infrastructure and benefit from the economies of scale that previously only benefited large firms.
How does the cloud help small businesses?
First, Big capital expenses. No matter how minimal your business’s technology needs, a certain amount of your business is totally reliant on technology. Systems fail, and no business can afford to be offline. That means spending money for expensive mirrored servers and other redundant hardware.
Second, small businesses that experience cyclical sales peaks may end up having expensive, unused capacity for parts of the year. Also, small firms may be unable to ramp up quickly to meet new demands and opportunities and therefore leave money on the table. IT expansion takes time, planning and immediate cash.
Third, there is labor. Small firms cannot benefit from economies of scale when it comes to IT labor support. Clearly, everyone needs 24/7 support, but to maintain that level of staffing would mean IT labor resources go unused, as they sit waiting for a disaster.
In conclusion, the traditional IT model doesn’t work well for small businesses. However, the cloud has changed that completely. Now, even the smallest business can have a complete, backed up and redundant IT infrastructure with 24/7 support. By moving to the cloud, all of those capex and labor expenditures are shared among thousands of small to large businesses. Economies of scale mean lower costs for the small business owner, an opportunity that never existed until the cloud.
In the end, the cloud creates a disrupting model that allows the small business to benefit from all the advantages of available technology without the cost barriers of in-house IT support. Before the cloud, only large established firms with deep pockets could afford the infrastructure. Now anyone can enter the market.
Chicago Cloud Services from BKS Systems
As a managed IT provider, BKS Systems take the difficulty out of setting up and migrating to the cloud and lets small businesses focus on what they do best — taking care of customers or clients. Our IT professionals have done the research on cloud services and we offer a variety of synching, storage and backup services.
If your small business isn’t ready to commit fully to being cloud-based, BKS Systems offers hybrid solutions allowing you to use both the cloud and hardware onsite. However, give it a try and we think you might like it. We can backup, file sync, and give you mobile access with a number of our cloud solutions.
Contact us today to discuss how to move your business to the cloud.