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Ray DePena

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SMB Cloud: Blog Post

Why is the Cloud Needed for Small Businesses?

Cloud Computing Benefits for SMBs

Good overview of the benefits of Cloud Computing for SMBs via

Various analysts predict that if cloud computing offers benefits to enterprise IT departments, then it is an absolute boon to small and midsize companies. Instead of making do with a small, under resourced IT staff trying to emulate the productivity of IT outfits with multimillion-dollar budgets, smaller companies can now access enterprise-class technology with low up-front costs and easy scalability.

The Benefits of Cloud Computing for SMBs

Cloud computing is fast evolving from a futuristic technology into a commercially viable alternative for companies in search of a cost-effective storage and server solution. The benefits of the technology are-
1.    Scalability: Cloud-computing follows a utility model in which service costs are based on consumption, companies pay for only what they use, saving organizations money.
2.    Increased Storage: Organizations can store more data than on private computer systems.
3.    Easy execution: a company can get its cloud-computing arrangement off the ground in record time and for a fraction of the cost of an on-premise solution.
4.    Skilled Practitioners: In the case of cloud computing, vendors are reputable and can offer customers reliable service with endless amounts of storage and computing capacity. These vendors include Microsoft, Google, IBM, Yahoo and Amazon.
5.    Service Quality: Network outages can send an IT department scrambling for answers.
6.    Flexibility: Cloud computing offers much more flexibility than past computing methods.
7.    More Mobility: Employees can access information wherever they are, rather than having to remain at their desks.
8.    Allows IT to Shift Focus: No longer having to worry about constant server updates and other computing issues, government organizations will be free to concentrate on innovation.
9.    Highly Automated: No longer do IT personnels need to worry about keeping software up to date.
10.    Frees Up Internal Resources: By placing storage and server needs in the hands of an outsourcer, a company essentially shifts the burden placed on its in-house IT team to a third-party provider. So that, in-house IT departments can focus on business-critical tasks without having to incur additional costs in manpower and training.


The above benefits may not be relevant to big companies, but they are to SMBs. While large enterprises typically use the cloud for infrastructural services such as storage, SMBs are more likely to plug into the cloud for day-to-day productivity applications. In fact, as cloud computing matures, you will see small companies rely on the cloud for more and more of their technology needs, gradually  eschewing the costs and complexity of in house IT infrastructure.

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Ray DePena worked at IBM for over 12 years in various senior global roles in managed hosting sales, services sales, global marketing programs (business innovation), marketing management, partner management, and global business development.
His background includes software development, computer networking, systems engineering, and IT project management. He holds an MBA in Information Systems, Marketing, and International Business from New York University’s Stern School of Business, and a BBA in Computer Systems from the City University of New York at Baruch College.

Named one of the World's 30 Most Influential Cloud Computing Bloggers in 2009, Top 50 Bloggers on Cloud Computing in 2010, and Top 100 Bloggers on Cloud Computing in 2011, he is the Founder and Editor of Journal,Competitive Business Innovation Journal,and Journal.

He currently serves as an Industry Advisor for the Higher Education Sector on a National Science Foundation Initiative on Computational Thinking. Born and raised in New York City, Mr. DePena now lives in northern California. He can be followed on:

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