Cloud computing brings global opportunities for small businesses

Starting Small to Medium Enterprises (SMEs) has become easier and more economically feasible on both technical and productive aspects, unlike the case several years ago where these companies used to pay a fortune to build the IT infrastructure.
Cloud computing technologies have helped in reducing some expenses and eradicating others that are paid by these companies.
For instance, these companies will not need server hardware for e-mail, productivity applications and databases or even devices operating systems. Therefore, companies using cloud computing technologies now have great competitive market opportunities that might become a vital factor for their success in financial resources management and providing innovative products and services to their customers.
Moreover, cloud computing technology enables companies’ immediate expansion in terms of adding or reducing computing capacities according to their need, which makes the management of technical resources more effective.
This also provides an opportunity for existing companies that have previously invested in building their technical infrastructure, to expand and add new and innovative services to their range.
This allows them to take advantage of their past investments and strategically plan gradual transformation toward cloud computing services.
Cloud computing services can be divided into three groups; the first is providing software as a service (SaaS) such as e-mail services, productivity applications, databases and customer service programs.
The second group includes providing platforms as a service (Paas).
For example, Windows operating system and other platforms can be provided as a service for developers, specialized software owners and software development firms (called Windows Azure).
Lastly, the third group includes providing infrastructure as a service, such as providing server hosting and data storage services through cloud computing centers, where the customer no longer needs to buy servers or data storage devices at their buildings and can rent it remotely instead.
These cloud services cater to the needs of the majority of users and contribute in speeding up the delivery of technical projects as they have all the basic and advanced services.
These services also provide various creative applications, such as artificial intelligence and self-learning programs for security, safety and privacy of information services.
This technical model was based on an economic vision aimed at building infrastructure for common services that can be shared by everyone, whilst reducing the cost for users, compared with the other economic model where companies invest individually in the provision of these services at 10 times higher cost.
Cloud services promote the company employees’ mobility and their ability to access all computer services from any location connected to the Internet, anytime, and with a high level of security, confidentiality and privacy.
This highly contributes to the productivity of these companies.
For example, it is estimated that 1.3 billion employees will be working on the go by the end of this year which accounts for 37 percent of the total workforce and an increase of 300 million employees compared to 2010.
More than 27 percent of SMEs work on an international level compared with 16 percent in 2010.
More than 31 percent of SMEs expect the presence of redundant data across multiple user devices, which means wasting time in synchronizing various data between those devices and losing large capacities in order to store that data.
Forty-five percent of companies believe that their employees are showing greater effectiveness and performance in a specific period of time due to cloud computing and mobile devices technologies, while 34 percent of companies confirm that cloud computing technologies enable employees to work better in a team.
In terms of flexibility, 35 percent of companies using cloud technologies achieved 15 percent more profits than other companies, with a sharp increase in the speed of job creation.
Regarding productivity programs provided as a service through cloud computing, users can rely on cloud office program suites such as “Office 365” to convert their offices into a paperless environment, using the office software from any fixed or mobile device connected to the Internet.
Built-in communication programs in Office 365 can be used to connect with customers in many countries in order to complete transactions, discuss various projects and even conduct meetings and training seminars online, without the need to travel and waste time on visa processing, airport procedures and any associated expenses related to transportation and accommodation.
Moreover, cloud computing services provide innovative new services that are not available in traditional information centers, from unlimited data storage, exchange and transfer of data securely between parties, to cloud computing platform programs like Windows Azure.
These cloud services help reduce the licensing costs dramatically, build corporate cloud databases, provide corporate e-mail hosting services as well as electronic payment portals that facilitate mobile e-commerce for SMEs they are also capable to facilitate huge data analysis systems called “Business Intelligence” specialized in analyzing customer usage trends which helps in adjusting business strategies and create some smarter opportunities at a faster rate.
Despite the fact that many cloud services are not new, this year in particular has proved that SMEs are able to use these technologies very quickly and at a low cost.
In return they get benefits at high speeds (such as boosting performance and productivity levels), and efficiently compete in the local and international markets alongside large companies, especially with the high penetration rates of mobile devices with staff and users.
The technology sector is witnessing a prominent leap this year with the launch of “Windows 10” operating system on mobile phones, the unified work environment it provides among mobile devices and desktop computers and the compliance of applications with any device regardless of the work environment, which will significantly enhance efficiency and data security at work.
Both the present and the future rely on adopting these technologies by the SME sector, as these enterprises have a key impact in the development of this sector and enhancing its competitiveness and reach to large segments of customers locally and globally, with economical and more affordable costs for establishing and operation.
In addition, innovative services such as data analysis to identify user buying and use habits to provide the optimum customized experience for clients, will result in higher efficiency in the services offered by these companies, greater competiveness with global major companies and a quicker deployment of services and products to consumers.

Mamdouh Najjar is national technology officer at Microsoft Arabia.