how can small and mid-sized businesses take advantage of cloud computing?

HOW CAN SMALL AND MID-SIZED BUSINESSES TAKE ADVANTAGE OF CLOUD COMPUTING?

300 W. Route 38, Moorestown, NJ 08057 800-496-8001 | www.milestechnologies.com This white paper was written by and is the property of Miles Technologies, Inc.


300 W. Route 38, Moorestown, NJ 08057 | 800-496-8001 | www.milestechnologies.com This white paper was written by and is the property of Miles Technologies, Inc.

t’s challenging to read any technical or business related publication

without seeing a reference to Cloud Computing. It sounds compelling,

but to appreciate Cloud Computing, businesses must understand the

value and the potential benefits. The challenge that exists for small

and mid-market businesses is finding someone that understands all of this

Cloud Computing language. Small businesses in particular are too busy

with day to day operations to dedicate staff members to understanding

trends in computing technology. After all, businesses will run most

effectively when they focus on what they do best.

In order to explain Cloud Computing, let’s start with an analogy to

electricity. A long time ago, businesses that required electricity purchased,

maintained and managed their own electricity generators. Substantial

capital expenditures were required to acquire this equipment, and

significant ongoing expenses were necessary to maintain the equipment.

In the early 20th century, along came electricity grids, which enabled utility

companies to generate electricity from central locations and distribute the

electricity to businesses and residents. It was a much more efficient

process because utility companies could invest in the power generation

equipment and charge reasonable fees to provide electricity because it

was being distributed to many end users. Therefore, the equipment, the

power and the costs are shared. Additionally, the end users of the

electricity only paid for what they consumed, and that is still the case

today.

Similarly, Cloud Computing incorporates many technology functions into

centralized hosting facilities. This includes the processing power of

servers, data storage, backup and disaster recovery, redundancy in power

and broadband internet connections, both physical and information

security, as well as application functionality and database processing. Like

the utility company generating and distributing electricity, these hosting

facilities provide all the computing processing power and application

functionality, and distribute it among many businesses. It is primarily

about pooling resources in a cooperative effort and sharing those

resources with many end users.

I

We’ll address these 3

key questions in detail:

1. Can small and mid-sized

businesses take

advantage of Cloud

Computing?

2. What are the benefits

of Cloud Computing?

3. Is my information secure

in a Cloud Computing

environment?

69% of online Americans use Cloud

Computing—services whose

functionality is located on the

web—such as webmail, data

storage, or online software

programs

Source: John B. Horrigan, Associate Director,

Pew Internet and American Life Project

(published September 12, 2008)



1. Can small and mid-sized business take advantage

of Cloud Computing?

The answer is a resounding YES! Cloud Computing is helpful for businesses

of all sizes. If anything, this model of shared, centralized computing is

even more beneficial for small to mid-market businesses.

2. What Are The Benefits of Cloud Computing?

Reduce Capital Expenditures

In a Cloud Computing environment, you will not need to invest in

the purchase of expensive servers and all of the software licensing

costs associated with enabling your servers to function.

Additionally, the need for capital expenses for onsite data center

facilities, physical security for the data center, redundant power,

climate control, and backup systems, is eliminated.

Reduced Power Consumption

By utilizing Cloud Computing, high energy-consuming equipment

like always-on servers and climate control are no longer needed.

These systems will typically work overtime to keep a room full of

electrical equipment at the correct temperature.

Save Physical Space

The need for less office space is a result of not having a physical

space or room dedicated to data center/server room operations.

This can provide cost savings and/or added efficiency. This can

also provide the opportunity for a business to expand without

purchasing or leasing a larger space.

Reduced Ongoing Support & Maintenance Costs

With less software, computer and network equipment under your

roof, you will spend significantly less time and money supporting

and maintaining a simplified network infrastructure. Whether a

business has internal IT staff or outsourced network

administration and support, this translates into ongoing cost

savings.

The key benefits of Cloud

Computing are:

Cost according to use and

savings because of lack of

wasted resources

Immediate availability

Round-the-clock availability

Scalability

Efficiency – enterprises can

focus on innovation and R&D

Resiliency – sustainability

through natural disasters or

heavy traffic.

Source: Net-Security.org (published

September 25, 2009)



2. What Are The Benefits of Cloud Computing? cont’d

Take Advantage of the Latest Technologies

A top-notch Cloud Computing service provider will continue to

invest in updated server technologies, network technology, power

redundancy, data redundancy, and software. These ongoing

investments by the service provider enable end users to benefit

from utilizing the latest technologies without having to incur the

associated expenses.

Ability to Access Applications and Data from Anywhere

Cloud Computing can make it easy for businesses to access their

applications and data from any computing device (to include

handhelds, tablets and thin clients) that is connected to the

internet. This portability in use of the company’s applications and

data enable the mobile workers, remote office workers, home

office workers and even the vacationing executive to easily and

quickly access the systems they need. Consider the productivity

boost this benefit could provide to your business.

More Time to Focus on Running Your Business!

Unless a business is providing IT services, its mission and

objectives most likely never included focusing on servers, backup

systems and data centers. The value in any business is directly

related to its ability to deliver its products and services to its

customers. The value in the personnel of small and mid-sized

businesses is their ability to deliver the products and services. By

utilizing Cloud Computing, any business can free up the valuable

time of their personnel to do what they do best!

1. Ease of use

2. Convenience

The two major reasons why

internet users that have

performed a Cloud

Computing activity use

Cloud Services

Source: John B. Horrigan, Associate

Director, Pew Internet and American Life

Project (published September 12, 2008)



Positive insights to the increased use and implementation of

Cloud Computing services in businesses

Source: Institute for Partner Education & Development (published 2010)

3. Is my information secure in a Cloud Computing

environment?

The simple answer is yes. Cloud Computing is structured in segmented

environments. Essentially, it’s like having multiple, separate networks

running within the hosting facility. Each network has secured access just

as the network in an office does.

Cloud service providers can have varying levels of servicing offerings and

of physical and network security. Thoroughly researching potential Cloud

service providers is essential to finding a suite of services and security that

best satisfies the needs of your business.

Diversify IT systems

Customer lack of knowledge

Add redundancy

Enable flexibility/scalability

Offload

Reduce implementation time

Limited requirement for…

Solution can be accessed…

Control/improve profit

Reduce IT CAPEX in favor of

Increase computing capacity

Provide competitive

Provide business continuity

25.0%

31.8%

35.5%

35.5%

40.9%

47.3%

48.2%

49.5%

50.5%

50.9%

51.4%

51.8%

57.3% Forty-one percent of Cloud users like being

able to access their information from

whatever computer they’re using

Source: John B. Horrigan, Associate Director, Pew

Internet and American Life Project (published September 12, 2008)



When interviewing potential Cloud Computing service providers,

be sure to ask the following questions:

• Do you guarantee a certain level of uptime in your

SLA (Service Level Agreement)?

• What type of recourse or remedy do I have if that guarantee is not met?

• Are my applications and data stored in a secure facility?

• What types of network security measures are utilized in your Cloud

environment?

• What types of backup are included with the service?

• Are the backups stored off-site?

• Does your facility have redundancy in internet connectivity and

electrical power as well as servers and network equipment, such as

switches and routers?

• What are the details of your disaster recovery plan?

By gathering the information above from potential Cloud service

providers, you put yourself in a position to make a wise decision in

utilizing Cloud Computing services.

The increased use of cloud computing technologies has created a new era

of business computing. Fortunately, this era brings with it many

advantages, specifically in the efficiencies it provides, which are

particularly poignant given today’s economic struggles. Cloud computing

allows businesses of all sizes to harness computing power that was

previously available only to very large, wealthy corporations. Small and

mid-size businesses are now able to save money and narrow the playing

field between themselves and their larger competitors with regard to

technological capabilities. By seizing Cloud Computing

opportunities,businesses give themselves an edge in a highly competitive

marketplace where customers are demanding better products and

services, faster delivery and lower prices.

IT execs cited three core benefits of using a

Cloud Computing activity: The ability to pay for just what you

need, the option to pay as you go, and the

potential to shift IT headcount and

expenses to the Cloud-service provider.

Source: Lance Whitney, Journalist, IT

Consultant, Web Developer (published January 21, 2010)



About Miles Technologies

Founded in 1997 and headquartered in Moorestown, New Jersey, Miles Technologies is the leader in providing

technology-based business solutions to small and medium-sized businesses. Miles Technologies has additional offices

throughout New Jersey, New York, Pennsylvania, Maryland, Washington, D.C. and Northern Virginia.

Miles Technologies provides solutions for information technology, custom software development, software selection

and implementation, computer forensics, information security, online marketing and public relations, and website

development.

Miles Technologies houses a full-service hosting facility providing a comprehensive suite of Cloud-based services.

For more information on Miles Technologies, please visit http://www.milestechnologies.com.

how can small and mid-sized businesses take advantage of cloud computing?

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