The evidence for the Cloud’s effect on existing businesses is clear, offering flexibility, accessibilityas well as being resistant to obsolescence, both in terms of the subscription model commonly used, as well as the fact that requirements can be augmented easily. A new survey has however found that the cloud is benefiting start-up companies too.
The study confirmed that cost savings were one of the main advantages of the cloud, however it also spurred innovation, laying the foundations for entrepreneurs to flourish. Around two thirds of those executives surveyed agreed that “cloud computing is a key factor in the recent boom of entrepreneurs and start-ups,” with a quarter agreeing strongly with the statement.
Of those surveys, it is interesting to note that 43% had started their businesses within the past three years. Over half of those respondents who had start-up businesses stated that the cost of on-site servers was prohibitively expensive and that in fact the Cloud facilitated their initial business launch.
A Start-up Boost
The importance of the Cloud’s role in the initial stages of business growth cannot be underestimated. Many entrepreneurs will need capital to get started, whether it’s investing in R&D or investing in staff or premises. Previously, an additional requirement would have been the acquisition of an on-site IT infrastructure (particularly for service-based or online-retail business models) which runs the risk of becoming obsolete, is relatively inelastic, not to mention being costly. Cloud services such as managed hosting reduces the need to spend on such things, thus giving start-ups a considerable boost.
The inelasticity of legacy infrastructures also hinders start-ups from experiencing trouble-free growth. In an era of widespread social media use, the potential for sudden growth is not only more probable, but more unpredictable. The cloud can accommodate for this sort of growth, giving companies the server capacity they need, when they need it.
Taking all this into account, it is quite possible that we will see an unprecedented growth in small businesses. Many hope that this will mitigate the effect of job will help alleviate the economic downturn.
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