Many budding entrepreneurs start with big dreams in mind and small capital in hand. During the early stages of an enterprise, entrepreneurs have to mainly focus on the product or services they are offering to grow the business. As the business grows and the need to keep track of various things like sales, purchase, inventory, accounts arise, the need for IT infrastructure (hardware, software and applications) kicks in. With scarce capital, enterprises have to strike a balance between investing in growing the business and investing in IT infrastructure to run the existing one. Its always been an either/or situation. With the maturity of cloud technologies, enterprise now have an option to grow their business without compromising on their IT needs.
Cloud service like IaaS (Infrastructure as service) eliminates the need to buy IT resources (like servers) and the cost is proportional to the size of service usage. A startup enterprise can use IaaS to reduce the IT infrastructure cost .IaaS can be a single host to business applications built on different platforms/ technologies and hence reduces the effort on IT management. Cloud services can easily scale up the resource (say storage) capacity as an enterprise begins to grow. Also, Cloud services can be accessed from any location and this can be useful for global expansion of the enterprise. Still cloud has challenges for entrepreneurs too.
Enterprise data/applications in a third party cloud can be vulnerable to security threats which can come from other users or even from the cloud vendors. They may have hidden charges in their contracts which add extra cost to the business. Lack of standards for cloud usage within the enterprise can result in scenarios like duplication of data. A cloud computing strategy that chooses the right vendor and defines guidelines for cloud usage can make an entrepreneur’s life easier.