Saturday, 30 July 2011

Cloud is going to do for operations what the web did for marketing.

The growing capability of cloud software as a service.(SAAS) functionality is looking to change the business models of many small medium enterprises and particularly micro businesses. The web enabled anyone to market to the world where previously only large companies could market with substantial budgets. It has revolutionised marketing and sales over the last 10 years making small businesses able to compete in markets where years ago it would have been impossible.

Cloud is going to do for operations what the web did for marketing.

When you have an idea and uptake could be slow it takes a brave entrepreneur to fork out for expensive software and supporting infrastructure; raising fixed costs and automatically creating as a result high take up to hit the break even point. Many have shrunk back from this and how many good ideas have not developed due to high initial investment costs?

With many SAAS offerings a "freemium" approach is used for low volumes so it is low on up front cost to start trading in a certain way and really good to "just see how it goes".

I think this is going to be a serious stimulant for innovation and the development of smaller businesses.

Cloud is going to revolutionise many business models and create those that historically would never have got of the "fag packet".

It will particularly assist part time business and lifestyle ventures as these low volume options previously could not be sustainable and reduce the risk of start up operations.

Costs bases will be more aligned to variable costs and the costs therefore flexible with the ability to expand or contract due to changes in volume. Scalability both up and down is the benefit.

So cloud is more than just another I.T.fad its going to make some serious waves in business design land.

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