Top ten IT strategies for SMEs, number one: The Cloud

SMEs can punch above their weight with the right technologies but IT is often seen as a black art. So over the next week or so we will feature 10 technologies on the blog.

Computer Weekly correspondent Kathleen Hall put this together. We naturally start this series of ten blog posts with one about the cloud as it is the biggest buzz in IT.

THE CLOUD

Some think companies in the SME sector should be the pioneers of the cloud rather than large corporates.

Buying products as a service rather than having to make big capital investments can give smaller businesses access to enterprise solutions otherwise only available to larger companies. And there aren’t many business applications that can’t be run through the cloud these days.

MedicAnimal, an online vet supplier has saved around £10,000 a year by moving its servers into Rackspace’s Cloud Servers. “We were growing 40% month-on-month when we first started. Eventually we found that investing in hardware was becoming an exercise in catching up rather than planning for growth,” said Ivan Retzignac, founder and MD.

Instead of having to pay a huge amount up front, Retzignac opted for £1,500 a month contract, which also meant he didn’t have to worry about additional housing and maintenance costs.

Retzignac doesn’t believe expenditure on infrastructure is a good business investment. “It’s not an asset worth putting into from a business point of view, as it depreciates so quickly. And you have to replace it regularly anyway. The idea of having to own something is a really primitive way of thinking. For me, having the technology physically there doesn’t make me feel secure – it makes me more uneasy.”

If you want to see Kathleen’s top ten article click here.

 

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