What is Cloud Computing? 6 Benefits of Cloud for SME Businesses

The system that helps SME entrepreneurs access business management software is cloud computing. But what is cloud computing, and how does it benefit SME businesses?

Every business, regardless of size, needs an ERP system (Enterprise Resource Planning), a business management system that significantly streamlines operations. However, traditional ERP systems, which are installed on local computers, come with high costs, including maintenance and server management fees. These costs can make it impractical for small and medium-sized businesses (SMEs) to invest in such systems. Nowadays, there’s a new system that enables SMEs to access business management software: cloud computing. So, what is cloud computing, and how does it benefit SMEs? This article has the answers.

What is Cloud Computing?

Cloud computing provides various services such as applications, software, or resource management through remote server access via the internet.

What are the Types of Cloud Computing?

• Public Cloud: Public cloud services are available over the internet and can be shared among multiple organizations.
• Private Cloud: A private cloud is dedicated to a single organization, allowing greater control, customization, and security, though it comes with higher costs, similar to on-premise systems that require installation on hardware.
• Hybrid Cloud: A combination of public and private clouds, enabling data and application sharing between the two environments.

What are the Types of Cloud Services?

Cloud services come in various forms, depending on business needs. Here are some popular types:

1. Infrastructure as a Service (IaaS): IaaS offers organizations cloud infrastructure services, such as computing, storage, and networking, accessible via the internet and adjustable as needed.
2. Platform as a Service (PaaS): PaaS provides a cloud platform that allows clients to develop and manage applications without needing to handle the infrastructure.
3. Software as a Service (SaaS): SaaS is a cloud-based software platform that is accessed via the internet, maintained by service providers, and typically used on a subscription basis.

What Are the Benefits of Cloud Computing for Businesses?

Cloud computing benefits businesses of all sizes, particularly SMEs, by improving efficiency, speeding up processes, and reducing costs. The overall benefits of cloud computing include:

1. Cost Savings

With cloud computing, there’s no need for hardware installation or maintenance costs. Businesses can use existing devices like laptops, phones, and tablets to access the cloud, significantly reducing overhead expenses.

2. Access Anywhere, Anytime

With just a phone, business data can be accessed via the cloud, ensuring up-to-date information is available anywhere, anytime.

3. Flexibility and Scalability

Cloud computing allows organizations to adjust resources as needed, supporting business growth. For example, inventory systems can expand as required.

4. Efficient Collaboration

Since cloud systems are accessible from anywhere with an internet connection, teams can collaborate efficiently without needing to be in the office.

5. Comprehensive Security

Cloud services offer data encryption and regular access monitoring, ensuring that not everyone can access sensitive organizational information.

6. Data Loss Prevention

Many cloud services provide data recovery functions or backups to protect important business information from being lost, even with careful management.

Treesoft.io offers cloud-based ERP software with over 10 applications for comprehensive business management, including POS systems, purchasing software, online accounting software, inventory management software, and HR software. Businesses can sign up for a free 14-day trial, making it ideal for SMEs of all sizes.