Cloud Computing for Start Ups

For entrepreneurs who have a relatively small business, cloud computing is an effective solution to optimize server capacity. According to the May 2009 report by Forrester Research, only about 2 % of businesses which have an employee number of less than 100 uses cloud computing. While the percentage is low, cloud computing is easily becoming more in demand as entrepreneurs offer internet-based services. In order to understand why it is fast gaining popularity among small business owners, you would need to know the basics of cloud computing to appreciate what it can do for your business.


Entrepreneurs who are in the IT industry who employ only a handful of employees usually just outsource hosting applications to an off-shore facility. This proves to be more expensive however. By definition, cloud computing makes use of the excess server capacity of specialized providers. Technically, you would still be outsourcing hosting applications but this time, you would only be paying for the server capacity you need in a specific time although you would need to give out information such as some intellectual property, your lists of customers, and even proprietary applications.

Apart from hosting applications, cloud computing also works for entrepreneurs to sell services for their virtual companies. For those who are thinking of setting up a start up business in the IT industry, cloud computing may yet be the best option. The only factor that seems to be a hindrance is that most entrepreneurs are not yet aware what cloud computing can do for their business and therefore cannot possibly understand how it can help boost their performance.