Drivers behind rising cloud adoption rates

Drivers behind rising cloud adoption rates

rising cloud adoption ratesCloud computing adoption is on the rise if you believe Gartner, Forrester or the Wall Street Journal, or just about anyone else who publishes information about business trends.  One of the major drivers behind rising cloud adoption rates is the fact that cloud computing and the SaaS market have opened the doors to CRM, ERP, and other enterprise software to small businesses who couldn’t afford the data centers and licensing of on premise systems in the past.

Softwarethinktank.com has an article discussing a few reasons this is important and why ERP cloud solutions and the like are so attractive to small businesses.  Here are three of the freshest reasons.

Rapid Deployment—For most SMBs there just aren’t enough available man hours to implement a large scale on-premise system.  With cloud computing, systems are up and running much faster which means a much shorter time to value and less money spent getting off the ground.

Lower and Predictable Costs—Much has been written about the cost saving potential of cloud based enterprise software stemming from low initial deployment cost, reduced IT payroll and energy savings.  But one of the things we hear less about is that with the clear pricing model of SaaS, there are fewer surprise costs than with an on-premise.

Capex Free—While purchasing servers and everything else you need to make an on-premise system work gets treated as a capital expense, software as a service gets filed under operational expense.  IT managers like this because it requires less justification and makes everyone look good.

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