What are the main reasons why SMEs and start-ups use cloud computing?

Cloud Computing is a new generation of technology that is widely used today. Many companies are developing technologies that are changing the perspective of business, it is a type of Internet-based computing where various services are delivered to an organization’s computer through the Internet. In addition, there are numerous definitions for cloud computing, such as computers for rent on the Internet, virtualized servers, storage in the sky, etc. Instead of using local servers or personal devices to handle applications, it involves sharing computing resources.

no need to build individual servers or built data center space, or software licenses, etc. In addition, entrepreneurs must pay for the cloud service based on usage similar to electricity. There are no capital expenditures in the case. So, cloud computing is basically on-demand computing power, which is as uniformly available as electricity.

There are three layers:

*Software as a Service (SaaS): SaaS refers to software that is deployed over the Internet. For example, Dropbox, Gmail are SaaS. The services offered are paid in kind. For example, Google apps for business can only be used by paying for the service. SaaS are applications that are consumed by users. The most popular SaaS business tool is Salesforce.com, which is an enterprise CRM application.

* Platform as a Service (PaaS): PaaS is one level below SaaS that serves as a computing platform or solution stack as a service. Entrepreneurs must implement the solution stack on top of the application software. The solution stack would comprise a managed database and the operating system would be loaded into it. It also consists of runtime environments for different programming languages.

* Infrastructure as a Service (IaaS): Refers to virtualized IT infrastructure as a service. These included virtualization, servers, network, and storage. The most popular IaaS are Amazon Web Service and Rackspace.

The following are the reasons why SMEs and startups

* No Capital Expenditures and Pay As You Go: Cloud computing incurs no capital expenditures and is available as a “pay as you go” service. SMBs and start-ups just need to sign up for the cloud service and use the computing power and pay the bill. Therefore, no investment is required regarding data center resources, servers, licenses, etc.

* Elastic capacity: Elastic capacity refers to adding or removing servers that host applications when necessary. The elastic capacity helps to handle any load and also helps to increase the computational power to support the load.

* Self-service: Cloud computing is very API driven and self-service oriented. No orientation or infrastructure is required to understand cloud computing.

* Automation: A startup can automate many processes to maintain an application. For example, in any technology company, any application is first deployed to the development environment, then to the test environment, and then to the production environment. The application can work effectively if all three environments are automated

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