Why cloud computing makes sense for expanding tech start-ups

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Why cloud computing makes sense for expanding tech start-ups

With cloud computing ranking as one of the top recent business trends, many different companies all over the country are likely considering whether it makes sense to switch from privately run servers to remotely managed third-party networks.

Still, some companies might simply not have the resources to shift all their data operations at this point in time, while others may want to get more mileage out of their existing network infrastructure before making the switch.

Nonetheless, cloud computing has been shown to enhance business productivity, and as such, there are several types of businesses in the marketplace that could derive benefits from adopting managed IT services for their daily operations.

An article published by INC.com in 2009 suggests that blossoming tech start-ups could gain from cloud services because their data load could markedly increase extremely quickly.

For example, the article cited one example of a California air travel start-up called Fly Miwok, an air-taxi company based in Southern California, that had plans to quickly expand operations to the East Coast and Midwest. However, doing so would have required Fly Miwok to invest in software and hardware infrastructure that would allow it to accommodate the far larger data stream it was likely to accrue by branching out into new geographic regions.

If FlyMiwork attempted to manage this data internally, the article mentions that the company would have had to invest in an entirely new data center with at least 10 servers and other technical equipment. Fly Miwok would have also needed to hire new employees to operate and maintain the technology, yielding overall expansion costs of more than $250,000 in addition to facility costs.

However, by outsourcing that data to a managed IT service, FlyMiwok pays only 80 cents an hour for each server, or an annual payout of roughly $28,000.

This example indicates the significant economic benefit an expanding tech start-up could enjoy with cloud computing, and due to this substantial savings, it would be be wise for start-up decision makers to consult with a VoIP telephony service provider that can offer cloud computing solutions and determine how efficiencies could be maximized through the use of a remotely managed IT platform.

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Cloud computing has been shown to enhance business productivity, and as such, there are several types of businesses in the marketplace that could derive benefits from adopting managed IT services for their daily operations.

By | 2012-02-08T15:40:42+00:00 February 8th, 2012|Data Solutions, Network Services|0 Comments

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As Chief Executive Officer of CTI Technology, my responsibility is to create an organization that transcends in employee culture, vision, and market positioning in a rapidly-changing technology industry. My passion is to guide and come alongside new leaders, helping them become tomorrow’s rock stars. My life’s mantra is to MAKE IT HAPPEN; I will do just that.

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