Cloud computing is the future of technology. Most techies would say the present. It’s the shift from running software applications locally on your computer to online applications that run “in the cloud” – the cloud being the internet. You pay a monthly service fee to use these “software as a service” or “SaaS” applications and they are accessible anywhere you are connected to the internet.

This type of business model also makes it easy for smaller companies to use sophisticated software cost-effectively. Most SaaS companies have scalable step functions in their pricing so that they can cater to small, medium and large businesses. Some types of step functions include the number of users for the company, the level of functionality provided or the amount of storage space used by the company.

Many SaaS providers are now providing their service for free or based on a “freemium” business model. The freemium business model allows you to use the basic application for free and pay to add features or users to your account.

While for some cloud computing might be a new term or not fully understood, most of us use applications that qualify as cloud computing on a daily basis. Google Apps, Gmail and Hotmail are all examples of cloud computing. If you use Blogger to run your blog, that is another example. Any time you use software that doesn’t require you to download an .exe file that you install on your computer, it’s cloud computing.

For business, cloud computing is often a favorable alternative to running expensive servers and hiring costly IT staff to manage technology.When you purchase software as a service you pay a fixed monthly fee and the service provider looks after all costs involved with managing the technology.

SaaS also makes it easy for companies to operate virtual offices without a central office. By moving your technology to the cloud, remote staff can access company systems anywhere.

Almost every business application imaginable can now be found in the cloud. Whether you’re looking for a billing system (FreshBooks) or a tool to help manage a group project (Basecamp), there is a solution available – often for a few dollars a month.

If you’re starting a new business or looking for new software solutions for an existing business, consider using SaaS. You’ll often find better priced applications with greater flexibility and functionality.

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