The Cloud may be offering choice to businesses nowadays, though ITonCloud CEO, Andrew Tucker, said the evolution began much earlier.
“It’s important to remember that nowadays companies are much less self-contained and much less vertically integrated than they were 20 years ago,” he said.
What organisations have been doing over the years is steadily outsource non-core activities.
Tucker said this is so they can concentrate their resources on value-added activities related to the products and service their customers buy from them.
“As a consequence most companies are dependent on a network of suppliers that provide support and services,” he said.
The Cloud also can help organisations manage the business processes and better collaborate with their supplier partners.
“This is why there is a bigger competitive advantage in using private Cloud providers over public ones,” Tucker said.
Going all out
The Cloud is a good immediate choice for start-up companies, according to Tucker.
For smaller businesses, the distractions of running commodity computer hardware and software can be avoided.
“They are also able to concentrate on developing the unique value-added product or service that will be the profit generator for their start-up company,” he said.
Instead of doing all the legwork associated with procuring on-premise IT, start-up companies can just subscribe to an accounting, CRM and email from a public Cloud provider.
“There is no real compelling reason to go to a private Cloud provider unless their business has a unique IT requirement,” Tucker said.
Patrick Budmar covers consumer and enterprise technology breaking news for IDG Communications. Follow Patrick on Twitter at @patrick_budmar.