Simply put, cloud computing refers to computing based on the internet. This eliminates the need to run programs or applications downloaded on a personal computer, since the same applications can be accessed through the internet. Not only does this help in the optimal utilization of computing resources, but it also enhances management by converging the software and hardware needs. Small businesses are predicted to spend over $100 billion on cloud computing by 2014, and with good reason, considering all the benefits it has to offer. Here are the top benefits of cloud computing:

• Flexibility: With the vast capacity available on the remote servers of the cloud computing service, it is possible for the service to instantly meet the company’s demand for more resources than usual.

• Quick disaster recovery: Cloud computing eliminates the need for complex disaster recovery plans. According to a survey by the Aberdeen Group, businesses that used cloud-based systems were able to resolve issues 4 times faster as compared to those that didn’t.

• Decreased costs: The “replacement” capital expenditure incurred updating obsolete resources is eliminated with the use of cloud computing services. Costs are further reduced through the centralization of power, bandwidth, and real estate.

• Location independence: Cloud computing makes it possible for SMEs to set up multiple redundant sites to establish business continuity during disaster recovery.

• Quick deployment: A cloud computing system typically takes lesser time to go live, as compared to an on-premise application. In addition to this, the IT resources required for a cloud computing service are also minimal.

• Automatic software updates: Cloud computing suppliers provide security updates and server maintenance, which helps to save time as well as resources.

• Pay as you go: Businesses need absolutely no capital expenditure to invest in a cloud-computing service. The start-up costs are also minimal, since these services are typically pay-as-you-go. In addition to this, the ongoing expenses are predictable, which is beneficial from the business point of view.

• Increased collaboration: Cloud computing encourages collaboration among employees by allowing them to sync up and work simultaneously on documents, despite their location. Colleagues can also share apps, follow records, and receive critical real-time updates. This form of collaborative technology results in a significant boost to the return on investment of companies.