For all the advantages it brings to large companies, the advent of virtualisation, cloud computing and the related concept of software as a service arguably brings more benefit to the small and medium enterprise.
The reason is simple and one which is almost as old as the technology industry itself: bandwidth. And in a bandwidth-constrained country like South Africa, that means in a rare subversion of the norm, SMEs may be first in line to benefit from some of the latest advances in the information technology industry.
In simple terms, cloud virtualisation allows for the creation of remotely hosted Internet applications. These applications reside `in the cloud` (exactly where is not important) on data centres. Accessing them as `services` merely requires an Internet connection and a browser. The service provider can provision full features for a range of applications, with everything from e-mail to project management, to CRM, to typical office applications like word processors and spreadsheets, accessible to the user. That`s the essence of SaaS (software as a service).
Now, using these applications simply requires accessing a Web site, creating an account and then getting to work, entering information and letting the app do what you need it to. All the information is stored `in the cloud`, not on the machine in front of you, and is secure, protected and accessible to you no matter where you are or even which device you are using. Lose your notebook? No problem. The SaaS application and its data are `in the cloud`, so you haven`t lost the data.
For the privilege of using the app, you are likely to pay a monthly service. Herein lies another advantage. There is no need for capital expenditure (even a suite of office productivity applications can cost several thousand rand per user) and the cost is written down to an operational expense.
While any sized company, with any number of people, can access and use SaaS applications, they are not without their limitations. Take an e-mail app, for example. In big companies, lots of large files are often exchanged on the intranet. Sending these files over the Internet will drive up bandwidth costs. Hundreds of users accessing SaaS applications, especially for collaboration, can quickly escalate to render the model financially less than viable.
Then there is the reality that bigger companies also tend to be comfortable with buying their software outright and hosting it locally, just because they have the resources to do so and want the control.
The SME, meanwhile, may want to try new software, a service desk for example, to see if it works in their environment. In some cases, this might be done without charge. You may not have a backup and restore policy in place. You may have a distributed work environment, without a VPN, but with people located around the country.
For all these reasons, cloud computing and SaaS is arguably more immediately applicable and valuable to the SME rather than the enterprise. It is a model which puts enterprise software within the reach and affordability of the SME, while delivering the value that enterprises are accustomed to. And it can do so almost immediately, with a range of service providers already operating and ready to deliver from the Net, right now.
Share
CA Southern Africa
CA Southern Africa is the sole representative of world-leading CA technology in sub-Saharan Africa and a member of the EOH group of companies. CA Southern Africa is the IT management expert, merging international innovation with a world of local possibility. CA Southern Africa provides customers with a holistic and all-encompassing solution which provides both traditional software-based solutions as well as other outcomes-based services which require little upfront investment and skills. CA Southern Africa`s solutions can be tailored to suit and address each individual business and allows them to choose how they would like to manage and run their IT, either internally or through the locally hosted CA Southern Africa facility.
EOH
EOH is a business and technology solutions provider creating lifelong partnerships by developing business and IT strategies, supplying and implementing solutions and managing enterprise-wide business systems and processes for medium to large clients. EOH operates in the following three clusters of business units as a fully integrated business: Technology - Through a number of subsidiary companies, EOH is able to sell, implement and support a range of world-class business applications including ERP, CRM, business intelligence, advanced planning and scheduling, e-commerce and manufacturing execution systems (MES). Consulting - Concentrated under the EOH Consulting brand are business units offering services ranging from strategic and business process consulting, project services, change management, supply chain optimisation and education. Outsourcing - EOH offers comprehensive maintenance and support of clients` IT infrastructure and applications through the rendering of full IT outsourcing, application hosting and managed services. In addition, EOH offers full business process outsourcing (BPO) services. EOH has a presence in all major centres in South Africa and operates in the rest of Africa.
Editorial contacts