Hybrid Cloud is the Way to go for Businesses

The SME space is ripe for services to be delivered through the cloud. Now adoption is nevertheless low and many small business owners have no idea of what cloud computing to tell the truth is let alone what it can do for them.

The new buzz word in information innovation

Cloud computing is the new buzz word in information innovation. And like most new technologies it can be quite hard to separate hype from the important information. In the case of cloud computing it can be quite hard to even work out what it is and what it does.

The challenge is that in the early stages of any new innovation the focus is on the technical features in other words than the benefits, and with cloud computing the features are very technical. The conversation is as well dominated by the purist technical view of how it should all work. Nevertheless we all know the real world at times has to adapt the pure model to a hybrid approach to get a practical solution that makes sense.

Simple definition

So let's start with a simple definition and Wikipedia does quite a good job: "Cloud computing is Internet-based computing, whereby shared resources, software, and information are provided to computers and other devices on demand, like the electricity grid."

The electricity grid comment is a good way to think of cloud computing. Just like the grid, with cloud you can access your information any time you want and from anywhere provided you have a connection to the internet. However of course you need a computer with a piece of software to be able to see and interact with your data.

The benefits of the cloud for business owners are becoming more obvious. Access from anywhere and anytime, remote support and collaboration with trusted business advisors or accountants who are working from different offices are all real and obvious benefits. Connecting and interacting with other data sources is as well a major benefit. For small businesses this would include connecting with other businesses, connecting with bank data or displaying data in other web properties. Taking your stock data and automatically displaying this in other web based market places for instance.

Several challenges need to be overcome to make this "cloud" work for businesses. Internet reliability for mission critical business processes is a challenge. What happens when the internet connection is down? How do you keep access to your business data when you can't access the internet? In the early days of the grid electricity consumers were used to intermittent supply of electricity. Progressively we have come to rely on the grid and up-time is taken for granted. During the internet is getting there we all have stories of slow speeds, occasional outages and cap speed limitations.

The browser itself

Another issue is the browser itself. For high speed data entry especially for repetitive tasks or data lookup the browser is limited. This is important. Browsers are getting better and richer with more features and functions however right however, would provide a frustrating experience for anyone who had to work with the data all day long. Generating multiple invoices, receipting a pallet full of inwards goods at the warehouse door or taking phone orders quickly and efficiently would be frustrating with a pure cloud approach. The hesitation of the browser as it moves from field to field in a data entry screen would, for many users be unsatisfying.

And at the time there is the ease of getting going. Buying the cloud model today is a bit like buying a car one piece at a time and bolting all the parts at the same time yourself. For most business people this is just not possible. The IT knowledge, the time and effort required and the potential for failure would just mean a distraction to running their business.

The cloud model is often represented as a complete change. Most cloud models allow the data to be stored only in the cloud and insist on the browser as the only way of working with the data. This approach will limit the adoption of the cloud as a serious model for small business.

The solution is to take a hybrid approach

The solution is to take a hybrid approach. Data in the cloud and on premise. Browser and/or a rich desktop experience. What if the business could continue to use its existing business systems during enjoying all the advantages of having data in the cloud?

Using the richness of a desktop application and having a choice of storing the data in the cloud and on-premise with a regular consistent synchronisation. How beneficial would it be if the business could keep working if the internet went down and the data would be re-synchronised when the connection was re-established. How convenient for the travelling sales person to be able to access client data even during on the road where internet connections were less than perfect?

The major cloud vendors are recognising this hybrid approach makes the best of both worlds. Microsoft for instance has recently announced Azure. A cloud platform that lets lots of different types of programs interact with the business data in the cloud. Other vendors are connecting existing desktop users to a rich cloud based service. And some are connecting multiple business applications to the same data source.

Having your cake and eating it too? It's the choice that the hybrid model allows that will make it easier for small business to adopt the cloud as a smarter way of working.

Online Evangelist for MYOB

Tim Molloy is an Online Evangelist for MYOB. Prior to this, in 2007, Tim was owner and CEO of Exonet, a business software company.

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