I read an article today on Forbes today about ‘Why Cloud Computing Matters to Small Biz’ and it reminded my about a story from my past that supports the point made in the article.

About 8 years ago a partner and I put together plan to start  what would be now be called a cloud application.  (Back then the term “cloud” hadn’t been coined in its current form, so it was just a “web-based” application.) As part of this project, I had to put together a business plan which included hardware and networking expenditures. Obviously, for a ‘web-based application’ we needed servers, network infrastructure, a fractional T3 (pipe to the web). Those costs were significant; they included $25,000 in servers, $2000 in network infrastructure and, $5000 per month for Internet, and this didn’t even include rent for a place to keep it all. And for all that, there was no redundancy, and every 5 new customers we would have to outlay another $10,000 for more servers. This was  lot of money for 2 guys without jobs to come up with.

To do the same thing  today, I can go to GoGrid, Force.com, Amazon web services or any other cloud based infrastructure provider, and set it up for a fraction of the cost. On top of that,  the costs are completely tied to usage so I don’t have to outlay a lot of funds up front while I wait for my  customers’ monthly fees to cover the cost.  (Great for cash flow!!). In addition I have, backups, redundancy,  and network bandwidth that can grow with the business.

Needless to say, the cloud creates opportunities for business that just a few years ago were out of reach. (By the way, that business never got off the drawing board for a multitude of reasons)

How do you think the cloud can help or hurt small business ?

If you paid any attention to technology news this week, you’ve probably noticed that Google has announced that they were going to release an operating system intially geared at netbooks next year. Its currently being called the Google Chrome OS. Since Google is the 800 pound gorilla of the internet, it got a lot of news coverage. From a practical standpoint for small business however, it’s really not that important, it’s going to be year until it’s out, and we won’t really know what effect it will have on business until then.  So just ignore the hype.

On the other hand Google made another announcement this week, one that didn’t get the same media coverage as the Chrome OS announcement but was much more important: Google is moving Google Apps (mail,docs, etc) out of beta. (Beta is the software term for a final test version) This means that Google has reiterated its commitment to these web based applications and users who want to can adopt them and cloud/web based computing with more confidence.

As you know from my last post, I’ve moved a lot of my computer operations from my PC to Google. One of the downsides of doing this is that, if the internet is down, so are you.  That’s just what happened to me last week.  At 11 pm I turned off my computer and the internet was working, and at 8 am the next morning, no internet. I troubleshot the issue and established that I wasn’t getting a signal from my provider, called, waited on hold, and learned that someone would have to come out the next day to fix it. NEXT DAY.!… that’s at least 24 hrs without the internet!, so now what. Now its time for my backup plan.

My backup plan is simple and cheap. If nothing urgent is happening I can use my iPhone to keep up with email.  If I have a major project on the other hand, our local library has free Wi Fi,  so I can pack up my laptop and go there. Its not complicated, but I’ve thought it out in advance so I don’t have to panic.  (I just checked mail on my iPhone this time since nothing urgent was happening.) You need a plan too.

Options include:

• A list of internet cafe’s in your area
• A list of free Wi-Fi locations in your area
• Tethering your phone
• Dial-up
• A Wi-Fi modem from your wireless carrier
• Verizon’s MiFi cellular modem (It lets you setup a mini wireless network)
• Wi -Max (a long distance high speed wireless service available in a few large cities)

Consider these, and see what available and feasible for your  business — and make a plan. I recommend a two phase plan, since sometimes ‘Plan B’ fails, and you need to try ‘Plan C’. (For instance, if the phone and the DSL are both out,   dial-up as your ‘Plan B’ won’t work.)

Good Luck.

I mentioned in a post Friday that Microsft is no longer going to support MS Money after Jan 2011.  So now what do you do? This may be a time to re-evaluate  at your accounting software in order to figure out what will meet your needs, and how they can be  best met.

If you are like me, when you started your home business, you used your current personal financial software, I used Quicken, but both Quicken and Microsoft have business features. Now, you have a  couple of options, replace MS Money with an equivalent copy of another brand of financial software, or upgrade to a full-fledged accounting software package. Here are some questions you need to ask yourself to help make this decision:

1. Does your Accounting Software handle expense/revenue categories the way you want?
2. Is it difficult to enter transactions?
3. Are you able to easily get accurate reports on profit and loss, net income, and margin?
4. Do you need online integration with a web store?
5. Do you need customized invoices/easier email delivery?
6. Do you want to better segregate business and personal activities?
7. Do you need to track inventory?
8. Do you need to support double entry/accrual  accounting?

Some options to consider are (this is by no means a complete list)

Outright — Fee basic online accounting. (Well reviewed)

Quickbooks Online (Both Free and Paid Versions)- A next step from personal financial software. (I use this for my consulting business)

Quickbooks – Also free and paid versions — Also easy to transition to, lots of free templates and wizards

Peachtree – More advanced for a businesses that need full support of double entry/accrual accounting

If you have an accountant,  consult him or her, before you make a decision about acounting software (I’m not an accoutant so they will know better then I.) Also since this is in no way a complete list, so please feel free to add your own suggestions in the comment section.

More here from the Wall Street Journal.
I guess we are off the hook …for now

Related Posts

• 10 Ways Usage Based Internet Access will Change the Internet Landscape

• Fast Read: More usage based pricing for Internet access

I’ve posted a couple of articles(here and here ) about how some major  ISPs (ATT and COMCAST) are piloting usage based Internet access, and it got me to thinking of the possible impacts this could have on how the Internet is used in the future.

1. Everyone will pay more.  (I guess this is kind of obvious). Even if there is an unlimited plan its going be more than what we are paying now. (Look at wireless phone service plans as an example.)

2. People will finally secure their WI-FI networks since they won’t want to pay for their neighbors surfing.

3. No more free WI-FI hotspots at coffee shops and hotels.

4. Large ISPs will partner with various bandwidth heavy sites/apps  (Video,Backup) to  provide services that are ‘exempt’ from usage charges.

5. There will be less video/multimedia on the web.

6. Alternate connection methods that provide unlimited access will see an upsurge (WI-MAX,Satellite, 2nd Tier DSL).

7. There will be less “cloud” computing apps for small business and home users.

8. Google will come up with a low bandwidth items search options.

9. People will be downloading less ‘free’ software to try out. (This may help the Post Office since it may be cheaper to mail a CD/DVD than download, and the Post Office needs help.)

10. Plain-text email will make a comeback.

Those are some of my predictions, what do you think ?

Beware, the Internet may be getting much more expensive:

Time Warner Cable Expands Internet Usage Pricing

There are two major free Office Suite Zoho Office (zoho.com) and Google Documents (docs.google.com) that I am aware of.  Both are competent suites but they have limited functionality. Google Documents includes a word Processor, spreadsheet and presentation application.  Zoho has the same as well as a number of other applications including an organizer, invoices, and CRM. The office applications are free but some of their other applications are subscription based.

Having worked extensively with the Google Applications, my general feeling is that it is good for basic word processing and spreadsheets, but if you are interested in slightly more sophisticated formatting, you will be disappointed.   Google Does not allow you to create columns, and embedded table formatting is quite limited. 

I’ve looked at Zoho as well, and tried some basic formatting on it as well and came to the same conclusion. While the tables have more formatting options, it also doesn’t support columns. Overall, I think that Zoho has better features than google, and its worth a look.

While I don’t do the most sophisticated formatting on my documents, I do like to have a certain level of features,  and I don’t feel that either of these free suites will suite meet my needs. If you choose to use them for your primary office application make sure that they will do what you need before you throw away your PC based software. I think I’ll stick with OpenOffice for now.

If you know of any other suites, please feel free to let me know in the comments.

This is the third post in my series on Cloud Computing. Click here for the introduction and index.

Email is the obvious place to start with cloud apps because its both one of the oldest cloud based applications, and because its one of the most common. Almost every email provider has a web based email program, so its pretty easy to get your mail on the web. the problem with most of those web based applications is that they only allow you to read one email account at at time. Since I have personal email address, a business email address, a blog email address, and an email address that only my in-laws use, I don’t want to be going 4 different places each time I check my email.  PC based email programs like Outlook Express, and Mozilla Thunderbird let you pull and send from different accounts in the same program, I want to be able to do this on the web too.