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In recent years, more and more companies are transitioning from on-site servers and software solutions to cloud computing. So much so, according to Forbes Magazine, worldwide spending is predicted to grow 19.4% each year, making cloud computing a $141 billion industry by 2019.

Cloud computing occurs when software services, platforms and programs are managed by another company over the Internet (“the cloud”). During pre-cloud computing, users would run programs by downloading software to specific computers in their office or home. Cloud computing (or Cloud IT) runs the same programs over the Internet, instead of on a computer’s hard drive.

Inspired by the great successes of the original Cloud IT companies (including: Automatic Data Processing, ADP; Google and Amazon Web Services) and by cloud-based computing’s continued growth, cloud-computing startups are becoming more prevalent. Businesses within all industries and of all sizes are now choosing cloud-based services and software solutions over traditional in-house options.

With an increase in demand, cloud-based computing startups now have the opportunity to offer their services to an expanded marketplace. In order to increase sales opportunities and compete with the larger, established cloud-computing companies, startups need initial funding.

Major Cloud IT players include some of the biggest companies in the technology industry, such as:

  • SalesForce: a customer-relationship management tool, who considers itself to be “the inventor of cloud-based software.” (Current Worth: $32.6B);
  • LinkedIn: a recruiting-based software and social networking platform used to connect potential employees to employers, keep users updated on industry news and act as a virtual resume. (Current holdings: $28.02B) and;
  • Amazon Web Services: a collection of cloud computing programs, all located on one secure platform. AWS grew by 78% in 2015 alone, with industry experts predicting it to be the largest cloud computing company in the world. (Predicted holdings: $160B)

Cloud computing’s popularity is due to the specific advantages organizations are experiencing when making the transition from on-premise to Internet-based platforms and services. These include:

Affordability

The utmost goal for every business is to make profit. Using cloud computing, companies keep costs down by eliminating in-house servers, hard-drive space and extra equipment. In addition, businesses only pay for software and servers when they are needed. This pay-as-you-go method means companies are able to add or reduce cloud services, depending on their demand.

Mobility

Since cloud-based platforms, services and software are over the Internet, they can be available anywhere, anytime. Users are no longer restricted to using just one device in one location. With cloud computing, multiple devices run the same program, with seamless integration and mobile apps. With mobility comes the risk of lost devices. Since documents are stored in the cloud, if a device is lost, the documents will still be accessible.

Collaboration

If team members can access and work on specific files at any time, there is a stronger likelihood that other team members will do the same. This means collaboration is easy and instant. Also, when files are stored in one place (as opposed to multiple), every person will be working on the same version, meaning there is tight document control.

As companies continue to choose cloud computing and startups look to offer new platforms and software, funding solutions need to become easier to acquire. Cloud computing is currently used, in some form, by 93% of businesses and this number is only increasing. With the demand for cloud-based platforms and software continuing to rise, there is no better time than now to acquire the finances to enter the marketplace.

Thermo Credit looks for entrepreneurs with unique developments in the technology industry and helps them obtain the start-up funding needed to launch their businesses.

Cloud-It startups can focus their energies on creating successful software, services and platforms, knowing that Thermo Credit will provide the necessary funding to make them possible.