Advantages of Cloud Computing for Startups and Small Businesses

cloud computing service provider
Credit: HiddenBrains

Companies of all shapes and sizes are now moving to cloud. This technology is no longer a luxury, rather a paradigm shift.  The difference between cloud-based and conventional software is that when you access the cloud, your desktop, laptop, or mobile device, the computing happens in a large datacenter outside your organization. According to industry experts, this trend is expected to grow and help startups and mid-size businesses.

Here are the advantages and benefits of Cloud Computing:


Startups need the flexibility to scale services based on their needs. With cloud computing, startups can scale services, customize applications and access information anytime, anywhere with an Internet connection. This feature lets startups transcend beyond time zone and geographic locations. Startups can scale their services quickly without hefty infrastructure cost.


With cloud services, startups get a competitive advantage by incorporating the most innovative technology available. After all, cloud services provider help you to meet the ever-changing needs. Cloud infrastructure lets you deploy new projects quickly, keeping you ahead in the race of innovation.  


You know your infrastructure requirement today. But what happens to your future requirements? Your cloud environment should grow with your business with the ability to scale up or ramp down whenever there is a business need.

Types of Cloud Integration Service Models

Software as a Service (SaaS)

SaaS delivers on demand software application over the Internet on subscription basis.

Platform as a Service (PaaS)

PaaS serves as services on-demand supplying environment right from all aspects from developing, testing, delivering to managing software applications.

Infrastructure-as-a-Service (IaaS)

IaaS serves as virtualized computing resources over the Internet. IaaS minimizes expenses and complexity of an enterprise for managing physical servers and datacenter infrastructure.

Before you take a plunge into Cloud services, it is important to know disadvantages:  

Cloud Vendors Going Out of Business

Cloud computing is highly dynamic field, and there’s always the danger that a new company might run out of business or abruptly change service level agreement. A sudden change in service might have implications on your business. When you are selecting cloud service providers, find out the best company to partner.

Lack of Reliable Internet Service

This could be a big problem as you become entirely dependent on Internet connection to access information. As mission-critical work is done on Internet, organizations will need much more bandwidth. If constant and seamless Internet access, connection speed, or bandwidth is problem, cloud solutions might not be the right solutions for your startup.

Security Issues in the Cloud

When it comes to cloud services, security could be one of the major concerns. The main reason behind this concern is that you will be surrendering all sensitive information to a third-party service provider. This could put vital information at risk. It is very important to select the most trusted cloud service provider.

External Hacking Attempt

Storing information in cloud can make your company at risk of external hacking threats. After all, cloud relies on the Internet and nothing on the Internet is completely safe and secure. There is always a fear of hacking of sensitive data and information.


Every emerging technology comes with its pros and cons. However, it is important to understand your business needs and long-term objectives.Startups can consider consulting reputed cloud computing service provider who can figure out best solution as per their business need. In usual cases, public cloud is employed for non-sensitive operations, the private cloud for sensitive operations. It is important to assign dedicated resources to achieve an agile and cost-effective solution.

This post is part of our contributor series. It is written and published independently of TNW.

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