Why Virtual PBX and Other Cloud Services Are a Small Business Equalizer

The cloud is a small-business equalizer. New businesses should be focusing almost exclusively on cloud-based software solutions, and existing small businesses should be reexamining their processes in light of the dramatic shift that cloud software-as-a-service has created.

There are several reasons why the cloud represents a big shift, and how it can put small firms on par with much larger competitors.

First, it brings first-rate business tools to cash-strapped firms that don’t have the deep pockets of large enterprises. There has long been a gulf between big business systems and SMB software, but that gap is narrowing considerably because the cloud offers a la carte, pay-as-you go pricing that helps firms of all sizes use the industry standard software. CRM is a great example; large businesses use Salesforce.com for contact management, and do small businesses. Prior to the cloud, small businesses could not afford the same CRM solutions as Fortune 500 firms.

Second, cloud services equalize business not only because pricing can be scaled to budget, but also because there’s no longer the need for an IT staff to support these solutions. The cost of many software systems in the past has largely come from the need to support them and maintain the infrastructure necessary to make them run. But with the cloud, that maintenance is outsourced to the cloud provider and no longer is handled by the business. This opens the door for small business, which has less IT resources typically.

Third, the cloud brings flexibility. The pace of business has quickened as a result both of connectivity and this cloud infrastructure, and the leaders today often are those that adapt fastest to changing conditions. Small businesses are ideally suited for this task, so the shift toward agility brought on by the cloud favors smaller firms that can be nimble and reorganize and adapt quickly.

Finally, the cloud serves as an equalizer because businesses now can buy only the resources they need—and scale when the business grows. Using the example of business phone systems, Talk Business notes that services such as virtual PBX allow small businesses to use only a handful of extensions and features, then expand features and the number of lines as a business grows without having to change systems. The cloud is vastly more scalable than on-premise solutions, enabling small businesses to compete and grow quickly as needed.

Overall, services such as cloud CRM, virtual PBX and other systems such as cloud-based data storage and payroll level the playing field. There might come a time when large enterprises find a way to once again take advantage of their size, but right now it has never been a better time to run a small business.

Edited by Maurice Nagle