SMEs benefit from cloud battle

Microsoft and Telstra fired a latest salvo in the battle for the hearts and minds of the SME market this morning with the launch of Microsoft Office 365, a suite of tools designed allow smaller businesses access the sort of collaboration tools larger firms have been using for years.

The product, which will be sold through Telstra’s T-Suite service and via Microsoft itself, is yet another entrant in the rapidly evolving SME cloud computing market.

Google is also playing in the sector (with Optus selling its applications) but there are scores of niche providers covering everything from accounting tools (notably Xero and Sassu) to HR tools, CRM tools, project management and data tools.

I won’t comment on Microsoft’s new product because I don’t know enough about the technical specifications at this point. But I know the cloud battle is great news for entrepreneurs.

The competition for the SME dollar is ensuring smaller businesses are now getting better access to better tools, generally at a better price – or at least a price that takes into account the fact the businesses who use the cloud have to install, manage and maintain less IT infrastructure.

In this way, the rise of cloud computing is another playing field leveller for smaller companies.

Being able to pay for as much service/support/space/etc as you need gives micro businesses the chance to tap into tools they wouldn’t have been able to five years ago – particularly tools that allow collaboration through the sharing of data and information.

Being able to access these services anywhere and at any time plays directly to the key advantage that SMEs have always had over larger rivals – flexibility.

Individual entrepreneurs need to tread carefully here – the battle for the cloud means there are now plenty of salespeople out their spruiking their wares and trying to get SMEs onto contracts.

If you need advice to figure out which services will work best for you, get it.

But if you haven’t started researching the cloud, do so. As this battle continues – and prices keep falling and access to software keeps improving – SMEs will continue to benefit.