New businesses pop up around the world every day and many have their sights on reaching the mid-market. To get there in an increasingly competitive marketplace, a great value proposition isn't enough; companies also need to control business expenses. Operational efficiency requirements are driving many of these high growth businesses to utilize cloud-based infrastructure from the start. To understand why, you need only look at the entrepreneurs that are spawning tomorrow's mid-size businesses.

Efficiency is the name of the game in the entrepreneurial world. For entrepreneurs working with limited resources, efficient planning can catapult their business ventures ahead of their competition. Cloud technology makes it affordable for these young organizations to pool computing resources. Public cloud offerings such as Amazon Web Services, Google Cloud Services, and Microsoft Azure allow entrepreneurial organizations to consume computing infrastructure in the same way Fortune 1000 companies do, by sharing the cost among themselves.

As companies grow, they can take the same techniques used in the cloud and bring them in house to further control costs and address larger company requirements around data security and proximity. This hybrid cloud model works because it delivers three key benefits: it provides world class IT infrastructure capabilities, it enables greater agility than traditional IT models and it costs less. These three reasons explain why the cloud is driving business efficiency and will transform today's startups into tomorrow's mid-market power houses.

1. An Architecture of Innovation

Cloud is acknowledged as the computing architecture of the future. In just four years, techies are predicting 80% of all small businesses computing will live in the cloud, most of it on Linux. Cloud technology drives open source innovation forward faster than traditional server hardware.

Fierce competition and innovation among cloud providers is bringing previously high-end technology to everyone. For example, software innovation like data reduction was previously only available in extremely expensive storage systems. Now software defined data center technology is making advanced features available in the cloud for everyone.

2. Increased Agility

In today's economy, successful companies are the ones who can innovate the fastest and the most efficiently. A cloud strategy yields the lowest cost IT infrastructure that scales up smoothly. Entrepreneurs can focus on core strengths and competitive advantages rather than focusing on significant upfront technology investments. The cloud makes it simpler for small businesses to manage their offices wherever and to scale operations immediately.

3. World Class Computing at the Lowest Possible Cost

Public cloud created an architecture designed for high utilization and maximum efficiency, but that innovation is increasingly available for hybrid clouds. Pandora's box is open and now all that innovation and low cost open source technology is out and available. Expensive, proprietary technology is headed out, low cost hyper efficient capabilities are headed in.

Tom Cook, CEO of Permabit Technology, has identified the four things that lie behind the ability of cloud to provide world class computing at the lowest possible cost.

Virtualization which drives up utilization rates by supporting more workloads per server. Virtualization is integral to all cloud computing services.Open Source and open application programming interfaces are being widely adopted. By 2017, it's estimated that over 60% of enterprises will be employing them.White Box Hardware is now used in the majority of cloud data centers enabling significant savings when compared to branded hardware used by Tier 1 storage companies.Data Reduction has become a pivotal technology for the cloud. As massive cloud data centers approach physical and electrical limits, reducing the amount of data stored maximizes cloud efficiency and is the new key to lowering cloud footprint and TCO.

It's estimated that 93% of businesses use cloud technology in some form or another, and that number is set to increase as cloud integration becomes easier for enterprises. As businesses look to grow faster and more efficiently, we're seeing cloud technology help drive open source innovation forward faster than traditional server hardware.

With the hybrid cloud model delivering world class IT infrastructure capabilities, greater agility than traditional IT models and lower cost, it is no surprise that cloud is in everyone's future. In fact, Gartner says that by 2020, a corporate 'no cloud' policy will be as rare as a 'no-internet' policy is today.

Published on: Jul 11, 2016