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How Cloud Computing is Helping Our Economy

The trend toward Cloud Computing (also known as Software-as-a-Service or SaaS) has substantially accelerated during the recession. In fact, it’s arguable that the current economic crisis has actually inspired the rise of cloud computing. Although many entrepreneurs fear that Cloud Computing will result in a world of businesses that don’t really produce a product or a service, Cloud Computing is actually helping our economy in a few key ways.

Cloud Computing Empowers Startups

Cloud Computing enables entrepreneurs to launch startups and SMBs with less money up front. SaaS solutions such as Amazon Web Services or a VoIP phone systems often provide everything you need to launch your business, right in the cloud, with hardly any IT costs. Cloud Computing instigates more startups, which in turn creates more jobs.

Cloud Computing Creates New Lines of Business

Business is all about relationships. For example, the relationship between the company and its customers, or between the company and its suppliers. Cloud Computing opens up new lines of business in information technology or service delivery, creating new niches that start ups can cater to. For example, with Cloud Computing has enabled some new niches in VoIP phone systems.

Cloud Computing Inspires Software Innovation

Finally, Cloud Computing enables startups to create and market software for a fraction of the cost it would have required years ago. This results in greater innovations in software engineering, as more concepts have the adequate funding to the properly executed, including the more unusual ideas which ultimately inspire new software trends.