November 15, 2016 21:35
Published: August 29, 2016 14:38
Welcome back! In this installment, we’re going to explore the second major half of what cloud computing can do for the economy. While the topic of the last piece dealt with the physical expenditure that is associated with both onsite and offsite networking, this article will deal more with the indirect effects of such a move. Mainly, we’ll be talking about the thing no business can ever get enough of. Time.
You see, one of the greatest things that affects the economy is time. Businesses live and die by the clock, it seems. And most of it, at least on paper, boils down to one word. Productivity. Let’s break it down like this: You have to pay your people a wage. Those people are doing work for you in exchange for that wage. Now, the ability for you to be able to pay them that wage depends on them being able to complete the work that you’re paying them to do fast enough for you to be able to make a profit.
The faster they do their work, the higher the profit margin, since the wage that you’re paying them is a fixed element. The higher the profit margin, the more workers you can higher to complete work, which circles back around to increasing your output. Simple growth matrix. Now, most of this work is going to depend on a network of some kind, at least this day in age. And the ability for that network to stay functional and up-to-date is essential.
If that network slows down, or shuts down entirely, your workers can’t do their work, and you don’t make a profit. Multiply that by the number of businesses in an area, and you can start to get a picture of the loss that keeps people like us up at night. However, once many of the businesses in a given sector begin to move their servers over to the cloud, those profit losses start to shrink. As they’re no longer responsible for maintaining the network, they can focus more time into core business processes.
Because the uptime of their network goes up, so does the overall productivity of the company, increasing profits while lowering IT costs. Multiply that out by the businesses in a given area, and you can see how local economies can start to have more capital to work with. Local communities feed state systems, which feed national systems, which feed global systems. It may sound silly, but cloud computing, if done correctly, could change the world.
So the next time you’re talking to one of your business owner pals, and they start raving on about how much they love their new hosted exchange, give a listen. You never know. You could help save the world.