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Cloud computing allows small and medium-sized businesses (SMBs) to spend less on acquiring and managing physical IT assets, it has been claimed.
Nick Tonna, chief commercial officer at BMIT Ltd, said that in the cloud era, there is no longer a need for SMBs to purchase hardware and software outright.
Instead, firms can pay for IT solutions on-demand, using them much in the same way as other utility services, he explained.
Writing for the Times of Malta, Mr Tonna said IT apps are delivered as a service by the cloud vendor to the end user.
"Companies are now empowered to use IT services - servers, data storage, software applications - as the need arises," he noted.
"Services can be provisioned and de-provisioned, scaled upward or downward according to needs at a specific point in time."
Mr Tonna said charges apply for the resources consumed and for the time they were consumed.
"This means that at any point in time, the investment in IT is reflective of actual needs of the business."
He claimed that SMBs tend to be "the biggest beneficiaries" in the cloud services world, as the different procurement model allows them to avoid IT capital expenditure.
They can also save on implementation and maintenance services required to set up and operate complex IT infrastructures.
"This is a far more cash-flow-friendlier approach than the traditional upfront investment model to IT," Mr Tonna claimed.
Previously firms were required to commit "considerable portions" of their limited budgets to take advantage of IT solutions.
But SMBs no longer need to be discouraged by the cost of adoption, he stated.
"If the service turns out to be unsuitable for their needs, they can simply terminate it and their exposure is minimised," the expert said.
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