Based on 2017 statistics from The Cloud Industry Forum, 82% of start-ups are now making use of at least one cloud computing service, compared with just 54% in 2016.
Furthermore, around 70% will increase their use of the cloud in the next year, and 8% have moved their IT component exclusively to the cloud.
Statistics show that most start-up businesses fail in the first year, so the flexible price plans typical of many cloud-based applications tend to suit the needs of new ventures. Being an entrepreneur is challenging, with most ventures having one thing in common: a limited budget and the need to capitalise on market potential. Of the businesses that do succeed, there are only a small number that reach into the millions.
Start-ups that made it big
Most people recognise the names Uber and Airbnb; both these businesses achieved global success in a short space of time. They net multiple billions based on the “sharing” or “access” economy model. Airbnb started operations with just $50 000 – so, how did it achieve success with a limited budget and only a small number of staff?
If we look at the success of these start-ups, it becomes clear that the technology used to run their day-to-day activities is their major strength. Using cloud computing via software models, they could catapult their practical function into an online service which reached millions. Their business models included online payment and the ability to inform customers via text in real time. If they had tried to achieve this using in-house technology, the costs would have impeded progress and profits.
The benefits of cloud computing
Cloud computing has been hailed as one of the genius technological advances of the decade. Now, instead of spending large amounts of capital on hardware and infrastructure, businesses can switch on cloud-based services and up or downgrade, depending on the growth of their business.
Cloud services are also available immediately and that means small businesses can concentrate solely on business models. Cloud computing offers an important storage function but, more than this, allows business to maintain competitive prices to entice customers to their product or service.