By Ian Beckwith

As the economic gloom refuses to go away, small and medium-sized businesses are continuing to look for ways to save money. And one area that is increasingly coming under the microscope as a possible way of reducing costs is IT support. Companies are asking themselves: do I need that server? Do I need all that hardware? That’s where cloud computing comes in and its growth is giving SMEs a clear and, more crucially, a cheaper alternative.

The price of cloud computing is falling all the time. Competition between providers is intense, hence the knock-on effect on the cost of services. A price war between providers seems inevitable. So whereas SMEs may have been previously tempted to ignore the cloud, the cost-effective nature of cloud computing is now making it impossible for companies to shun it for much longer.

But there is growing evidence that some IT support firms could be missing out on the cloud revolution. The reason? They are not engaging with their clients. SMEs looking to cut costs are quite prepared to circumnavigate their IT company to find a better deal if they are not offered favourable terms by their own provider. So while IT consultants like to install hardware and reap the ongoing returns, it is apparent that they must start adopting a new business model or suffer losing their clients entirely.

IT support companies should look at cloud computing as a golden opportunity to expand their customer base. Without an on-site Exchange server, IT companies can potentially take on more clients and also provide the more lucrative desktop support packages that can often require less time and expertise. By offering cloud-based services, IT support firms have more time to boost and expand their client base. Despite the low prices, SMEs may still be uncertain about the pros and cons of cloud computing, and need educating about the benefits. This is where IT support firms can take the lead, by teaching SMEs about cloud services while simultaneously selling their products.

David Banks, Commun IT (http://www.communit.org.uk/) * says: “Most businesses I deal with are currently exploring the option of cloud computing. The majority of our customers are running small businesses, such as non-profits and charities. With the current decrease in funding, these organisations are looking to reduce overheads and save on operational costs.

“There is still this fear of migrating to the cloud, however it’s the flexibility of the cloud that can turn these fears to an advantage. As an IT support company, we can't afford to spend hundreds of thousands of pounds on infrastructure and technology. As more and more people make the move to cloud computing, I think the ones that haven't embraced it will lose control of their customer base and therefore revenue.”

* Commun IT is a Giacom reseller. 

About the author

Ian Beckwith is the Sales and Marketing Manager at Giacom World Networks. Ian has worked for Giacom for five years and has 30 years’ experience in the technology sector. Ian heads a team of business development professionals within Giacom and has been instrumental in rapidly expanding the company’s reseller channel.

About the company

Giacom ThinkCloud is one of the leading providers of cloud-based services. Based in Hull, East Yorkshire, the Giacom ThinkCloud team has grown since setting up in 1999 as a web hosting provider. It has one of the biggest networks of 450 cloud resellers in the UK. Although 90% of Giacom ThinkCloud’s clients are based in the UK, it also has clients across Europe and the rest of the world. For more information visit http://www.giacom.com/ or contact Nick Marshall or Ian Beckwith on 01482 611060.