When “good enough” hurts the bottom line

Many small business owners greet a technology upgrade with the same enthusiasm as they do preventative maintenance on a car. Sure, it’s the right thing to do in the long term, but when everything seems to be running just fine it’s hard to look past the potential disruption involved—and the concern of additional expenses. I speak with CEOs of small and midsize businesses who are asking themselves the same kinds of questions when it comes to running part or all of their businesses in the cloud: will these advanced cloud applications and infrastructure make that much of a difference to their bottom line? Maybe “good enough” really is good enough, at least for now.

The question of the ROI of the cloud for SMBs hinges on whether the long-term gains achieved through cloud technology are significant enough that it’s worth the upgrade. If you’re a single-location neighborhood shop that’s been making do with old technology, it’s hard to imagine that switching to the latest and greatest can have a major impact on your business. But it can, and it most certainly does.

By providing the resources of big IT without the upfront investment, the cloud really is democratizing technology for SMBs

In today’s fast-paced world, even the smallest disruption caused by outdated technology can affect your bottom line. As an example, let’s look at one industry that knows the precise value of a lost hour of productivity better than anyone: the legal field. Microsoft partner Eastridge recently helped a small law firm transition to the cloud. Previously, the firm depended on a system that required 45 to 60 minutes of weekly downtime to run updates. An entire firm full of lawyers who can’t access the tools they need for an entire hour each week leads to thousands of dollars in lost revenue. After Eastridge helped the firm move to the cloud, the same updates have been performed in less than five minutes each week, enabling the company to maximize the time its staff are able to bill and, as a result, maximize revenue for the firm.

The ROI of cloud extends beyond just increased revenue for companies with fee-for-services models; it can affect all aspects of running a business. For Tastea, a tea retailer with three locations within the state of California, the move to Microsoft cloud productivity solutions had a surprising and wide-ranging effect.

“Office 365 makes us nimbler and able to react faster and more consistently. Plus, after we moved to Office 365, I noticed right away how much happier and more motivated everyone is,” said Ted Vu, cofounder of Tastea. Now the company relies on Microsoft Office 365 for everything from inventory management to customer service. “I couldn’t believe how inexpensive it was for us. I feel as though Office 365 is making a positive impact on almost every facet of our business.”

When talking to customers and industry analysts, we hear that these technologies more than pay for themselves, delivering a significant, tangible difference for companies that are usually cash strapped and looking for ways to reduce costs and become more efficient. A recent study by the Boston Consulting Group found that technologically advanced SMBs increased annual revenues 15 percent faster than less tech-savvy businesses. The same study found that the use of technologies such as cloud and mobile have created more satisfied customers and resulted in better customer relationships.

Cloud services are revolutionary for small businesses because they deliver enterprise-class, secure and reliable IT offerings that are affordable, easy to deploy, and easy to manage. From streamlining the sales process with CRM tools, like Microsoft Dynamics CRM, to gathering new insights about your business with Microsoft Power BI, they can also yield significant business value in areas you might not expect from technology. By providing the resources of big IT without the upfront investment, the cloud really is democratizing technology for SMBs.

Don’t sit there and wait for something to break down before you consider adopting modern technology can help your business forward. Interested in finding out your options? The Microsoft ModernBiz site has a few suggestions.