Should You Move Your Small Business Into The Cloud?

Hewlett-Packard's Philip McKinney offers five criteria to consider before moving to the cloud, including how fast your business is growing, where your employees are located, how reliable your system has to be and how important data security is.

"The world is abuzz over cloud computing--using virtual servers available on demand over the Internet. But the truth is not every small business needs to operate 'in the cloud.' Before you make the move, consider these five criteria, care of Philip McKinney, vice president and chief technology officer of Hewlett-Packard's Personal Systems Group.

How Fast Is Your Business Growing? Investments in hardware and software typically follow a stair-step pattern. Incremental outlays often lead to too much capacity; that's why utilization rates for IT systems tend to be low--30% to 40%. Cloud computing can more smoothly match technology expenditures with a company's natural trajectory. Fast-growers tend to be good candidates for the cloud, as are those with choppy or seasonal demand. Stable, predictable outfits that feel more comfortable with keeping systems in-house might be better off staying pat."