In 2006, I started overhauling my other business. I wanted to focus on my work, get better at what we were already good at, and outsource the rest. Previously, we were spending too much time on tasks that were not our core competencies. That meant outsourcing several things that we had always done in-house. Among the many things to change was our networking, software and server maintenance. But how?

The answer was web-based software, also known as “cloud computing“. These days, almost everything with computers except the hardware can be outsourced over the internet. I was sick and tired of losing productive time to network issues and server crashes. I have a funny idea that computers should be as simple and reliable as pencils. Unfortunately, they never are. Web-based software liberated us from the hassle. Best of all, it significantly reduced our computer expenses and it now allows us to work from anywhere — i.e. whether it’s at the office, from beaches in Hawaii, or (my favorite) while rock climbing in Spain.

What is cloud-computing? What is web-based software?

Web-based software is software that is offered over the internet rather than installed on the computer at your desk. Each user logs in with a username and password through a web browser. Paid services typically charge a monthly fee to use the product.

The best part about it is that it eliminates the hassles that always come from installing software, updating versions, dealing with file corruption, waiting on hold, waiting for “the IT guy”, real work grinding to a halt, etc. You always have the latest version available, and if something does go wrong, the provider deals with it quickly, because their entire user base (and their entire business) is affected by it. The result is that problems are fixed faster and free of charge.

Why is cloud computing better?

#1) It’s WAY Cheaper

Although many web-based software services charge a monthly, ongoing fee, the annual cost of subscriptions rarely outweighs the aggregate cost of software, upgrades, installation time, problem-solving time, lost work and general waste of resources that traditional software has always demanded.

For example: In 2006, we originally spent $800 on a Microsoft Small Business Server and then $4,000 in IT costs over the following year trying to get it to work properly (which it never did.) In the end, I gleefully pulled the plug out of the wall and switched to Google Apps. In the past two years with Google Apps, we’ve enjoyed a superior product, downtime has been near zero and it has cost us $0. That’s right — it’s better and it’s free.

#2) It’s Platform Agnostic

Because web-based software is offered up through the internet, it doesn’t matter whether users are PC-, Mac- or Linux-based. For most businesses that use PCs, this isn’t much of an issue. For Mac and Linux users, however, web-based software offers broader access to the same suite of products without any inconvenient considerations about operating system compatibility.

This also makes it ideal for mixed-platform office environments. We have both PCs and Macs in our office, and web-based software has eliminated any hassle that may come from using the same software on different operating systems. Users can continue with their platform of choice or easily switch to a different one. The web-based software we use is always accessible.

With software that’s independent from our local computers, it also offers great advantages if traveling without a computer — any internet cafe will do. As a colleague of mine likes to joke, “We have thousands of offices worldwide.”

#3) Back Ups Are Included

Reputable web-based software vendors typically use enterprise-class servers, top-notch security and redundant back up systems. Because of their higher level of security and control, data is often more secure on a cloud-based server than it is at a desk. It’s still buyer beware — be sure to check out the security and back up standards of any company you decide to deal with — but web-based software providers are often more secure and more reliable than what a typical office can realistically provide.

When we were thinking of switching to Google Apps, I contacted an associate that works in Google security. He summed it up quickly:

“What do you think’s more secure? Your server in your office with one router, one password you rarely change, no temperature control and space unmanned on evenings and weekends? Or ours with multiple redundant data centers, full-time staff, and constantly improved security? We eat our own dog food. So I suspect that if Google Apps is secure enough for Google, it’ll be secure enough for you too.”

Best of all, if my computer self-destructs tomorrow, it doesn’t matter. The only delay I’ll have is what it takes to replace it. Because almost all of our data is stored “in the cloud”, I can avoid having to reinstall all my applications and files on a new machine. I’ll be up and running as soon as I turn it on.

#3) It’s Always the Current Version

Along with eliminated IT costs, time is also saved by never having to upgrade — or rather, always having the upgrades done for you and included at no extra charge. Rather than having to wait a year for the newest version of the software you use, web apps are constantly updated with new features. Not only does this eliminate the hassle of in-office upgrades (and the inevitable crashes and compatibility issues), it also increases the value-per-dollar of your subscriptions. It makes web-based software more and more economical because the monthly price stays the same and the product often continues to improve.

#4) You Can Work From Anywhere

For some, working from anywhere may not sound like a good thing, especially if you’re still tied to a fixed work schedule with only a couple weeks of holidays per year. However, if you’re inside a more progressive office or you’re thinking about trying to overhaul your corporate culture, then working from anywhere has a lot going for it.

In our office, we use a results-focused method called “Working on the F.A.R.M.” It wouldn’t be realistic or fair to evaluate people on results-only if we didn’t provide the tools to help make that happen. Because of the web-based software that we use on a daily basis, we have eliminated a fixed schedule, and all stakeholders make their own decisions as to when they work. This still requires a high degree of integrity on the part of everyone in the office, but putting a lot of our important data “in the cloud” has given us the freedom to make Working on the F.A.R.M. successful.

Conclusion

Web-based software has become a key component of a successful business model for our other business as a brand in the outdoor industry. It has saved us thousands of dollars in software updates, hourly IT costs and almost entirely eliminated any down time. As a result, we can work better, faster, cheaper and with less staff. It has made us more flexible and quicker to respond to the needs of our customers and co-workers. Much of our information is stored online and easily accessible by all employees when it makes sense for them, thereby eliminating unnecessary meetings and confusion.

In future posts, I’ll be examining the key tools we use, how we use them and how to set them up. Stay tuned. I hope you like it.

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