Business and Tax Lawyer Blog

A recent article in the TheStreet, an internet magazine focused on the world of investment, finance and business, reported that IBM would be expanding its “cloud offerings for business users” through the purchase of DemandTec in the first quarter of 2012. This follows news in early December regarding SAP’s purchase of SuccessFactors and Oracle’s October purchase of RightNow. The article noted the trend toward acquiring cloud-based marketing pricing and analytics companies, reporting that “Cloud based businesses and analytic abilities are becoming increasing important to IT services and software giants as consumers and businesses make more Smartphone-based decisions using mobile networks.” To read more about those trends see IBM Pays More Than SAP and Oracle for Cloud Growth (Update 1).

So, what is Cloud computing? Some describe the Cloud as “virtual servers” available over the internet. Some describe the Cloud as any server outside of your local area network’s firewall. Cloud computing arises when you are going to provide for your business’ computing needs via the internet through a subscription-based or on pay-per-use basis or on a third party contract basis. Not only are you going to access your “virtual servers” via the Cloud, but you may also receive access to full service IT applications, data storage, software, data security, business analytics specific to your industry, real-time access to Vendors, digital access to your customers and assorted sales tools. The available software products are expanding rapidly as mid-sized to large IT and software companies line up to “cash in” on the growing Smartphone and Tablet appetite of consumers.

So how can doing business in the Cloud positively impact your business? Do some research within your industry and with other business owners you trust to find out what your options may be. Contact various Cloud service providers and ask how they can support and improve your business model. Ask how each Provider’s product can increase your business’ capability or customer access without investing in costly new infrastructure, staffing or equipment. Ask what type of customer support they will provide in training your staff and maintaining your system. Ask what type of “downtime” you may be facing and how they will minimize the risk of downtime. Ask about server security and where the data will be stored – is there redundancy in data storage to prevent loss in the event of a natural disaster impacting the Cloud or your own business. Ask what happens when your contract with the Cloud provider ends or is terminated early.

Running a business takes a lot of energy and often we can become imbedded in the way we have done business in the past. However, most business owners have a wealth of knowledge in the people surrounding them - - take the time to check out what your competitors are offering with regard to accessibility via the internet. Ask your sales and service people if they think there are better ways to do business using internet based tools. Ask your accounts receivable and accounts payable people if they have seen internet tools used by other companies that could be beneficial to your own business. Ask your staff members and interns to brainstorm how internet based tools could grow your business, reduce costs or offer better services or products.

When you are ready to launch into the Clouds, review your contractual obligations and provider warranties carefully. If you have questions or would like legal assistance in reviewing the documentation, contact a Florida business lawyer with Wood, Atter & Wolf, P.A.