SaaS, cloud computing, Web-based tools, on-demand -- there are a lot of nontraditional technology terms for smaller companies to stomach these days. But a closer look reveals that these tools can help small and midsize businesses save a lot of money and time. Analyst Laurie McCabe helps wade through the jargon.
A lot of changes are happening in the business world, so what's a small or midsize company to do? What do business owners need to know, what technology should they adopt, and how can they survive the economic crisis?
Laurie McCabe is a small-business market and technology analyst who recently joined the firm Hurwitz & Associates. Most of her research has focused on small-business use of the Internet and hosted, software-as-a-service (SaaS) solutions. Check out her blog here.
bMighty: What's the current mood among small and midsize businesses?
Laurie McCabe: Like everybody else, uncertainty is the new normal. I don't really think you can apply a blanket over everyone, because some businesses are more recession-proof than others, like attorneys, dental offices, medical. But small and midsize businesses are being very cautious right now. Even if you have a good business model, there are just so many wild cards out there.
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bMighty: Is there a certain technology smaller companies should adopt to streamline processes and save costs?
McCabe: They're not going to adopt anything right now unless there's a direct link to saving money or making money. It's business-dependent, but in general, it's looking at those that make you say, "Wow -- I'm going to make money or save money." Smaller companies are looking at things that are labor-saving. If they're doing anything manually or even electronically with a lot of functions, like Excel spreadsheets, or if it's project management -- if they can see there's going to be a benefit, it's going to get the job done, it will let them be more proactive, then that's a key thing they're going to hone in on.
The flip side is that for companies that have not yet put into place any way to automate and reach out to and engage prospects -- that should be high on their list. There's so much in social media and interactive marketing; if businesses aren't doing that, they're missing out on opportunities to engage customers. While you can't generalize across all small and midsize companies, we're going to see more entrepreneurs than ever, because all these big companies are laying people off, and people are going to put resumés into black holes, and after a few months, they're going to start going on their own. And they're going to be doing as much as they can with Web-based tools, because it's easier and cheaper. This horrible recession may be the thing that makes on-demand software go mainstream.
Next Page: What Is The Future Of Software-As-A-Service?
