San Francisco serial entrepreneur Peter Yared was tired of spending thousands of dollars on computer servers and the gold-plated IT folks who run them. So this past April, when he launched wdgtbldr (that’s widget builder, severely compressed), a Web service that helps marketers create interactive ads, he wondered if the company could rely instead on Web-based software and hosting services. Much to his surprise, Yared found plenty of low-cost options, some of them even free. “I am amazed at how cheaply and easily all of the functions of a small business can be set up and shared by employees,” says Yared. The six-person company now uses 12 software services. Its monthly bill: $371.
No longer do small companies have to spring for servers and IT staff just to get the basics. With software services, you don’t install programs on your own computers or server. Instead, you sign up online for software and use it while you’re connected to the Internet. You store your files in the service provider’s data center, with security features that ensure that only you and your employees give access to them. The provider is responsible for running all the software and hardware and fixing any problem that crops up. The only thing you need to do is maintain a good Internet connection.
Many of these new software services were spawned as alternatives to the most popular programs from Microsoft. A company can use Gmail instead of Microsoft Outlook, or Google Docs instead of Office. Basecamp can be used for project management instead of Microsoft’s Project. Not to be outflanked, Microsoft has responded with Microsoft Office Live Small Business, its own collection of Web-based software services, including business e-mail, Web hosting, and accounting.
Whoever the provider, the services are getting popular. About 27% of small and midsize businesses are using at least one software service this year, up from 9% in 2006, and 17% use two or more, according to Saugatuck Technology, a Westport (Conn.) market research firm.
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Photo by Stephen Webster.
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February 1, 2008 by Rich | 6 Comments
In Entrepreneurs, Internet, Strategy
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etavitom on February 1st, 2008 at 12:39 pm
cool post. thanks for the info!
toksee on February 1st, 2008 at 1:54 pm
This area is a goldmine for small businesses. With the plethora of free and inexpensive services available, a small business can establish a web presence and the start marketing their business online on a shoestring.
The same technology that allows big business to operate globally is available to small business at a fraction of the cost.
Great post!
keronii on February 1st, 2008 at 4:20 pm
Very useful. thx
Carrie on February 2nd, 2008 at 3:40 pm
Wow, this article is very interesting and informative. I wonder if there is a list of the companies which provide such services? I can think of a few software applications I would like to start using over the web.
Diseño web ProfesionalNet on February 3rd, 2008 at 12:42 pm
Desde España, Madrid, gracias por tu blog.
Cool post. thanks for the info!
ProfesionalNet
Homeboy's Skiing Blog on February 6th, 2008 at 3:59 am
This is interesting. For long time we have been aware that there is no need to invest much in software, but buying software as a service with so low price is new to me. I think I need to dig deeper into this because, as a start-up company, we could also save some costs.