Most small-business owners don’t realize this yet, but a mother lode of technology that can free precious cash and manpower is available to them as in no other time in history.
Small firms typically buy basic clerical and accounting software in shrink-wrap boxes and run them on a company computer. The owner, or a harried employee, invariably gets pressed into service as resident tech expert.
But today, they can tap into a swelling portfolio of business applications residing in far-off computer servers. These programs come down from the Internet cloud, sent by a growing army of software companies eager to deliver powerful tools to Web browsers in laptops, netbooks and smartphones. Users pay as they use.
So-called software-as-a-service, or SaaS, has long been available to big companies. Now that computing power has become dirt cheap and Internet usage ubiquitous, software developers are racing to put cutting-edge business apps into the hands of small firms in ways that could give a lift to the economic recovery.
“We’re entering an entirely new paradigm,” says Marc Benioff, CEO of Salesforce.com, a San Francisco-based supplier of programs that manage customer relations. “It’s fantastic for small business, because software-as-a-service gives them a whole new level of capabilities.”
Services such as Speakeasy, Concur Breeze and Avalara have cropped up to manage Internet phone systems, do expense and travel accounting, and handle complex sales-tax payments for small firms. For modest fees, these suppliers assume the burden of keeping programs updated, secure and readily accessible. “This technology allows you to do more with less,” says Bruce Chatterley, CEO of Speakeasy, a Seattle-based supplier of Internet phone systems. “Small business can now go toe-to-toe with big business.”
The trend has grabbed the attention of the tech giants. Microsoft and IBM have begun hustling to prepare a new generation of hosted services, tuned for small businesses…