Are you looking to start a cloud computing business? here is a complete guide to starting a cloud computing business with no cost or expertise .
Ok, so we’ve provided you with a detailed example of a cloud computing business plan template. We also took it a step further by analyzing and writing a sample cloud computing marketing plan backed by actionable guerrilla marketing ideas for cloud computing companies. In this article, we are going to go over all the requirements for starting a cloud computing business. So put on your entrepreneur hat and let’s move on.
Why start a cloud computing business?
If you are ICT-inclined and looking for a business for a budding entrepreneur, you don’t have to look far as there are many businesses in the industry that you can start successfully and one of them is a cloud computing company.
Cloud computing is a new concept in paradigm computing that includes an information technology infrastructure and software delivered directly over the Internet as a service. It is an agreement that allows companies to extend their network bandwidth and run applications directly on the provider’s network; it offers many advantages and significantly reduces IT costs. Reduced budget requirements and commitments allow even small businesses to build an IT project without having to purchase legacy servers and storage systems.
In addition, the burden of developing and maintaining the technological expertise required to operate the network is shifted to the service provider. Pay-as-you-go cloud computing platform helps transform IT departments to build and deploy custom applications in these tough times.
Offering a more cost-effective, less risky, and fundamentally faster alternative to website development, cloud computing is set to transform the information technology economy over the next few years.
Since the Internet is the foundation of cloud computing, the term “cloud” is used as a metaphor for the Internet. With new and improved networks, the Internet is rapidly becoming a means of meeting computing needs. The pervasiveness of the Internet and high-speed broadband access are the main drivers of the transition to the cloud.
So, if you have taken the relevant ICT courses, you might want to venture into this business. If you’ve started to build your own cloud computing business, but don’t know how to do it, you should consider the next steps that this article promises to give you.
Getting Started in Cloud Computing A The Complete Guide
- Industry overview
The global cloud storage market is expected to grow from $ 18.87 billion in 2015 to $ 65.41 billion. by 2021 at a compound annual growth rate (CAGR) of 28.2%. The cloud storage solution and services are currently offered by many vendors such as IBM, Microsoft, Google, Amazon Web Services, VMware, Box, Fujitsu, RackSpace, ATT and HP.
These vendors sell options for cloud storage solutions and managed services. However, there is a price war between these cloud storage providers around the world as they continue to steadily lower prices and increase storage capacity.
Storage solutions evolve as more companies enter the market. and offer advanced storage solutions at minimal cost. The first digital storage device was introduced in 1890 when Herman Hollerith, founder of the Tabulation Machine Company, used punch cards to read and write data. Thus, the storage market has evolved, and in this scenario, user can store up to 1GB of data for free in the cloud and access it from any remote location.
Factors such as the growing demand for big data storage and the growing adoption of cloud storage gateways are driving the demand for cloud storage solutions around the world. The cloud storage market has been segmented by type of solution and service; based on core storage solutions, backup solutions, cloud storage solutions and data movement and access solutions; on the basis of advisory services, systems and network integration, as well as support for training and education.
Cloud storage gives users immediate access to a wide variety of resources and applications hosted in another organization’s infrastructure through a web service interface. Cloud storage can be used to copy virtual machine images from the cloud to local locations or to import a virtual machine image from a local location to a cloud image library.
Additionally, cloud storage can be used to move virtual machine images between user accounts or between data centers. Cloud storage can be used as a backup in the event of a natural disaster, as there are usually 2-3 different backup servers in different locations around the world.
Users access cloud computing through networked client devices such as desktops, laptops, tablets, and smartphones, as well as internet-enabled devices such as home automation gadgets. Some of these devices – cloud clients – rely on cloud computing for all or most of their applications, so they are virtually useless without them.
Some of the factors that push entrepreneurs to start their own cloud computing business may be a growing recognition of the economic and operational benefits and efficiency of the cloud computing model, which promises strong future growth. As businesses gradually shed economic uncertainty and financial pressures, widespread adoption of cloud services is imminent. The pragmatic and successful adoption of this technology concept by early adopters will pave the way for mass adoption by businesses in the years to come.
Businesses’ shift from virtual machines to the cloud will further increase the momentum needed for rapid growth. To maximize the benefits, end-to-end cloud solutions will be created that provide full functionality including, but not limited to, internal and external cloud integration, automation of business-critical tasks and l ‘optimization of activities and workflows.
In addition, starting a cloud computing business requires professionalism and a good understanding of the ICT industry. In addition, you will need to obtain the required certifications and licenses and meet the standard security requirements expected by industry players in the United States; the industry has highly regulated measures to combat fraud and crime.
Beginning of enterprise IT in cloud market and feasibility studies
- Demography and psychography
The demographic and psychographic makeup of those who need the services of a cloud computing business is not limited to the people and organizations in your immediate community or state, but encompasses the people and organizations who have one or more things to do. with Internet from around the world. This is because cloud computing is an internet business, so it works for people and organizations all over the world.
So if you want to define the demographics of your cloud computing business, you need to encompass everything. It should include people and organizations focused on companies in the US and abroad, that do business in the 21 first century.
List of Cloud Computing Niche Ideas You May Specialize in
cloud computing in general is a hosted infrastructure; it uses the Internet to provide IT services, thus eliminating capital expenditure (CAPEX) on infrastructure. It also helps enable consumption-based billing and indicates increasing adoption in a number of end-use industries, including government organizations.
This should become the main driver of the market in the coming years. Security, privacy and data access issues are major constraints to the growth of the market as they can have a negative impact on the performance of the company. Niches or ideas that may set you apart in this vast industry include:
- Medical cloud computing
- cloud computing on social networks
- cloud computing consulting
- Cloud computing for large companies
- Cloud computing for small businesses
- Cloud computing for universities
- Cloud storage and IT taxes etc.
The level of competition in the cloud computing industry
The level of competition in the cloud computing industry does not depend on the location of the business in any way, as all cloud computing companies can operate from any part of the world and remain competitive in the global market.
When it comes to cloud computing services, distance is never an obstacle. when competing for customers, especially international customers. Most customers (home and business alike want secure, reliable and uninterrupted service), so they are ready to hire the services of a cloud computing company no matter where in the world they work, provided they have good track record and can provide excellent results in smooth data transfer and security, among other services.
But beyond that, there are several cloud computing companies dotted around the United States and across cyberspace. Therefore, if you choose to start your own cloud computing business in the United States, you will surely encounter tougher competition not only among cloud computing companies in the United States but around the world. Also, there are bigger cloud companies setting trends in the industry, and you need to be prepared to compete with them for customers.
List of well-known brands in the cloud computing industry
In all sectors, there are always brands that perform better or are better perceived by customers and the general public than others. Some of these brands are the ones that have been in the industry for a long time and therefore are known for it, while others are more known for the way they treat their customers.
Here are some of the top cloud computing companies. / brands in the United States of America and around the world;
- Akamai Technologies Inc.
- Amazon Web Services LLC
- CA Technologies
- Dell Inc.
- Flexiant Ltd.
- Google Inc.
- Hewlett-Packard Development Company LP
- IBM Corporation
- Joyent Inc.
- KloudData Inc.
- Layered Technologies Inc.
- Microsoft Corporation
- Netsuite Inc.
- Novell Inc.
- OpSource Inc.
- Oracle Corporation
- Rackspace Hosting Inc.
- Red Hat Inc.
- com Inc.
- Skytap Inc.
- Terremark Worldwide Inc.
- Yahoo! Inc.
One of the innovations driven by the need to reduce operating costs is cloud storage and hosting. Cloud computing enables companies to reduce their overhead costs by virtually managing the IT aspects of their business.
Cloud computing allows you to outsource the IT aspects of your business to third-party vendors while focusing on other aspects of your business, such as beating your competition and increasing your bottom line.
The services or applications that organizations migrate to the cloud are highly dependent on company size and industry. For example, storage is the primary service for 40% of small businesses and 35% of midsize businesses, while large enterprises and the federal government primarily look to the cloud for conferencing and collaboration applications (40% and 39%, respectively). Businesses are also looking to the cloud for messaging, office and productivity applications, and applications for business processes and computing power.
However, lowering IT operating costs is just one of the many benefits of cloud computing, according to cloud users surveyed by CDW. increased innovation capacity (32%) and freeing up existing IT staff for other projects (31%) are key benefits. …
Reducing IT operational costs is fifth on the benefit list (25%). Business transactions often have to balance fixed costs, inventory and intangible assets, and unforeseen operating costs. Fixed costs can include information processing, file retrieval, and data storage. Before the advent of modern information technology, space was needed to tidy up cabinets and store documents in boxes or containers.
The increase in electronic storage capacity and the impact of the Internet on business transactions have many advantages for improving data processing. Instead of paying rent for a building or storage, businesses now have the option of paying for cloud server storage.
The cost of a cloud server is much less than the cost of renting or paying for physical funds. which also requires maintenance and financial investment, often of several people to take care of the goods and documents.
Build your cloud business from scratch instead of buying a franchise
When it comes to starting such a business, you have to pay to buy a franchise from a successful cloud computing company / brand rather than starting from scratch. While it is expensive to buy a cloud computing business franchise, it will definitely pay off in the long run.
While the term “cloud computing” is new, the concept of business-to-business and enterprise sharing between secure, remote and centralized data centers has been around since the mid-2060s (some say “time sharing”). In the full sense of the word, cloud computing today emphasizes travel. Paradigms ranging from local office computer systems in place to an “IT service” model in which shared and scalable IT infrastructure, software and business processes are delivered over the Internet on a monthly or annual basis.
This is why it is better to buy a franchise in this industry than to start from scratch, because unlike buying a franchise, buying a franchise gives you the following advantages; Easy access, integrated applications, flexible and scalable unified telephony and VOIP security.
Threats and potential challenges you will face when starting a cloud computing business
If you do decide to start your own cloud computing business today, one of the main challenges you are likely to face is having well established cloud computing companies that offer the same services that you intend. to offer. The only way to avoid this problem is to create your own market.
Some of the other threats you are likely to face when a cloud computing company operates in the United States are adverse government policies, the emergence of a competitor. in your region of activity and the global economic downturn, which generally affects purchasing / purchasing power. There is virtually nothing you can do about these threats except to be optimistic that everything will work for you.
Beginning of legal practice in the field of cloud computing
- Best Legal Entity To Use In Cloud Computing Industry
When you plan to start a cloud computing business, the entity you choose will go a long way in determining the scale of the business; some cloud computing companies are developing their activities and services for the regional / community market, some for the national market and others for the international market.
Typically, you have the option of choosing a limited liability partnership, commonly known as LLC, or sole proprietorship for a business such as a cloud computing company. Usually, a full partnership should have been the ideal business structure for a small cloud computing business, especially if you’re just starting out with moderate start-up capital. But people prefer a limited liability company for obvious reasons.
In fact, if you intend to grow your business and have clients, both businesses and individuals, from all over the United States of America and other countries around the world, choose a full partnership. is not an option for you. A limited liability company, LLC will replace it for you.
For example, setting up an LLC protects you from personal liability. If something is wrong with the business, only the money you invest in the limited liability company is at risk; this is not the case for sole proprietorships and partnerships. Limited liability companies are simpler and more flexible to operate, and you don’t need a board of directors, shareholder meetings or other formal management formalities.
Here are some of the factors to consider before choosing a legal entity for your cloud computing company; limitation of personal liability, ease of transfer, acceptance of new owners and investor expectations, and of course taxes.
If you take the time to critically research the different legal entities that will be used for your cloud computing company, you will agree that a limited liability company; LLC is the most appropriate. You can start this type of business as a Limited Liability Company (LLC) and in the future turn it into a “C” corporation or an “S” corporation, especially if you are planning to go public.
Upgrading to “C” or “S” Corporation will give you the opportunity to expand your cloud computing business to compete with major industry players; you will be able to receive capital from venture capital firms, you will have a separate tax structure and you can easily transfer ownership of the business; you will benefit from flexibility in ownership and in your management structures.
Catchy Business Name Ideas Suitable For A Cloud Computing Business
Usually, when it comes to choosing a name for a business, you have to be creative. because the name you choose for your business will go a long way in creating an idea of what the business is all about.
Usually people follow the trend of the industry they are going to work in by giving their name. Business. If you are planning to start your own cloud computing business, here are a few catchy names you can choose from:
- Santa Fe Cloud Computing Company, LLC
- Andrew Chris ICT Company, TOO
- Triple Gee Technologies, LLC
- Cast ICT Solutions, Inc.
- Periscope Cloud Computing, LLC
- Little Joe Co Group, TROP
- Orange ICT World Wide, Inc.
- Dane Damply ICT Services Co.
- Space Wagon ICT Corporation, Inc.
- Prime Edge ICT Consulting, Inc.
- Kent Bush Cloud Computing Company
- Binary ICT Solutions Ltd.
In the United States and most countries around the world, you cannot run a business without some of the basic insurance policies required by the industry you want to work in. Hence, it is necessary to budget for insurance policies and perhaps consult an insurance broker to help you choose the most suitable insurance policies for your cloud computing business.
Here are some of the main types of insurance you should consider when buying if you want to start your own cloud computing business in the United States of America;
- general insurance
- health insurance
- Liability insurance
- Workers compensation
- General disability insurance
- Group insurance for business owners
- Payment protection insurance
- EO insurance.
- Cyber Liability Insurance (data breach insurance).
- Insurance of loyalty obligations.
- Professional liability insurance.
Protection of intellectual property rights / registered trademarks
IT professionals know that sharing data with third parties is always risky, but cloud storage and hosting poses unique challenges for intellectual property. Protecting your intellectual property can be stressful, but in today’s world where ideas and patents are stolen daily, you need to think about protecting yours. hard-won intellectual property rights
If you want to protect your intellectual property; Company logo and other documents or software of your own, or even jingles and multimedia production concepts, then you can apply for intellectual property protection. If you want to register your trademark, you must begin the process by filing an application with the USPTO. The final approval of your mark is subject to legal review, as required by the USPTO.
Do you need professional certification to run a cloud computing business?
Beyond the results you get, professional certifications among key employees are one of the main reasons most cloud companies stand out. If you want to make an impact on the cloud computing industry, you should strive to achieve all the required certifications in your area of specialization.
We strongly recommend that you obtain professional certifications; this will allow you to show your commitment to the company. Here are some of the certifications you can aspire to if you want to start your own cloud computing business;
- CCSK Cloud Security Alliance
- Cloud U – Rackspace
- CompTIA Cloud Essentials Comp TIA
- Cloud Professional certified CloudSchool.com
- IBM Cloud Solution Architect v1 and v3 certified – IBM
- com is a Certified Salesforce Professional. com
- VMware Certified Specialist – Vmware
- Red Hat Infrastructure as a Service Experience Red Hat
Please note that the higher your qualifications and experience (experience), the easier it is for you to enter into high-level cloud computing agreements with corporate clients.
List of legal documents required to run a cloud computing business
The essence of having the necessary documentation before starting a business in the United States of America cannot be overstated. It is a fact that you cannot conduct business successfully in the United States without proper documentation. If you do this, it won’t be long before the long arm of the law reaches you.
Here are some of the basic legal documents you need to have if you want to legally run your own cloud computing business in the United States of America;
- Certificate of incorporation
- Commercial license and certification
- Business plan
- Non-disclosure agreement
- Employment contract (letters with proposals)
- Operating Agreement for LLC
- Insurance policy
- Contractual consultation documents
- Apostille (for those intending to work outside the United States of America)
- VAT registration
- federal tax identification number
Finance your cloud computing business
Without a doubt, when it comes to financing a business, one of the first and perhaps the main factor to consider is writing a good business plan. If you have a good, viable business plan document, you may not have to work on your own before convincing your bank, investors, and friends to invest in your business.
Here are some of the options you can use when finding start-up capital for your cloud computing business;
- Collect money from personal savings and sell personal stocks and property
- Raise funds from investors and business partners
- Sale of shares to interested investors
- Apply for a loan from your bank / banks
- Transfer your business idea and apply for business grants and seed funding from donor organizations and angel investors
- Source of loans on favorable terms from your family and friends.
Choosing the right location for your cloud computing business
The cloud computing industry and most ICT service companies don’t necessarily require you to physically communicate with customers, so they are located anywhere as most of your business transactions take place over the Internet.
Just because you can run your cloud computing business from your home doesn’t mean that location doesn’t have much to do with the success of a cloud computing business. If you have taken the time to research the cloud computing industry and the ICT service provider sector, you will find that the players in this sector are willing to pay very high rent to stay in a neighborhood. business or busy ICT center; a place where business and ICT activities are at their peak.
It cannot be overstated that the location you choose to open your cloud computing business is the key to business success, so entrepreneurs are willing to rent or lease a facility in a visible location; a place where the demographics are made up of people with the necessary purchasing power and lifestyle.
If you make the mistake of renting or leasing a facility for your cloud computing business in an inconspicuous or hidden location just because it’s cheap, then you should be prepared to spend more to promote your business and possibly donate money. directions to potential clients.
It’s important to note that a well-located business center doesn’t come cheap, so you should be able to set aside enough leasing / rental funds within your budget. If you are new to the dynamics of choosing a business location such as a cloud computing company, then you may want to chat with a business consultant or real estate agent who fully understands the city and possibly the country that you have. intends to launch in the cloud. computer company.
So, if you are looking for a location for your cloud computing business, make sure the location is in the business district / ICT hub of your city, a visible and easily accessible location. Of course, you don’t want to locate this type of business on the outskirts of town.
Your customers should be able to travel and find your office with little or no difficulty. Sellers should also be able to easily locate your office when they need to submit their bids / offers, documents or to check their background etc.
Getting started with Cloud technical talent
Cloud storage is based on a highly virtualized infrastructure and is similar to larger cloud computing in terms of accessible interfaces, near-instant elasticity and scalability, multi-tenancy, and measured resources. Cloud storage services can be consumed from an on-premises service (Amazon S3) or deployed on-premises. Cloud storage generally refers to a hosted object storage service, but the term has been extended to include other types of data stores that are now available as a service, such as bulk storage.
Cloud computing resources can be quickly provisioned and freed up with minimal management effort or interaction with a service provider. This means that an organization can use more or less servers, storage, applications, or services, and can also customize the ones it uses to meet its needs when it wants and with little effort. Cloud computing has five main characteristics.
These are on-demand self-service, wide area network access, resource pooling, rapid elasticity, and measurable service. These features set it apart from other computer models. Has three service models. The main types of services provided by cloud service providers are: Infrastructure as a Service (IaaS), Platform as a Service (PaaS), and Software as a Service (SaaS).
When it comes to choosing between leasing and leasing office space, the size of the cloud computing business you want to start and your overall business budget should influence your choice. If you have enough capital to run a standard cloud computing business, you should consider renting space for your office; When you hire, you’ll be able to work with long-term planning, structuring, and expansion.
As for how many employees you are supposed to start a business with, you will need to consider your finances before making a decision. On average, you will need a CEO or President (you can fill this position), Administrator and Human Resources Manager, Educational Consultants, ICT Consultants, a marketing / business development manager, a customer service or front desk manager and an accountant. as well as an accountant.
Additionally, you will need a minimum of 8 key employees to effectively run a mid-size but standard cloud business.
Service delivery process involved in a cloud computing business
The widespread adoption of cloud computing is made possible by the Internet, and it is the most common way to access cloud resources. Intranets and dedicated networks are sometimes also used in the case of a private cloud. When you connect to cloud hosting, these server farms behave as one large storage space and processor.
Actual website data (such as HTML / CSS files, images, etc.) Distributed over a cluster of hard drives. connected together, just like a virtual disk with huge capacity. Server clusters can provide cloud-based customization with literally unlimited machines to browse. You can also create cloud space in as little as 5-10 so that the methodology is scalable for uploading.
You might be wondering how the combination of multiple server environments will evolve as the size of any cloud system grows. The allocation of power and storage capacity is often controlled by the operating system / backend. The server administrator will be able to log in to the server side through the terminal and check the CPU usage of all machines, as well as other important system information.
This process is called virtualization, which provides a layer of abstraction between software and hardware components. Cloud server administrators can easily optimize the cluster for improved storage efficiency, optimal power consumption, data backup, etc.
It is important to clarify that a cloud computing company can choose to improvise or adopt any business process and structure that will ensure efficiency and flexibility; The above business services process is not cast in stone.
Starting a cloud computing business. Marketing plan
- Marketing ideas and strategies
As a cloud computing company, you will have to prove your worth several times before you can get cloud computing contracts from corporate customers. So, if you are planning to start your own cloud computing business, you will first need to build a successful career in the ICT industry.
People and organizations will hire your services to help them keep up with all of their cloud computing. it is necessary if they know they will get benefits for their money.
So, when developing your marketing plans and strategies for your cloud computing business, make sure you create a compelling personal and business profile. In addition to your qualifications and experience, it is important to be clear in practice what you have been able to achieve in the meantime in terms of cloud computing services and the organizations you have worked for.
It will help you to increase your chances in the market when looking for cloud computing contracts etc. Please note that in most cases when submitting cloud computing offers to corporate organizations, you will be asked to defend your offer and therefore you should be satisfied good with presentations.
Here are some of the platforms you can use to promote your cloud computing services;
- Introduce your business by sending cover letters along with your brochure to all corporate organizations, small businesses and the international business community in the United States
- Agility in the demand for cloud computing contracts from companies
- Promote your business in relevant ICT magazines, radio stations and TV channels (provide access to talk shows and interactive sessions on ICT on TV and radio)
- List your businesses on local directories / yellow pages
- Attend international exhibitions, seminars, ICT trade fairs, etc.
- Create different packages for different categories of customers to work with their budgets.
- Use the internet to promote your business (when you write regularly on key issues related to your business, people will see you as an expert in the field)
- Join local chambers of commerce and industries around you for the primary purpose of networking and marketing your services; Most likely, you will receive referrals from these networks.
- Use the services of marketers and business developers to conduct direct marketing
Strategies to build brand awareness in cloud computing and create a corporate identity
If you are in business and you don’t intend to build brand awareness and spread your corporate identity, you need to be prepared to accept what the company means to your business. One of the secrets of great companies is that they are willing to spend a fortune year after year to increase their brand awareness and continue to convey their corporate identity the way they want people to see it.
If you are intending to start a cloud computing business to grow a business outside the city that you intend to work from to become a national and international brand, you must be prepared to spend some money. money to promote and promote your brand.
When promoting your brand and corporate identity, you should use both print and electronic media, as well as social (internet) media. In fact, using the internet and social media platforms to promote your brands is beneficial and it is also quite effective and widespread.
Another strategy is to sponsor relevant community programs, TV and radio programs, to advertise your business in relevant magazines and newspapers. Below are the platforms you can use to promote your brand and promote and advertise your business;
- Advertise in ICT magazines and related newspapers, radio and television stations.
- Encourage the use of word of mouth advertising from your repeat customers.
- Use on the Internet and social networks such as; YouTube, Instagram, Facebook, Twitter, LinkedIn, Snapchat, Badoo, Google+ and other platforms to promote your business.
- Make sure to place your banners and billboards in strategic positions throughout your city.
- Distribute leaflets and flyers to targeted areas in and around your area.
- Connect with professional organizations, small businesses and the international business community, and more by calling them and letting them know about your organization and the cloud. the IT services you offer.
- Promote your business on your official website and apply strategies that will help drive traffic to your website
- Mark all of your official vehicles and make sure all of our staff and management regularly wear your branded shirts or caps.