Undeniably, the Australian economic and political environment has pivoted greatly over the last twelve months. In the transition from a mining-led economy to one which is increasingly driven by technology, Australia’s voyage to be more innovative has led to significant changes in the country. These alterations are sieving down to small business as entrepreneurs adapt their business models for the technology boom.
In particular, cloud computing has become one of technology’s hottest topics and small businesses are using cloud software to speed innovation. Cloud computing can be defined as an Internet based computing where storing, access to data and programs are achieved through the Internet instead of computer’s hard drive. In comparison to larger corporate companies, the cloud has actually allowed for a faster transition to enterprise grade technologies for smaller companies. We are now ingrained in the cloud adoption curve and small business owners are utilising cloud-based applications to track everything from accounting and storage, to payroll, job management and marketing. Indeed, the cloud is creating a foundation that allows for the linking of services and data in order to create new and innovative applications or business processes.
Thus, from a technology that was initially adopted for efficiency and cost savings, the cloud has emerged into a powerhouse of innovation throughout organisations. Research and development (R&D) teams can also use cloud computing to accelerate development operations and achieve efficiency. For instance, one of the foremost benefits of cloud computing is that it globalises the workforce at a low expense. Other benefits include a reduction of expenditure on technology infrastructure, the streamlining of processes, improved flexibility, reduction of personnel training burden, cost effective and almost unlimited storage. In particular, storing massive data associated with research is difficult for local storage to take up which can be easily resolved by cloud computing.
Certainly, by automating tasks which were previously a time drain on business owners, there’s more space for small businesses to work on growth activities. This is particularly important as small businesses are a key apparatus of the Australian economy; they generate more than 40% of GDP and are vital job creators. Since the government seeks to build a sustainable and viable technology industry in Australia, small companies could certainly aid in the advancement of this. Hence, by enabling them to grow more sustainably and efficiently, the cloud is one technology trend in 2016 that could prove extremely useful in the advancement of innovation.
Have you conducted innovative activities? If you’re a small business who has been involved in research and development (R&D) undertakings, you could be eligible for generous tax benefits. Contact Swanson Reed Specialist R&D Tax Advisors for more information.