The IT atmosphere in small and medium businesses is changing and cloud computing is the new frontier—an exciting frontier.

Cloud is a series of application servers in remote locations accessible on the Internet that enables dissemination of communications, computations and data storage. It not only saves money, but boosts productivity for small and big companies alike. The cloud’s impact on small businesses is even more meaningful. Cloud actually reduces, if not eliminates, the need for a company to own expensive hardware. As more and more SMB are using cloud, they are gaining access to more applications, such as the weather, radio, and e-mail, according to analysts.

Jascha Wanger, Chief Cloud Architect at Cloud Condor, an on-demand provider of cloud consulting for small and medium business said, “Our clients see an average cost savings of more than 30%.”

Cloud communication solutions can deliver capabilities to meet the rapidly changing communications needs of enterprises. Traditionally, businesses of all sizes have on-site hardware, licensed software and IT staff for data processing, data storage and other services. Today Amazon and others provide huge computing capacity on the cloud that vastly reduces the need for companies to own computer hardware. A new breed of companies offers Software as a Service (SaaS) to businesses that are hosted in the cloud. “The cost benefit to small businesses of using SaaS is significant,” Wanger said.

So for Cloud service providers, it’s not just about cost savings and increased productivity. Cloud providers supply small medium companies the ability to upgrade technological upgrades, and provide work flexibility for employees.