Some of these you know about already. There’s nothing new about doing business banking online, or using an Internet meeting service like Microsoft LiveMeeting, Citrix’s GoToMeeting or Webex for online collaboration with customers and business partners.

Most small businesses are also aware email can be hosted by a third party like an ISP or a telecommunications company. Hosted email is centrally managed, accessed with a web browser, and can be sent out to a number of devices – including desktop PCs, laptops and smart phones – at the same time. You may also be aware you can use an online service provider to remotely initiate PC and server data backups or to remotely monitor your business network using an Internet connection. Many ISPs and other support specialists offer these services.

Less well known is the availability of online software for accounting, payroll, CRM, and sales force processing. Traditionally, small businesses have needed to install such software on their own systems and pay up-front licensing and maintenance fees. But when an application is available as an online service – a model known as Software as a Service or SaaS – ownership and maintenance of the software application is left to the SaaS provider and the customer simply uses it. Information specific to each business is then stored securely by the SaaS provider in a data centre (often located offshore) and can be accessed by the customer anywhere, anytime via a web browser and secure log in procedures. The customer pays a monthly subscription fee for the service so there are no up-front capital costs and no need to maintain the software or back up information. An additional benefit is that SaaS services are typically charged on a per-user basis, meaning the service can be scaled up or down according to changes in the business.

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