Quite a few start-ups end up becoming up-starts, this is because a lot of the raw energy that a new idea brings about is spent in doing the peripheral activities to ensure the  idea sees the light of the  day, by the time the idea starts to take shape majority of start-ups lose their steam to march forward and close down.
One of the major distraction and a unhappy one for a young entrepreneur is IT management, the whole idea of buying hardware and managing a server room is both exhausting and time consuming. Ideally one would  like to test out an idea and if it does not work there should be an opening for a quick exit and you move onto the next idea.
Cloud computing today allows young and the restless entrepreneurs to devote majority of their time towards giving shape to  their brain-child, Microsoft's Office 365 is a great example of ready to use software that every organisation needs.
Office365 comprises of four basic workloads that every organisation needs to  conduct it's everyday work, it has Exchange Online for emailing, SharePoint Online ( Corporate Facebook) to collaborate among peers and to create workflows and intra-company portals. Lync Online allows intra-company chat as well as conducting online meetings, last but not the least is the Microsoft Office, the regular  Word ,Excel , powerpoint etc.which  we have been using since donkeys  years.
The beauty is that you can get all these services on a monthly subscription which means one can increase or decrease the number  of  subscription whenever we  want  besides not having to indulge in Capital Expenditure, one also  gets automatic upgrades with Online services ensuring that one is always on the  latest technology.

The reasons mentioned above makes for a compelling case for start-ups to adopt cloud, cut their IT costs, not be distracted by IT management and
free  themselves to concentrate on their core activity ensuring higher chances of success.