Cloud Computing Disconnect Among SMBs

By | Oct 2, 2012

A recent survey found that most small and midsize businesses are lacking knowledge about cloud computing and that they are losing out. The survey found that small and midsize businesses that have embraced the cloud saw a revenue increase in the past year.

The survey, conducted by business software provider MYOB, found that 79 percent of small and midsize businesses are not using cloud technology and others admitted that they didn't know much about the cloud at all. CloudTimes featured an article about MYOB's survey conducted by Colmar Brunton, which showed that most of the 1,000 small and midsize businesses interviewed had a high degree of confusion about the cloud.

According to MYOB, cloud investments pay off. Those that are embracing the cloud are 53 percent more likely to see a revenue rise in the past year. Small and midsize businesses also expect their revenue to rise in the next year by 44 percent compared with the current 26 percent. They also plan to increase the prices and margins of good and services to 37 percent as compared with 25 percent.

Lost Potential

While there may be reports that say the cloud is on the rise among small and midsize businesses, MYOB's research shows there still is a gap and a disconnect in the market. Not all small and midsize businesses are embracing cloud technology even though taking time and resources to understand it can help them grow. The companies included in the survey say they haven't used the cloud usually due to a lack of knowledge and security concerns. Other companies cited that the cloud wasn't a major priority or that they didn't have the staff to implement the technology properly.

According to the article, four in five small and midsize businesses say they don't use the cloud for business. However, this can't be true since most companies do use the cloud for banking and email and may not realize it's all connected to the cloud. This again, points to the lack of knowledge of how ubiquitous the cloud is becoming.

This goes back to the fact that to truly implement the cloud properly means having the manpower and the knowledge base. For many small and midsize businesses today, managing vendors is tedious and time consuming. There needs to be more education and encouragement of cloud products and services across the channel and among vendors. Even if that doesn't go as fast as it could, the market will change. With time, small and midsize businesses will realize the cloud's worth as they adopt various cloud products and services.

The Future for SMBs

The result of not exploring the cloud options is a loss of great potential. The fact is, small and midsize businesses that embrace the cloud want to enhance communication and have learned that the cloud actually saves money and increases productivity.

The enterprise clearly has embraced the cloud and now the industry is at a point where others will be next in line to adopt it more openly, including small and midsized businesses. The fact is, the cloud offers the opportunity to access the computing power of much larger corporations at a fraction of the cost. As time goes on small and midsize businesses will see the cloud as increasingly more important to business.

This post was written as part of the IBM for Midsize Business program, which provides midsize businesses with the tools, expertise and solutions they need to become engines of a smarter planet. Like us on Facebook. Follow us on Twitter.

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