Companies Spending More on Cloud Computing, Survey Says
A new survey shows more companies are planning to spend more when it comes to cloud computing. While there are security concerns about cloud implementation, it's an important step for business growth and productivity, especially for any small and midsized business.
According to a recent article published by CIO regarding the IDG Enterprise Survey, 6 out of 10 U.S. companies already have at least one application in the cloud, and 71 percent expect to increase spending on cloud services in the next year. The IT professionals who took the recent IDG Enterprise survey mostly agreed, at 64 percent, that it may be expensive up front but in the long term, it's the most cost efficient.
The reasons for this upward trend make sense. Eighty-four percent of the survey respondents cited business continuity as the top business driver for their cloud investments. They also cited other reasons like speed of deployment, gaining the flexibility to react to market conditions, and improving customer support.
Just like the enterprise, small and midsize businesses will follow this trend too because they are looking for the same outcome when it comes to the implementing a cloud solution. They also want business continuation, greater data consistency, and integration. According to AMI's World Wide Cloud Services Study, published in CRN last year, small and midsize business spending on cloud computing will approach $100 billion by 2014.
Cloud-based services are getting a bigger chunk of the budgets at smaller companies for many reasons. Many of these smaller companies delayed upgrading their IT during the recession. However, they are starting to see business grow once again and for them that means focusing on investing money where there's great returns. As such spending rises, smaller companies are also more likely to pursue multiple bundled cloud services, rather than single stand-alone applications.
For any company, security will always be a main concern in this day and age. But companies, especially small and midsize businesses, must take on the challenge of tackling those concerns by thoroughly analyzing the security needs then implementing the right security measures. There is no magic formula. Data in the cloud is different for all companies, so security needs are always going to differ.
On the other side, tech providers can encourage small and midsize businesses by offering a wide ecosystem of channel and communication partners enabling companies to align their IT goals with the right growth strategy. It's also up to providers to articulate the real value cloud computing can provide.
With the help of tech providers and a focus on security, smaller firms will continue to boost their budgets for cloud software this year and in the future simply because it makes good business sense. Cloud computing offers smaller businesses access to scalable resources and, most importantly, the chance to improve their IT in ways they couldn't before.
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.