A recent article in the Wall Street Journal reports that small businesses are increasingly turning to cloud-based solutions – a fundamental shift in how they acquire and use technology. According to software maker Intuit, businesses with fewer than 20 employees spend approximately $630 on software in 2014 – up from $590 in 2013. Intuit also notes that eighty-five percent of small businesses are planning to increase their investments in cloud-based software in the next five years. HOSTING breaks down the reasons why they are making the switch.
Cloud-based solutions offer small businesses mobility, flexibility and scalability
Emerging from the dark days of the “Great Recession” five years ago, the average small business began to make technology investments, albeit cautiously. According to Tim Harmon, a principal analyst at Forrester Research Inc., many business owners “remained wary of cloud technology” – upgrading existing systems seemed like a safer bet.
Even though many small businesses have brick-and-mortar locations, they realize that having the ability to conduct business anytime, anywhere and from any mobile device gives them an advantage. Rather than purchase software to load onto their back office computers, they want to access data and applications from their mobile devices via cloud hosting solutions.
Thanks to a booming U.S. economy, and many emerging companies – particularly those who want to operate from multiple locations – are taking advantage of the flexibilty and scalability that cloud-based solutions provide. Emergent Research, which tracks technology use by small firms, estimates that 78% of small businesses will adopt cloud-based applications by 2020, up from almost 37% today.
Cloud security is a chief concern of SMBs
Many small businesses have been wary of the cloud since they lack dedicated technology teams. Without tech expertise on staff, they struggle to determine their business technology needs.
At the same time, security is a serious concern – particularly exposure to data breaches. According to a recent survey of the National Small Business Association, half of the 675 small businesses surveyed said that their business data was breached due to a cyber attack within the past five years. The average estimated cost of a a cyber attack jumped to $20,750, up from $8,699 in 2013 – an expense that many small businesses can’t afford to absorb.
HOSTING cloud hosting solutions
The HOSTING team of cloud experts understands the unique needs of emerging companies. They craft custom solutions that allow small and midsize businesses to leverage the flexibility, mobility and agility of the cloud while ensuring business-critical data remains secure. Wherever you are in your business journey, we stand ready to help. Contact us to learn how HOSTING can help guide you to cloud success. You can also download our complimentary report, 20 Questions to Ask When Selecting a Cloud Service Provider, for more information.