Microsoft Study Says 40% of SMBs to Go On Cloud within 3 Years

Microsoft Study Says 40% of SMBs to Go On Cloud within 3 Years

Microsoft, a major player in cloud computing with its Azure platform, released its global “SMB Cloud Adoption Study 2011” last week. The study was conducted to investigate the impact of cloud computing on small and medium businesses (SMBs), and the results are quite encouraging.

The study, conducted in conjunction with market research firm Edge Strategies, polled 3,258 SMBs with 250 or fewer employees in 16 countries – Australia, Canada, China, France, Germany, India, Japan, the Netherlands, Norway, Russia, Singapore, South Africa, South Korea, Spain, the U.K. and the U.S.

The results said that 39% of SMBs expect to be paying for one or more cloud services within three years, an increase of 34% from the current figure of 29%. Additionally, these firms will be using 3.3 services on the average, up from fewer than two services today. Larger firms showed a marked preference for cloud computing than their smaller counterparts, with 56 percent of companies with 51 to 250 employees expecting to pay for an average of 3.7 services within three years.

The study revealed that expectations of firm growth had little impact on the decision to go on the cloud. There was little difference in adoption rates between SMBs that expect to grow in the next three years (42%) and those solely focused on profitability (40%). This shows that both efficiency and scalability of cloud services were accorded equal importance in decision-making.

Also, local presence of cloud computing service providers was found to be an important factor in client firms’ choices (82%). The study estimates that 43% of workloads will become paid cloud services, while 28%  will remain on-premise while 29% will be free or bundled with other services.

I had earlier written on the benefits for small firms going on to the cloud from traditional IT setups. (See: How Small Firms Can Benefit Big From Cloud Computing (And Why They Are Not))

Cloud adoption will be gradual, and SMBs will continue to operate in a hybrid model with an increasing blend between off-premises and traditional on-premises infrastructure, for the foreseeable future,” said Marco Limena, vice president, Business Channels, Worldwide Communications Sector at Microsoft.

As cloud computing becomes more ubiquitous and SMBs’ existing IT becomes outdated, adoption will grow rapidly. Hosting service providers should consider the appropriate sales, delivery and support models to target larger SMB customers that are more likely to pay for cloud services,” he added.

By Sourya Biswas

sourya

Sourya Biswas is a former risk analyst who has worked with several financial organizations of international repute, besides being a freelance journalist with several articles published online. After 6 years of work, he has decided to pursue further studies at the University of Notre Dame, where he has completed his MBA. He holds a Bachelors in Engineering from the Indian Institute of Information Technology. He is also a member of high-IQ organizations Mensa and Triple Nine Society and has been a prolific writer to CloudTweaks over the years... http://www.cloudtweaks.com/author/sourya/

Sorry, comments are closed for this post.

Comics

At CloudTweaks, we're plugged into the cloud, the internet of things and all that the web has to offer. From wearable technology, to mobile computing, cloud computing and big data, CloudTweaks is your source for updates and news on the most innovative technology.

Popular

Top Viral Impact

The Future Of Work: What Cloud Technology Has Allowed Us To Do Better

The Future Of Work: What Cloud Technology Has Allowed Us To Do Better

The Future of Work: What Cloud Technology Has Allowed Us to Do Better The cloud has made our working lives easier, with everything from virtually unlimited email storage to access-from-anywhere enterprise resource planning (ERP) systems. It’s no wonder the 2013 cloud computing research IDG survey revealed at least 84 percent of the companies surveyed run at…

Cloud Infographic: Disaster Recovery

Cloud Infographic: Disaster Recovery

Cloud Infographic: Disaster Recovery  Business downtime can be detrimental without a proper disaster recovery plan in place. Only 6% of businesses that experience downtime without a plan will survive long term. Less than half of all businesses that experience a disaster are likely to reopen their doors. There are many causes of data loss and…

Cloud Infographic: Cloud Public, Private & Hybrid Differences

Cloud Infographic: Cloud Public, Private & Hybrid Differences

Many people have heard of cloud computing. There is however a tremendous number of people who still cannot differentiate between Public, Private & Hybrid cloud offerings.  Here is an excellent infographic provided by the group at iWeb which goes into greater detail on this subject. Infographic source: iWeb About Latest Posts souryaSourya Biswas is a…

Forrester Releases Its “15 Emerging Technologies To Watch Before 2020” Report

Forrester Releases Its “15 Emerging Technologies To Watch Before 2020” Report

15 Emerging Technologies To Watch Before 2020 The cloud, big data, the internet of things, and wearable technology have all featured heavily in Forrester’s latest list of fifteen technologies to watch before 2020. It is becoming a reality for businesses that they need to adapt and change to an increasingly technologically-minded customer base. Traditional marketing…

Featured Sponsors

Watching You Shop: Stores And Mannequins “Read” Their Customers And Respond

Watching You Shop: Stores And Mannequins “Read” Their Customers And Respond

Watching You Shop The mannequin in the store window stares blankly ahead as shoppers look at the clothes it is dressed in and contemplate a purchase. One shopper makes some comments. “It’s nice. I wonder if they have my size.” Another takes a few steps inside the store to see where these particular clothes might…

Salesforce Service Cloud: Air Traffic Control For Your Customer

Salesforce Service Cloud: Air Traffic Control For Your Customer

Salesforce Service Cloud One of the greatest benefits of the increasingly reliable and ubiquitous state of cloud technology is the removal of business silos and the consolidation of information flow, both in-house and on the road. This is of particular importance to the many different types of professionals whose work involves customer relationship management (CRM).…

Sponsors

Built For The Cloud vs. Adapting To The Cloud

Built For The Cloud vs. Adapting To The Cloud

Built For The Cloud vs. Adapting To The Cloud It may just sound like semantics, but there is a real difference between something that was “built for” versus “adapted to.” Would you rather buy a house that was “designed for” energy efficiency or one that was “adapted to” be energy efficient? “Built for” describes a…

Placement Opportunities - Find Out!

Established in 2009, CloudTweaks is recognized as one of the leading influencers in cloud computing, big data and internet of things (IoT) information. Our goal is to continue to build our growing information portal, by providing the best in-depth articles, interviews, event listings, whitepapers, infographics and much more.

You can help continue to support our community by social sharing, sponsoring, partnering or contributing to this great educational resource.

Contact

CloudTweaks Media
Phone: 1 (212) 763-0021

Join Our Newsletter