2015 Advertising Opportunities - Find Out More!

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As cloud computing becomes more ubiquitous and SMBs’ existing IT becomes outdated, adoption will grow rapidly.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

Cloud Infographic – The Internet Of Things In 2020

Cloud Infographic – The Internet Of Things In 2020

The Internet Of Things In 2020 The growing interest in the Internet of Things is amongst us and there is much discussion. Attached is an archived but still relevant infographic by Intel which has produced a memorizing snapshot at how the number of connected devices have exploded since the birth of the Internet and PC.…

5 Ways The Internet of Things Will Drive Cloud Growth

5 Ways The Internet of Things Will Drive Cloud Growth

5 Ways The Internet of Things Will Drive Cloud Growth The Internet of Things is the latest term to describe the interconnectivity of all our devices and home appliances. The goal of the internet of things is to create universal applications that are connected to all of the lights, TVs, door locks, air conditioning, and…

Cloud Infographic – Cloud Fast Facts

Cloud Infographic – Cloud Fast Facts

Cloud Infographic – Cloud Fast Facts It’s no secret that Cloud Computing is more than just a buzz term as that ship has sailed off a long time ago. More and more companies are adopting the uses and benefits of cloud computing while aggressively factoring cloud services spending into their budget. Included is an excellent…

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…

Five Signs The Internet of Things Is About To Explode

Five Signs The Internet of Things Is About To Explode

The Internet of Things Is About To Explode By 2020, Gartner estimates that the Internet of Things (IoT) will generate incremental revenue exceeding $300 billion worldwide. It’s an astoundingly large figure given that the sector barely existed three years ago. We are now rapidly evolving toward a world in which just about everything will become…

Featured Sponsors

Cloud Logo Sponsors

hp Logo CityCloud-PoweredByOpenstack-Blue square_logo_100x100-01
cisco_logo_100x100 vmware citrix100

2015 Advertising Opportunities - Find Out More!

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.

Contact

CloudTweaks Media
Phone: 1 (212) 763-0021

Join Our Newsletter