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As cloud computing becomes more ubiquitous and SMBs’ existing IT becomes outdated, adoption will grow rapidly.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

Sorry, comments are closed for this post.

Join Our Newsletter

Receive updates each week on news, tips, events, comics and much more...

Advertising Programs

Click To Find Out!

Sponsored Posts

Sponsored Posts

CloudTweaks has enjoyed a great relationship with many businesses, influencers and readers over the years, and it is one that we are interested in continuing. When we meet up with prospective clients, our intent is to establish a more solid relationship in which our clients invest in a campaign that consists of a number of

Popular

Top Viral Impact

Cloud Infographic: Cloud Computing Growth

Cloud Infographic: Cloud Computing Growth

An excellent infographic provided by AwesomeCloud which predicts a continued high level of growth in the cloud computing industry. Potentially staggering numbers for Public Cloud IT Services of $100 Billion by 2016. Infographic Source: AwesomeCloud About Latest Posts souryaSourya Biswas is a former risk analyst who has worked with several financial organizations of international repute, besides being a

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 – The Future Of Big Data

Cloud Infographic – The Future Of Big Data

Cloud Infographic – The Future Of Big Data Big Data is BIG business and will continue to be one of the more predominant areas of focus in the coming years from small startups to large scale corporations. We’ve already covered on CloudTweaks how Big Data can be utilized in a number of interesting ways from preventing world hunger to

Can I Contribute To CloudTweaks?

Yes, much of our focus in 2015 will be on working with other influencers in a collaborative manner. If you're a technology influencer looking to collaborate long term with CloudTweaks – a globally recognized leader in cloud computing information – drop us an email with “tech influencer” in the subject line.

Please review the guidelines before applying.

Whitepapers

Top Research Assets

HP OpenStack® Technology Breaking the Enterprise Barrier

HP OpenStack® Technology Breaking the Enterprise Barrier

Explore how cloud computing is a solution to the problems facing data centers today and highlights the cutting-edge technology (including OpenStack cloud computing) that HP is bringing to the current stage. If you are a CTO, data center administrator, systems architect, or an IT professional looking for an enterprise-grade, hybrid delivery cloud computing solution that’s open,

Public Cloud Flexibility, Private Cloud Security

Public Cloud Flexibility, Private Cloud Security

Public Cloud Flexibility, Private Cloud Security Cloud applications are a priority for every business – the technology is flexible, easy-to-use, and offers compelling economic benefits to the enterprise. The challenge is that cloud applications increase the potential for corporate data to leak, raising compliance and security concerns for IT. A primary security concern facing organizations moving