Five Reasons SMBs Fear The Cloud

Five Reasons SMBs Fear The Cloud

Five Reasons SMBs Fear the Cloud

Fear of the cloud has been around since the Cloud began. SMBs were traditionally afraid of security issues, while large companies fretted about increasing the complexity of their IT infrastructure.

What many budding start-up companies don’t realise is Cloud Computing helps place them on a level playing field with big businesses. This new technology allows SMBs to cut IT costs, scale up and down easier and collaborate more effectively. However, ComScore reported roughly 40 per cent of SMBs are still not using cloud service providers due to fears surrounding cloud computing.

Let’s discuss five reasons why SMBs fear the Cloud:

  1. I don’t know what Cloud Computing is

SMBs fear the cloud for the same reason you fear trying the new burger at McDonalds. You’ve no clue what it’s going to be like, and by the time you realise it’s terrible, it’s already too late. Most people aren’t big risk-takers when it comes to new technology, especially where their business is concerned.

A lack of education regarding what Cloud Computing is, and how it works is why many SMBs are afraid of this service. Basically, it’s a fear of the unknown. Most aren’t even aware they utilise the cloud in daily life, such as social media, online productivity tools like Google Apps and personal devices like mobile phones and tablets. What it comes down to, is that SMBs don’t know enough about the cloud to invest in it.

  1. It’s not cost effective

The primary reason cloud computing gives SMBs a foothold in the league of big businesses is because it converts capital expenses to lower operating costs and provides instant scalability. This is especially significant with SMBs because they are constantly striving to grow and expand, and can upgrade computer power and data storage quickly, without additional staff, labour and hardware costs.

However, not all cloud solutions are cheaper than on-premise solutions, so it’s important to choose the correct type of cloud, private, public or hybrid to avoid spending more than necessary. For example, a public cloud is an inexpensive setup, and allows businesses to pay for what they use. But if you need your resources quite consistently, shared resources through a private cloud could be a cheaper alternative.

  1. My data will not be secure

This SMB fear is perhaps the least unfounded of the five. The fear stems from the fact anything adrift on the Internet is at risk of a security breach from data-stealing malware. Also, accessing confidential information from personal devices puts your data in peril if they haven’t been configured with correct security settings. Outsourcing IT also means fault tolerance and redundancy is not under your business’s control. Although you should keep in mind information kept in data centres is probably more risk of being lost than data that’s been replicated and geographically distributed to other devices for safe-keeping.

Nonetheless, most SMBs can’t afford the enterprise level firewalls and security systems service providers can deliver. Not only this, if vendors are getting business, they’re probably pretty good at protecting data. You can expect their authentication, authorisation and access control to be pretty rock solid, since there would otherwise be painful consequences for their reputation.

  1. My system will run slower

Your system’s performance depends on several factors. Some SMBs fear migrating to the cloud will make data storage, application access and other processes more complex. While it’s true the cloud can increase a company’s architectural complexity, this depends on your company’s needs and requirements.

Previously, IT departments only had to manage a few software applications and data security. The adoption of cloud-developed applications necessitates higher computer power and more changes to your system, which would ultimately give your business a more complex IT infrastructure.

However, the speed of your system and applications is contingent on Internet connection, the types of applications and other factors. By using the cloud, you’re effectively putting the Internet between your business and its storage, and whether you can expect your performance to improve, suffers or stay the same should be discussed with your vendor.

  1. The Cloud Service Provider might fail

There have been a few instances in the past where major cloud service providers, such as Amazon have failed and put fear in SMB owners who can’t afford any downtime when they are trying to grow.

What’s worth noting is Amazon obviously doesn’t use geographical redundancy, but gives you the option of building it in. Also, you’re in an equally troublesome position if your data center fails. Using the cloud allows SMBs to have a failsafe set up somewhere else to ensure reliable service continues without interruption.

Why do SMBs fear cloud computing?

Ultimately, SMBs fear cloud computing because of a lack of education. They don’t know what it is, how it works or what it does. And if you don’t know what something does, how can you make an informed decision?

Whether cloud computing is advantageous for you depends on your business’s current state, and your thoroughness in forecasting its future. Obviously, cloud computing is not for everyone, but if you’re deciding whether your SMB should migrate to cloud computing you need to look at three things. What your present requirements are, where your business is headed and the terms in the service agreement from your chosen vendor.

gordon tanBy Gordon Tan

At 31 years old, Gordon Tan is the Managing Director of one of Australia’s fastest growing IT Support Companies R & G Technologies which employs over 30 staff. Having started the company 10 years ago he is passionate about educating others on how to grow successful and sustainable businesses.

About CloudTweaks

Established in 2009, CloudTweaks is recognized as one of the leading authorities in connected technology information and services.

We embrace and instill thought leadership insights, relevant and timely news related stories, unbiased benchmark reporting as well as offer green/cleantech learning and consultive services around the world.

Our vision is to create awareness and to help find innovative ways to connect our planet in a positive eco-friendly manner.

In the meantime, you may connect with CloudTweaks by following and sharing our resources.

View All Articles

One Response to Five Reasons SMBs Fear The Cloud

  1. In light of the overreach of the NSA and other “spy” organizations I would argue that there is no data that is stored anywhere via the Internet that is even remotely secure.

Comic
Martech In A Content Crazed World

Martech In A Content Crazed World

Content Crazed World Everywhere you look there are pop-up ads and offers, at times it can feel like overload. What used to be a few online ads on websites has now grown into a wild world of offers that consume your every device. These advancements in marketing technology can not only be overwhelming to the…

Hubgets – Advanced Collaboration, Enriched Communication

Hubgets – Advanced Collaboration, Enriched Communication

Advanced Collaboration Tool Sponsored series provided in collaboration with Hubgets Collaboration tools have advanced leaps and bounds with the advent of cloud technology, and the services available are only getting better. Promising features such as sophisticated group communication, productive management of tasks and meetings, and the ultimate dream, working remotely from some gorgeous island destination, innovative collaboration…

Verizon To Acquire Yahoo For $4.83 Billion

Verizon To Acquire Yahoo For $4.83 Billion

Verizon Communications Inc (VZ.N) said it had agreed to buy Yahoo Inc’s (YHOO.O) core internet business for $4.83 billion in cash, ending a lengthy sale process for the fading Web pioneer. Buying Yahoo’s operations will boost Verizon’s AOL internet business, which it bought last year for $4.4 billion, by giving it access to Yahoo’s advertising…

When Sci-Fi Predictions Come To Fruition

When Sci-Fi Predictions Come To Fruition

Evolution of Technologies To paraphrase science fiction author Arthur C. Clark, those who make predictions about the future are either “considered conservative now and mocked later, or mocked now and proved right when they are no longer around to enjoy the acclaim.” The one thing we can be sure about, Clark ventured, is that “[the…

Facebook Hopes To Extend Internet Connectivity With Solar-Powered Drones

Facebook Hopes To Extend Internet Connectivity With Solar-Powered Drones

Facebook Inc (FB.O) said on Thursday it had completed a successful test flight of a solar-powered drone that it hopes will help it extend internet connectivity to every corner of the planet. Aquila, Facebook’s lightweight, high-altitude aircraft, flew at a few thousand feet for 96 minutes in Yuma, Arizona, Chief Executive Mark Zuckerberg wrote in…

Achieving Network Security In The IoT

Achieving Network Security In The IoT

Security In The IoT The network security market is experiencing a pressing and transformative change, especially around access control and orchestration. Although it has been mature for decades, the network security market had to transform rapidly with the advent of the BYOD trend and emergence of the cloud, which swept enterprises a few years ago.…

Ending The Great Enterprise Disconnect

Ending The Great Enterprise Disconnect

Five Requirements for Supporting a Connected Workforce It used to be that enterprises dictated how workers spent their day: stuck in a cubicle, tied to an enterprise-mandated computer, an enterprise-mandated desk phone with mysterious buttons, and perhaps an enterprise-mandated mobile phone if they traveled. All that is history. Today, a modern workforce is dictating how…

Maintaining Network Performance And Security In Hybrid Cloud Environments

Maintaining Network Performance And Security In Hybrid Cloud Environments

Hybrid Cloud Environments After several years of steady cloud adoption in the enterprise, an interesting trend has emerged: More companies are retaining their existing, on-premise IT infrastructures while also embracing the latest cloud technologies. In fact, IDC predicts markets for such hybrid cloud environments will grow from the over $25 billion global market we saw…

Shaking Up The Cloud Technology Marketplace

Shaking Up The Cloud Technology Marketplace

Cloud Technology Marketplace Cloud continues its devastating rearrangement of the technology marketplace. As legacy vendors struggle to compete many deck chairs are getting moved about – some pretty spectacularly. In the meantime, the boat is still sinking. We have seen how SaaS (Software as a Service) is tearing up traditional software firms who must adapt…

Five Cloud Questions Every CIO Needs To Know How To Answer

Five Cloud Questions Every CIO Needs To Know How To Answer

The Hot Seat Five cloud questions every CIO needs to know how to answer The cloud is a powerful thing, but here in the CloudTweaks community, we already know that. The challenge we have is validating the value it brings to today’s enterprise. Below, let’s review five questions we need to be ready to address…

Surprising Facts and Stats About The Big Data Industry

Surprising Facts and Stats About The Big Data Industry

Facts and Stats About The Big Data Industry If you start talking about big data to someone who is not in the industry, they immediately conjure up images of giant warehouses full of servers, staff poring over page after page of numbers and statistics, and some big brother-esque official sat in a huge government building…

Cloud Computing – The Real Story Is About Business Strategy, Not Technology

Cloud Computing – The Real Story Is About Business Strategy, Not Technology

Enabling Business Strategies The cloud is not really the final destination: It’s mid-2015, and it’s clear that the cloud paradigm is here to stay. Its services are growing exponentially and, at this time, it’s a fluid model with no steady state on the horizon. As such, adopting cloud computing has been surprisingly slow and seen more…

Why Hybrid Cloud Delivers Better Business Agility

Why Hybrid Cloud Delivers Better Business Agility

Why Hybrid Cloud Delivers Better Business Agility A CIO friend of mine once told me that a hybrid cloud model enables him to “own the base, rent the spike” when it comes to unplanned events. Let’s face it – maintaining unused infrastructure for rare or random IT events is expensive and unnecessary in a cloud…

Infographic: IoT Programming Essential Job Skills

Infographic: IoT Programming Essential Job Skills

Learning To Code As many readers may or may not know we cover a fair number of topics surrounding new technologies such as Big data, Cloud computing , IoT and one of the most critical areas at the moment – Information Security. The trends continue to dictate that there is a huge shortage of unfilled…

Business Analytics Vs Data Science

Business Analytics Vs Data Science

Big Data Continues To Grow Big Data continues to be a much discussed topic of interest and for good reason.  According to a recent report from International Data Corporation (IDC), “worldwide revenues for big data and business analytics will grow from nearly $122 billion in 2015 to more than $187 billion in 2019, an increase…