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

Sorry, comments are closed for this post.

Comic
Adopting A Cohesive GRC Mindset For Cloud Security

Adopting A Cohesive GRC Mindset For Cloud Security

Cloud Security Mindset Businesses are becoming wise to the compelling benefits of cloud computing. When adopting cloud, they need a high level of confidence in how it will be risk-managed and controlled, to preserve the security of their information and integrity of their operations. Cloud implementation is sometimes built up over time in a business,…

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…

The Fully Aware, Hybrid-Cloud Approach

The Fully Aware, Hybrid-Cloud Approach

Hybrid-Cloud Approach For over 20 years, organizations have been attempting to secure their networks and protect their data. However, have any of their efforts really improved security? Today we hear journalists and industry experts talk about the erosion of the perimeter. Some say it’s squishy, others say it’s spongy, and yet another claims it crunchy.…

Get Ready For Virtual Reality and the Cloud

Get Ready For Virtual Reality and the Cloud

Virtual Reality Cloud We’re lucky to live in an era where virtual reality is no longer relegated to the confines of a sci-fi movie universe. Thanks to technology introduced by products like Oculus Rift, consumers now have access to virtual environments with fully immersive graphic capabilities. As a result, companies have only just begun to…

LAVABIT, EDWARD SNOWDEN, AND THE LEGAL BATTLE FOR PRIVACY

LAVABIT, EDWARD SNOWDEN, AND THE LEGAL BATTLE FOR PRIVACY

The Legal Battle For Privacy In early June 2013, Edward Snowden made headlines around the world when he leaked information about the National Security Agency (NSA) collecting the phone records of tens of millions of Americans. It was a dramatic story. Snowden flew to Hong Kong and then Russia to avoid deportation to the US,…

Are Cloud Solutions Secure Enough Out-of-the-box?

Are Cloud Solutions Secure Enough Out-of-the-box?

Out-of-the-box Cloud Solutions Although people may argue that data is not safe in the Cloud because using cloud infrastructure requires trusting another party to look after mission critical data, cloud services actually are more secure than legacy systems. In fact, a recent study on the state of cloud security in the enterprise market revealed that…

Despite Record Breaches, Secure Third Party Access Still Not An IT Priority

Despite Record Breaches, Secure Third Party Access Still Not An IT Priority

Secure Third Party Access Still Not An IT Priority Research has revealed that third parties cause 63 percent of all data breaches. From HVAC contractors, to IT consultants, to supply chain analysts and beyond, the threats posed by third parties are real and growing. Deloitte, in its Global Survey 2016 of third party risk, reported…

Three Factors For Choosing Your Long-term Cloud Strategy

Three Factors For Choosing Your Long-term Cloud Strategy

Choosing Your Long-term Cloud Strategy A few weeks ago I visited the global headquarters of a large multi-national company to discuss cloud strategy with the CIO. I arrived 30 minutes early and took a tour of the area where the marketing team showcased their award winning brands. I was impressed by the digital marketing strategy…

Cloud Infographic – Big Data Predictions By 2023

Cloud Infographic – Big Data Predictions By 2023

Big Data Predictions By 2023 Everything we do online from social networking to e-commerce purchases, chatting, and even simple browsing yields tons of data that certain organizations collect and poll together with other partner organizations. The results are massive volumes of data, hence the name “Big Data”. This includes personal and behavioral profiles that are stored, managed, and…

Why Cloud Compliance Doesn’t Need To Be So Overly Complicated

Why Cloud Compliance Doesn’t Need To Be So Overly Complicated

Cloud Compliance  Regulatory compliance is an issue that has not only weighed heavily on the minds of executives, security and audit teams, but also today, even end users. Public cloud adds more complexity when varying degrees of infrastructure (depending on the cloud model) and data fall out of the hands of the company and into…

5 Reasons Why Your Startup Will Grow Faster In The Cloud

5 Reasons Why Your Startup Will Grow Faster In The Cloud

Cloud Startup Fast-tracking Start-ups face many challenges, the biggest of which is usually managing growth. A start-up that does not grow is at constant risk of failure, whereas a new business that grows faster than expected may be hindered by operational constraints, such as a lack of staff, workspace and networks. It is an unfortunate…

Digital Marketing Driven by Cloud, Big Data and IoT

Digital Marketing Driven by Cloud, Big Data and IoT

Digital Marketing Successful digital marketing campaigns are being driven largely by trending technologies, specifically the Internet of Things (IoT), Big Data, and The Cloud. These may be used for a huge number of marketing applications, from optimizing the performance of sports teams to improving science and research, even helping to aid law enforcement. Amazon Web…

The Cloud Above Our Home

The Cloud Above Our Home

Our Home – Moving All Things Into The Cloud The promise of a smart home had excited the imagination of the movie makers long ago. If you have seen any TV shows in the nineties or before, the interpretation presented itself to us as a computerized personal assistant or a robot housekeeper. It was smart,…

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…

Using Private Cloud Architecture For Multi-Tier Applications

Using Private Cloud Architecture For Multi-Tier Applications

Cloud Architecture These days, Multi-Tier Applications are the norm. From SharePoint’s front-end/back-end configuration, to LAMP-based websites using multiple servers to handle different functions, a multitude of apps require public and private-facing components to work in tandem. Placing these apps in entirely public-facing platforms and networks simplifies the process, but at the cost of security vulnerabilities. Locating everything…

Big Data’s Significant Role In Fintech

Big Data’s Significant Role In Fintech

Data Banking Fintech covers a range of financial fields such as retail banking, investments, and lending and thanks to the mobile and internet innovations of late is a thriving sector. Offering improvements which drive customer satisfaction and education in an area previously inscrutable and dictated by gigantic inflexible corporations, fintech is helping put the power…

Battle of the Clouds: Multi-Instance vs. Multi-Tenant

Battle of the Clouds: Multi-Instance vs. Multi-Tenant

Multi-Instance vs. Multi-Tenant The cloud is part of everything we do. It’s always there backing up our data, pictures, and videos. To many, the cloud is considered to be a newer technology. However, cloud services actually got their start in the late 90s when large companies used it as a way to centralize computing, storage,…

Infographic: 9 Things To Know About Business Intelligence (BI) Software

Infographic: 9 Things To Know About Business Intelligence (BI) Software

Business Intelligence (BI) Software  How does your company track its data? It’s a valuable resource—so much so that it’s known as Business Intelligence, or BI. But using it, integrating it into your daily processes, that can be significantly difficult. That’s why there’s software to help. But when it comes to software, there are lots of…

Cukes and the Cloud

Cukes and the Cloud

The Cloud, through bringing vast processing power to bear inexpensively, is enabling artificial intelligence. But, don’t think Skynet and the Terminator. Think cucumbers! Artificial Intelligence (A.I.) conjures up the images of vast cool intellects bent on our destruction or at best ignoring us the way we ignore ants. Reality is a lot different and much…