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Cloud Computing For Small Businesses And Why Penetration Remains Low Past 2012

Cloud Computing For Small Businesses And Why Penetration Remains Low Past 2012

In the last decade, cloud computing has become a hot topic, both in the media and at individual level. It’s estimated that close to 80 percent of all modern businesses use a form of cloud computing. The most surprising thing here is that most of them don’t even know they are using it. This has denied most of these businesses a chance to move forward, compete with peers, and grow. In the face of the benefits cloud computing offers to your business, the choices are wide open. However, recently, there have been reports that new small businesses are not taking advantages of the opportunities cloud computing offers. This article focuses on the challenges most small businesses face in uptake of commercial cloud computing products, services, and business models.

It does not make sense to delve into reasons why small business uptake cloud-computing at significantly lower rates without looking at the current situation. The most common cloud computing services implemented by small businesses are hosted e-mail services like Gmail and their supported applications. There is a bit application for VoIP services like Skype, especially for tech-savvy small businesses. Storage is also a common choice, especially for open-source applications like Google Docs. This is where most small businesses start and stop on the cloud computing front.

Here are some of the reasons for this.

  • There is an evident knowledge gap between small business owners and the solution providers. This is because very few businesses understand they even use the cloud computing and enjoy its benefits. To solve this gap, it’s essential for knowledge creators and cloud-computing providers to work together to inform people about these products and services. Once small businesses understand cloud computing, more will uptake the services and small business solutions.
  • Most small businesses feel like they don’t need cloud computing – it’s a preserve for the big corporates. Whereas this assumption has become widespread, partly because of the way most cloud computing companies package their products, cloud computing is a good thing for small businesses. More cloud computing for small businesses awareness, cloud computing service packaging and marketing need to be revisited.
  • The nature of operation for small businesses sometimes renders them ignorant to new technologies –cloud computing included. Small businesses have comparatively less employees, information files, or chains of command. Most of these can be managed easily without a significant technological output. In front of this, cloud computing penetration rate for small businesses remains significantly slow – not without good reason. There is, however, an urgent need that should equip small businesses project their growth into the future, including all the economies of scale associated with a cloud computing move.
  • The last reason why there is a slow penetration for cloud computing among small businesses is high costs. Many small businesses, especially start-ups, shun from any extra expense. Cloud computing costs are some of those they avoid.

Over the long haul, for businesses keen on future growth, capacity expansion, and security of their records and files, cloud computing is an inevitable choice.

By Walter Bailey

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