Friday, February 5, 2010

SMBs Moving Towards Cloud Computing, says Microsoft study

A recent Microsoft study states that SMBs are beginning to understand the value of renting IT as a service

Microsoft recently released its global SMB IT and Hosted IT Index 2010, which investigates how small and midsize businesses (SMBs) across multiple segments fared during the recession and how they use technology. As part of the study, over three thousand SMBs were surveyed in France, Germany, Netherlands, Norway, Poland, South Africa, Spain, UK, USA, Australia, China, India, Japan, South Korea and Singapore in a cross-section of different industries.

The research finds that businesses that value IT as an enabler for better business productivity and effectiveness and those that use hosted services performed better fiscally than those that do not.  The 2010 index indicates SMBs are beginning to see the benefits of cloud computing; more than 40 per cent of the respondents that use hosted or cloud technology reported revenue rises of 30 per cent or more compared with 90 per cent of respondents not using hosted technology that saw decreases in revenue.

The advantages of hosted or cloud technology are viewed as reduced cost and IT management and maintenance, as well as increased business value, productivity and competitiveness. Further, awareness of hosted services is increasing with 65 per cent of SMBs using hosted software to some extent, while 73 per cent of the remainder have considered it, compared with only 44 per cent in the 2008 Index. SMBs are also beginning to understand the value of "renting" IT as a service — 36 per cent said a pay-as-you-go model would be attractive.

 "Over the last five years, we have seen nearly 40 per cent growth in usage of hosted services," said Michael Korbacher, director of EMEA Software plus Services in the Communications Sector at Microsoft. "Using pay-as-you-go cloud technologies, small and midsize businesses can now afford and easily have access to enterprise-class, secure services across any platform."

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