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Cloud saves UK SMEs thousands, yet many are still hesitant | 1 March 2013

A survey has revealed that small businesses who are adopting the cloud ‘are beating the recession’, yet many others remain reticent, cloudpro.co.uk reports

Research carried out by the Manchester Business School and Federation of Small Businesses (FSB) found that use of cloud apps has enabled some 40 per cent of British businesses to grow, while 58 per cent said they had seen their IT costs fall.

The survey compared British with US businesses and discovered that while cloud proponents were experiencing benefits, the UK was ‘lagging behind’ their transatlantic counterparts due to their hesitation in embracing it. In fact, only about 10 per cent of Britain’s SMEs are said to be using the cloud.

According to FSB public affairs manager, Jonathan Finney, one of the explanations for this reticence is confusion pertaining to the UK’s data sovereignty regulations which are necessary for international trade. Many US businesses trade internally, thus don’t have to worry about such rules.

They also need more guidance, more examples and better access said Finney via computerweekly.com: “UK businesses are definitely investing in technology and many are especially investing in the cloud, but they need more use cases to become more confident about [it]”.

Making better use of cloud computing can make huge cost savings in terms of in-house servers, equipment and maintenance. Some of the largest survey respondents said that they were saving up to £4 million annually, while a fifth of SMEs claimed to save up to 50 per cent of IT costs.

Furthermore, 56 per cent of cloud-embracing SMEs had reinvested their savings into the business, with many creating new jobs as a result.

The views expressed in this post are those of the author and are not necessarily those of Qube Global Software. All facts are verified where possible directly by the author.




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