Why Are Very Small Businesses Leaders In Cloud Adoption?

Very small businesses are adopting cloud service technologies like Carbonite in greater numbers than their larger counterparts. This is due to the many free or low-cost options available and lower barriers to entry for leveraging the cloud. An article on Canadian IT blog ITBusiness.ca highlights a new report that suggests smaller SMBs are more likely to use cloud services, as well as a greater number of services.

The report, “The State of SMB IT,” explores global technology trends in companies with fewer than 1,000 employees. The semi-annual survey by networking software firm Spiceworks polled 1,000 IT professionals. Here are a few key findings from the report:

1. Investing in technology, not new hires: Businesses with fewer than 250 employees have increased technology budgets this year, but only 22 percent plan to add staff. It’s particularly interesting that small businesses are choosing to spend more on technology, such as new hardware and cloud-based services, instead of hiring more people.
2. Embracing the cloud: About 60 percent of the SMBs surveyed are using cloud services, with smaller companies more actively participating. According to the article, “smaller SMBs were more likely to be using cloud services, as well as using a greater number of them.”
3. Virtualization: More than 70 percent of SMBs are using server virtualization, which is a file server hosted in the cloud rather than a specific piece of hardware. Within six months that figure is expected to rise to 80 percent. Larger SMBs are better candidates for server virtualization, since this technology is difficult to leverage effectively unless your business has more than 100 employees.

As the Spiceworks survey illustrates, very small businesses have different technology needs and capabilities than mid-sized companies. Cloud services are aimed at different market segments, which would explain some of the differences in cloud adoption within SMBs.

We’d love to hear your perspective on these IT trends. Do these findings match your experience at small- and mid-sized businesses? Let us know by posting in the comments section!

Source: ITBusiness.ca, May 2013