Cloud computing has become a watchword for the IT industry as software and services such as e-mail, websites and e-commerce are increasingly available in an on-premises, off-premises or hybrid model depending on business need. Over the last five years, there has been nearly a 40 per cent growth in usage of hosted services. Using pay-as-you-go cloud technologies has enabled SMBs to afford and have easy access to enterprise-class, secure services across any platform. According to Microsoft's SMB IT and Hosted IT Index 2010, it has been found that businesses that use hosted services performed better fiscally than those that do not.
The SMB IT and Hosted IT Index 2010 researched 3,193 SMBs in a cross section of private industries in 15 countries. The SMBs surveyed were the ones who reported an increase in revenue in 2010 from 2008. Those that reported growth in their respective segments view IT as critical to their business success. In the past 12 months, 52 per cent of SMBs reported an increase in revenue, up from 39 per cent in 2008, while 55 per cent of SMBs view IT as critical to their business. Of the SMBs that view IT as critical, 60 per cent saw revenues grow over the past 12 months. In contrast, among SMBs that stated IT is not important, less than 29 per cent saw revenue increase.
The research also shows that 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.
Overall, the findings show greater awareness of the benefits of IT among SMBs and a high reliance on IT across all industries and geographies. The findings indicate a clear path towards better financial performance than for those not currently taking advantage of IT advances such as hosted services.
