SMBs Struggle To Invest In Customized Cloud Services: Study

by CXOtoday News Desk    Jun 06, 2017

Cloud

Cloud services are those that are offered to users via the Internet from the server of cloud computing service provider. Such services provide scalable and easy access to various resources and applications, and are entirely managed by the cloud service providers. The examples of cloud services include web-based e-mail services, online backup solutions and data storage, document collaboration services, technical support services, and database processing among others.

Cloud service providers supply the necessary software and hardware required for cloud service, thereby eliminating the need for organizations to deploy their own resources for managing networked services. The other advantage of cloud services over the traditional methods of providing infrastructure is faster deployment of services and reduction in in-house maintenance costs. 

On the basis of mode of delivery, the cloud services market is segmented into Platform as a Service (PaaS), Software as a Service (SaaS) and Infrastructure as a service (IaaS). The SaaS mode of delivery is further segmented into SMB and mobile corporate SaaS cloud services, corporate SaaS cloud services, SMB SaaS cloud services and others. North America is the largest contributor to the cloud services market due to the high penetration of internet in this region. This region is followed by Europe, Asia-Pacific and Rest of the World (RoW), as per a study by Persistence Market Research.

Major benefits offered by cloud services are driving business organizations in implementing the use of cloud services. Cloud services maximize the effectiveness of shared resources and ensure the business organizations higher returns and faster paybacks. In addition, cloud services offer scalable solutions to growing business organizations at low cost of ownership. This drives business organizations to invest in such services that allow them to generate higher revenues by optimizing the available resources, noted the study.

However, the data security issues are the roadblocks that are adversely affecting the growth of this market. The increasing data hacking incidences using sophisticated tools result in loss of sensitive data, causing serious dents in the business revenues. Also, there are constant evolutions of new security threats that are affecting the quality of cloud services.

The study highlights that the small and medium businesses find it difficult to repeatedly invest in the customized solutions available for cloud services security. Due to such factors, the business organizations are reluctant in investing in the cloud services and prefer to carry on with conventional methods of network infrastructure, the study said.