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Small Business Outsourcing to the Cloud Gains Momentum

By Ericka Chickowski on 2010-08-24



What kinds of companies are making the decision to move some of their IT operations to the cloud? Well, cloud services adoption among small and medium businesses is on the rise in 2010. That’s according to Austin-based Spiceworks which conducted a global survey of 1,500 IT professionals at SMBs with fewer than 1,000 employees. Key among the findings was a propensity of very small organizations to jump into the cloud more readily than larger SMBs. Spiceworks co-founder and vice president of marketing, Jay Halberg says: “Small companies with little existing infrastructure and outsourced IT are moving most quickly to the cloud, whereas larger SMBs are taking more measured steps due to considerable investments in onsite technology. With seven times as many users as the enterprise market, it's important for cloud service vendors to consider cloud service adoption patterns and to make it simple for SMBs to manage hybrid on-premise and cloud solutions.” Here’s a drill down into some of the numbers.

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During the first half of 2010, 14 percent of SMBs said they used cloud computing services.

Another 10 percent reported they developed near-term plans to deploy cloud-based services.

38 percent of SMBs with fewer than 20 employees use or plan to use cloud solutions in the next 6 months.

17 percent of organizations with between 20 and 99 employees plan on adopting cloud services in the second half of 2010.

22 percent of organizations with more than 100 employees use or plan to use cloud services over the same time period.

34 percent of SMBs in the tech sector use or are planning to use cloud services.

Companies in the services sector—including finance, HR and consulting—comprise next fastest growing vertical segment with 22 percent using or planning to deploy cloud solutions.

Most other industries trail closely behind with 20 percent adoption rates.

62 percent of SMBs have no plans to move to the cloud in the next 12 months, citing technology and security concerns.

Companies with 20 to 99 employees and typically one full-time IT pro on staff were least likely to move, along with companies in core industrial segments such as manufacturing, aerospace, engineering and in social services such as government, education, healthcare.

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