Microsoft data suggests SMB cloud adoption poised to double

Microsoft data suggests SMB cloud adoption poised to double

Summary: Adoption of paid cloud applications and infrastructure services is especially rapid among companies with two to 10 employees, according to an SMB survey sponsored by the software giant.

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TOPICS: SMBs, Microsoft
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Usage of paid cloud services could double among small and midsize businesses within the next five years, according to new research released this week by software giant Microsoft.

Its latest examination of adoption trends, which covers 3,000 SMB decision-makers, predicts especially aggressive adoption among the smallest companies. The number of companies with two to 10 employees using at least one cloud service will triple within the next three years, the research found.

The infographic recaps some of the key findings:

It definitely is in Microsoft's interest to ally itself as closely as possible with the SMB cloud movement, especially since historically many of its customers have come from the small-business world. Its survey suggest that approximately 58 percent of SMBs believe the cloud will help their organization become more competitive, which is one reason that many of them are rushing to invest in applications and IT services that are delivered this way.

"The cloud levels the playing field for SMBs, helping them compete in today's quickly changing business environment, by spending less time and money on IT and more time focused on their most important priority -- growing their business," said Marco Limena, vice president of operator channels for Microsoft, in a statement about the research.

Here are some other statistics worth noting:

  • Mobile versions of cloud applications are becoming far more important; and this doesn't just mean email or calendar functions.
  • Only 20 percent of the surveyed SMBs were worried that data was less secure in the cloud than in their on-premise systems. Actually, slightly more than one-third of them think the data is more secure in the cloud than in their own systems.
  • Approximately 56 percent of the companies surveyed wanted a single IT advisor to help them figure out which applications to use within their organization; they want someone to worry about the details and integration on their behalf.

Topics: SMBs, Microsoft

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8 comments
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  • Doubling over 5 years seems slow. Should easily happen.

    I've always said cloud is a poor, unlikely option for big organisations who have their own IT dept. But for small businesses, it seems ideal. Can't afford to employ IT staff so other staff have to double up as IT people. Who wants the hassle of server replacement, parts failures, operating system upgrades when the real issue is running the business?
    If there could be a cloud personnel, company tax, and accounting program, that could be a huge seller.
    peter_erskine@...
    • Completely agree...

      I completely agree this is a nobrainer. And Microsoft would be REALLY smart making this technology agnostic. Yes yes I know Microsoft wants to sell more Windows boxes, but to truly make themselves the dominate supplier they should say, "you got OSX, good for you here you go..." "You got Linux, good for you here you go..."

      Look at IBM they moved away from just A platform and into services. But knowing Microsoft they will probably have their head up where the sun don't shine...
      serpentmage
      • Companies exist to profit for themselves.

        No "community" thinking allowed.

        Microsoft wants people in its neck of the woods.

        Companies might say "we prefer open standards", but given how quickly HTML5 has become fragmented, with no improvement in sight... it's just the latest example of "the usual"... there is no innovation or change.
        HypnoToad72
  • "Only 20% feel that data is less secure in the cloud"?

    Is this trying it indicate that 80% of the SMBs are lead by Idiots? Or is the great Wizard trying to convince us that there is no man behind that curtain? That Microsoft is some sort of all powerful Wizard, that can protect everyone's data?
    Jumpin Jack Flash
    • Response to your comment...

      @Jumpin Jack Flash: In the interest of complete disclosure ??? I work for Symantec and am not going to use this forum for a sales pitch ??? but, I do want to mention that we???ve had similar findings in our own cloud research. Our last State of Cloud survey found that 87% of organizations are confident that moving to the cloud will not impact or will actually improve their security. They are conflicted about security, however, and also rate it as a top concern. For the smaller SMBs, what it may come down to is that cloud providers can afford to invest in security that many small businesses could not do themselves. So, it???s really a matter of whether the cloud provider does their job right. For these reasons, it???s likely a fair assessment that SMBs would believe that cloud is more secure.
      bigdoggiants
  • Yes..........All............Guys...........Welcome

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    SummersCathy
  • Duh

    Office 365 is the logical step for the many SMB's. It replaces aging SBS 2003 installs.
    JeveSobs
  • In 'the new normal', companies won't have the resources

    And as they migrate to hosted services, once they stop paying, how do they get their data out of their walled ecosystem before the provider shuts it off?
    HypnoToad72