Cloud computing: Mid-sized firms are investing

Medium-sized companies turn to the cloud as confidence returns, says IBM...

More medium-sized companies are investing in the cloud, according to a report commissioned by IBM.

Cloud computing was a priority for 70 per cent of businesses surveyed, which said they were either planning or currently deploying cloud-based technologies to improve their IT systems.

The report found that medium-sized businesses are increasingly shifting emphasis from cost control to growth, with 62 per cent of businesses surveyed reporting that they expect their IT budgets to increase over the next 12 to 18 months, compared with just 11 per cent of the respondents in the 2009 survey.

More than two-thirds of mid-sized businesses are taking to the cloud as confidence increases, according to IBMPhoto: Shutterstock

Andy Rigby, managing director of EMEA, Virtustream and an IBM Business Partner, said in a statement that more companies are seeking advice on shifting their IT systems to cloud computing.

"We've seen a steady increase in interest from mid-sized companies that are looking for trusted technology partners that can address and eliminate many of the obstacles of widespread cloud computing adoption, such as security and availability concerns."

The survey reported that mid-sized companies cited cost reduction, improved system redundancy, better manageability of IT and remote access as the main expected benefits of cloud computing.

"Cloud computing delivers many tangible benefits, including eliminating initial capital expenses for IT systems as well as increasing CPU efficiency and reducing energy consumption - benefits particularly important to mid-market customers given tight economic conditions," Rigby said.

Lubomir Cheytanov, mid-market business leader at IBM for the UK and Ireland, said the change indicated increased confidence post-recession.

"When we surveyed medium-sized firms 18 months ago, most were focused on reducing costs and improving efficiencies. Today, the conversation is also about expanding their business, connecting with customers and gaining greater insights."

The findings of the IBM study are consistent with a report produced by research company IDC, which predicted that spending on cloud technologies would increase five times faster than global IT spending.