Businesses now operate in many different ways, often remotely and increasingly flexibly. This has made fast, reliable access to data, information and communication tools through the cloud pivotal to growing a customer base and competing internationally.
In spite of the positive impact the cloud can have on business reach, operations, and efficiency, some smaller firms are proving less enthusiastic about buying into cloud IT services.
Research from the Federation of Small Businesses (FSB) suggests that only a quarter of UK SMEs are investing in technology such as cloud computing, with concerns over things like cost, complexity, compatibility, and data security keeping many small businesses and their IT operations firmly on the ground.
There is certainly an issue of trust – or a lack of it – from small business owners when it comes to cloud computing, says Nigel Temple, founder of business marketing consultancy The Marketing Compass: "They are used to having all their data and software stored on their computers, which gives them a sense of security. However, computers do wear out, hard drives fail and laptop computers can get dropped.
"With cloud storage, everything is automatically backed up, there are no software updates to worry about, and it is so flexible. You can access the software, and your stored data, from any device, including your smartphone"
The challenge, says Temple, lies in educating business owners that they can change old habits and move away from the perceived security of the physical office server to the cloud environment.
There are various cloud scenarios that can be adopted by small businesses. The most popular include hosted desktops and Microsoft Office 365 – both quite different but highly effective, depending on the requirements of the small business.
SMEs that have made the transition invariably find that cloud technology gives them optimum freedom and flexibility in terms of the way that they communicate with business partners, suppliers and customers.
The cloud also enables them to collaborate with colleagues from a
distance, using applications such as Evernote which allows the
sharing, viewing and updating of key documents from multiple
locations.
Cost is another concern for SMEs that are accustomed to the capital expenditure required for conventional company IT systems, including in-house servers, software, data storage and IT personnel.
Russel Ridgley, head of cloud services at IT consultancy Pulsant, says that any business, regardless of its size, will always have resourcing and budgeting issues regarding IT requirements, but believes cloud computing makes sense for SMEs.
"There is no capital outlay required for equipment or infrastructure on-site, and therefore no specialist knowledge is required to maintain it," he says. "Instead, all of that is done by the service provider, who also takes care of back-up, disaster recovery and other associated services."
Many cloud providers can scale the solution to suit the size and type of business, ensuring that it is cost-effective and appropriate for the nature of the data and systems they are using on the cloud.
Setting up the cloud for smaller firms is also very straightforward. A typical implementation, which could be done over a weekend, involves setting up the hosted desktops or Office 365 accounts, migrating any data, installing and configuring any applications (either on a hosted desktop platform or on the company's devices of choice) and testing them.
Concerns over the security of company data stored in the cloud have been one of the biggest barriers to take up by SMEs, but Andy Hinxman, director of Keybridge IT Solutions, believes these concerns are no longer valid.
"Most cloud systems are very flexible in terms of how to lock down users' access and users' permissions, thus ensuring security from within is at its highest," he says. "Data centres are secure, and only authorised personnel have access to them, while data is encrypted to the highest level."
For SMEs to get the most out of cloud, the chosen provider must have the expertise and credentials, in terms of quality and security, and be willing to work with the company to develop the best, most appropriate cloud product.
But could a business be too small to move cost-effectively to the cloud?
Hinxman thinks not. "Whether you are one-user company, or a global business with thousands of employees, it is possible to move some or all of your IT functions and systems to the cloud.
"It has become much more cost effective, and there are countless other benefits above and beyond the cost that make it a sound business decision for the smallest firms."
The only real issue facing small businesses transferring their IT systems and operations to the cloud is what to do with the extra space that was once taken up by bulky IT equipment.
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