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Cloud can help SMBs survive recession

Although the macroeconomic crisis is impacting organizations around the world, small businesses in the U.K. have it particularly rough as they need to find ways to remain competitive. In the past, IT was classified as an expense that would sometimes cost too much, causing more harm than good. However, this doesn't necessarily have to be the case.

A new report by computing firm Qubic said small and medium-sized businesses should consider investing in cloud computing to remain competitive without wasting resources. Since the cloud enables decision-makers to take advantage of centrally pooled hardware and software, small organizations can reduce maintenance expenses that were traditionally associated with computing.

"There is always pressure on startups and small businesses to establish themselves and the only way this can be done is if they have sufficient access to leading technology that enables them to break ground without breaking the bank," said Chris Papa, managing director of Qubic.

By leveraging cloud computing, SMBs can avoid investing large sums of cash and instead gain access to innovative solutions at a low cost, enabling them to enhance efficiency for less.

"By cutting costs at this level, small businesses and startups could help Britain out of recession by driving job creation," Papa said. "Focusing on becoming more efficient can give businesses the extra resources to invest elsewhere in their business so that they can grow."

Where does the cloud stand in the UK?
A separate study by the Cloud Industry Forum said more organizations are implementing the cloud than ever before, as more than three-quarters of businesses are forecast to use the technology by 2013. The report also noted the overall cloud services market experienced 27 percent growth in new users during the past 18 months, suggesting companies are beginning to see the potential benefits of the cloud.

Approximately 61 percent of U.K. businesses are currently using hosting cloud services, up from 48 percent 18 months ago, CIF reported.

As organizations of all sizes continue to struggle through the ongoing economic crisis, decision-makers need to consider using the cloud if they want to remain competitive and reduce unnecessary spending. Deploying cloud computing is especially important for SMBs that have fewer resources to waste than enterprises.

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