SMBs enjoy public cloud cost savings
Businesses around the world continue to struggle in today's unpredictable economy, unsure of what technologies to invest in and how to gain an advantage over rival firms. While this is a challenge for large enterprises, it can be even more difficult for smaller companies that have fewer exhaustible resources and tinier wallets.
Yet small and medium-sized businesses (SMBs) are seeing an answer to this struggle in cloud computing, as the hosted technology promises to reduce expenses, improve internal operations and give users access to mission-critical resources from virtually anywhere. These benefits, in addition to taking advantage of an extremely scalable infrastructure, make it easier for firms to adopt technological trends such as mobility and big data.
A recent report by TechNavio highlighted the growing SMB cloud market, noting that it is forecast to expand at a compound annual growth rate of more than 18 percent between 2012 and 2016. This is largely because decision-makers see the cost-saving benefits associated with adopting public cloud service, as these are managed off-site and requires less maintenance.
Public cloud takes the SMB limelight
Small companies are in a constant struggle with rival enterprises that are able to invest in a wider range of technologies without worrying about constraining the budget. SMBs, on the other hand, are often plagued with fewer finances and need to ensure each venture provides a sound return on investment - a quality for which the cloud is well known.
"Public cloud services are finding higher prominence among the cloud-based application services," one TechNavio analyst said. "Public cloud services require lower capital expenses and are available at lower costs compared to private cloud hosting. Small and medium-sized businesses have a lower budget for operations and prefer public cloud services to meet their business requirements."
A separate report by Parallels highlighted similar findings, noting that the SMB cloud market is forecast to generate more than $95 billion in revenue by 2015. This is largely because executives require the storage and other infrastructure offerings available through the cloud, especially as companies continue to be inundated by massive volumes of digital information.
SMBs are often considered the lifeblood of the economy, as they provide myriad jobs, services and revenue to the overall economy. By using the cloud, SMBs can reduce expenses and be more efficient with spending, allowing them to expand and be even more useful to the development of a more resilient private sector.
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