Cloud computing ‘remains a mystery’ to SMEs

Adoption of cloud computing in small and medium enterprises (SMEs) may be on the rise but many companies remain clueless about the technology.

This was the finding of a new survey by PeoplePerHour.com PeoplePerHour.com. After talking to 1,300 SMEs across the UK, it discovered almost three quarters of the respondents (74 per cent) didn't use cloud computing and 43 per cent of those didn't even know what the term meant.

Furthermore, more than a third (36 per cent) of those who did understand what the technology was didn't see a need for incorporating it into their companies.

Xenios Thrasyvoulou, chief executive and founder of PeoplePerHour.com, said: "UK SME owners have successfully incorporated a wide variety of technologies into their business models over the past few years. Yet this survey highlights the confusion and a possibly even a sense of scepticism that many small businesses have over cloud computing."

"Small businesses are yet to be convinced of the advantages of accessing the amount of computer processing power and memory available online. Although the uptake is improving, the vast majority of small businesses are still voting with their wallets."

The common reason many companies cite to avoid moving to the cloud is security but only nine per cent of the respondents said this was the issue holding them back.

However, 10 per cent saw the technology as too expensive and two per cent claimed the cloud wasn't reliable enough.

Thrasyvoulou concluded developers in the software as a service (SaaS) market would have to work harder to win over SMEs and ensure specific products were made available targeted at smaller businesses.

Last week, a report from IDC showed positive signs in the UK cloud market as it predicted the Government was set to ramp up its use of the technology.