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Cloud computing baffles SMEs

Admire Moyo
By Admire Moyo, ITWeb's news editor.
Johannesburg, 24 May 2011

Cloud computing baffles SMEs

[EMBEDDEDIf the results of a recent survey commissioned by Verio are any indication, IT professionals at small and medium-sized enterprises (SMEs) are not quite ready to put their faith in the cloud, reveals Cloud IT Pro.

The study shows that more than two-thirds of respondents are uncertain if they will purchase a cloud solution in the near future.

“SME decision-makers wear many hats. One day they may be managing human resource matters and next they are making updates to their Web site,” says Mitch Merrifield, senior director of managed computing solutions for Verio.

“Emerging technologies always seem to have some barrier to adoption, and for SME decision-makers who aren't exclusively focused on IT, implementing a technology like cloud can be daunting.”

The survey also found that 19% of SME decision-makers are looking to cut technology costs, an improvement from 30% from last year, so the SME appetite to purchase IT solutions continues to grow, notes My Host News.

Other findings include a sustained focus on building out and maintaining IT infrastructure as well. “There are several considerations, including use cases, benefits, applications and purchasing, when SMEs are deciding how to best implement IT solutions such as cloud,” states Merrifield.

“We believe that as their understanding of these key factors and benefits evolve, this will significantly contribute to the adoption of cloud technologies in 2011 and beyond.”

On the other hand, according to Information Management, as more small businesses deploy data to the cloud, they are doing so in packaged bundles, according to new research from analyst firm AMI-Partners.

Culling information from two studies - SMB Cloud Overview and SMB Cloud Playbook - AMI found that 38% of US SMEs are interested or involved in obtaining SaaS as part of a package or bundle, as opposed to 11% interested only in a single service.

About 33% indicated interest in bundling multiple hosted infrastructure and remotely managed offerings, with 9% notching as a single service.

Overall, AMI says SME technology buyers are funnelling more money towards cloud-based services, with 10% of spending dedicated to virtualisation in 2010, but an additional 15% expected by 2015.

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