Local small and medium enterprises (SMEs) are increasingly moving to the cloud, with more than three out of every four smaller entities making use of the service, according to recent research.
In addition, the local research, carried out by Ipsos Mori, found that shifting to the cloud - and becoming tech-savvy - makes companies more likely to hire additional staff, and grow their top line. It notes that 42% of tech-savvy companies have experienced job growth, compared with only 21% of tech followers.
The research was commissioned by Microsoft and builds on its initial investigation - undertaken by the Boston Consulting Group - into 4 000 companies in 24 countries. Most local SMEs - 96% - cited data security and loss of control of data as concerns when using new technology. Reliability (95%) and cost (94%) were also listed as key concerns.
Investing
Ipsos Mori's research, based on the Boston Consulting Group's methodology, surveyed 100 SMEs during a one-month period, between mid-February and mid-March. It also noted that 60% of SMEs see mobile solutions as a priority for future investments, with about half seeing the cloud and big data as future priorities.
Pierre Nel, small and medium business director for Microsoft's Middle East and Africa region, says the survey also shows SMEs will spend a combined $800 million on the cloud in 2017. Small and medium enterprises make up about 50% of SA's economy, and the bulk - at 61% - of the workforce.
Data backup is seen as the major benefit of moving to the cloud for 75% of technology leaders, while 86% of tech followers view the major benefit of cloud computing as greater reliability and less downtime.
Global view
Nel adds tech-savvy businesses in what Microsoft views as large economies - China, India, the US, Brazil and Germany - report revenue growing 15% faster than those who are not in the cloud. Job growth was at double the rate, he adds.
Tech-savvy companies are also six times more likely to have international customers, while almost 20% have staff in other countries, says Nel. He notes almost two-thirds of companies that are in the cloud see technology as a way of growing jobs and profits.
Meanwhile, an infographic by Towergate Insurance, which can be accessed here, shows that - of the UK respondents surveyed - 95% of people use the cloud, but are not aware of it. It also notes the sector will grow from a $16.7 billion industry in 2013 to being worth $40 billion by 2020.
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