Business prefers local cloud providers

data centre proximity to be 'highly important', reveals One Stop Click.

According to new research from cloud computing expert Microsoft, 82% of the more than 3 000 businesses it surveyed across 16 countries said having a vendor with a local presence was essential.

Microsoft claims that while managed hosting could be successful when the solution is based overseas, many firms felt more trusting if their data was stored in their own backyard.

Marco Limena, VP of business channels at Microsoft, says there will be an increasing blend of on and off-premises cloud computing solutions available to small and medium-sized enterprises (SMEs) in the future, and this will only strengthen demand for local provision.

According to the survey, nearly four in 10 SMEs (39%) plan on using cloud services at least once during the next three years, XLN Business Community reports.

It found that those paying for cloud services will be using 3.3 services on average - up from less than two at present.

The survey was conducted during December 2010 by emerging technology consultancy Edge Strategies, writes Datamation.

"Within three years, 43% of workloads will become paid cloud services,” the report said. Despite that shift, though, 28% of workloads will remain hosted on premises, while 29% will be “free or bundled” with other services.