Small and medium enterprises (SMEs) have been the hardest hit by the recession and are turning to cloud computing technologies to recoup financial losses.
ITWeb, in partnership with MWeb Business and Microsoft, will hold a free executive forum entitled “Hosted applications for SMEs”, on 16 March at the Southern Sun Grayston Hotel, in Sandton. The event will reveal how SMEs are improving return on investment through cloud computing.
The vast majority of SMEs (86%) claim the recession has affected their business, according to the SME Survey 2009 conducted by World Wide Worx.
Arthur Goldstuck, MD of World Wide Worx, says while SMEs have not yet discovered cloud computing as a strategy or deliberate process, they are increasingly turning to cloud-type applications and hosted services.
“We have been quite surprised in our research to see how much use SMEs are making of hosted e-mail in particular,” explains Goldstuck. “They are also beginning to discover online backup, as well as specific applications like online accounting, CRM and the like.
“However, the classic office-type applications, like Word, Excel and PowerPoint, remain firmly tethered to the desktop screen. The applications that are being embraced are the ones that make sense in an online or cloud context, are not too bandwidth-intensive, and work more efficiently there.”
Goldstuck adds that solutions for SMEs are about cost-effectiveness and overall efficiency, and have to be obvious in terms of benefits, as well as easy to implement.
According to Goldstuck, SMEs have not yet bought into the idea of renting software. However, he points out that SMEs are increasingly geared to paying subscription fees for accessing online services. “And that is where the cloud will draw them in, rather than directly through hosted applications.”
Bandwidth barriers
ITWeb's Hosted Applications for SMEs, in partnership with MWEB and Microsoft
More information about Hosted Applications for SMEs, which takes place on 7 May 2009 at The Forum in Bryanston is available online here.
Bandwidth limitations are the main obstacles to providing cloud computing as a standard service in SA, warns Goldstuck. “However, as ADSL becomes a standard form of connectivity among SMEs - 74% have it as their primary form of connectivity - speed is no longer as severe a drawback for basic hosted applications, but would of course prevent more resource-heavy applications from gaining any kind of penetration.”
Goldstuck notes: “Bandwidth caps remain a major obstacle, as hosted applications tend to be fast consumers of data capacity. Those that require minimal transfer of data have greater potential in the short-term.
“This is one of the great benefits to individuals, small businesses and the economy as a whole that will accrue if bandwidth caps go away or become dramatically more generous,” he concludes.
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