Cloud computing booming as small businesses cut down on expensive software

Most of the UK's small businesses will be using 'cloud software' solutions in some form by the end of 2010 according to a new survey, as the downturn forces companies to look for alternatives to the more expensive traditional software offerings.

What is Cloud Computing?

A recent article about the benefits of cloud computing describes what cloud computing is in detail, but in a nutshell, it is "putting software and data on computer equipment in a safe and secure location 'somewhere' on the Internet. The location doesn’t matter as long as it is 'well connected' and allows access to this data or software from anywhere in the world."
Cloud Computing and small businesses

According to the Gooroo Software survey, 12% of respondents were already using cloud software solutions (or 'SaaS' applications). 31% said they planned to start using such products by summer 2010, and a further 11.5% would do so by the end of 2010.
Respondents listed the benefits they expected to gain from cloud applications, with the majority (65%) naming an overall reduction in IT costs. Improved efficiency (50%) and greater working flexibility (50%) were next highest, with easy set-up and management close behind at 46%. Access to business applications from any location was also rated highly (42%).

The cloud applications that survey respondents believed would most benefit their businesses are new accounts / financial software (50%); retail and e-commerce management software (25%); stock control (22%); enterprise resources planning (ERP - 21%) and CRM (18%).

The current economic climate was also forcing SMEs to change their plans to buy or update business software. 40% said they had already changed their plans, and 21% planned to postpone spending until the situation improves.

www.ukba.co.uk