According to a new IDC InfoBrief, sponsored by SAP, small and midsize enterprises (SMEs) are rapidly adopting cloud-based services as they become more familiar and comfortable with online resources, and as they realize the cost efficiency and productivity benefits of the cloud.
In the report — Sharpening the Small Business Competitive Edge – Is the Time Right for the Cloud? — it is noted that through 2018, IDC expects 43 percent of SME IT budget increases to go toward either cloud or mobile technology enablement, and for the two categories to drive more than a quarter of all IT spending during the same period.
The adoption trend among SMEs follows that of larger businesses over the last several years: 81 percent of U.S. companies with more than 100 employees use the cloud now, and by 2016, IDC predicts that 80 percent of the world’s 2,000 largest companies will use the cloud for half of all their IT processes. In a 2013 survey of U.S. SMEs, the top five reasons cited for adopting cloud all had to do with the ability to lower or control costs, and reduce current IT workloads.
Moreover, IDC identified a clear correlation between cloud use and revenue growth: SMEs who use the cloud are almost 70 percent more likely to achieve annual revenue growth of 10 percent or more, versus their peers who do not use the cloud.
Download the full IDC InfoBrief for more insight on the above findings, as well as IDC’s recommendations for how SMEs should start their migration to the cloud:
Alain McHugh is senior director of SAP Business One Marketing.
Top image: Shutterstock