An article published by Jordan Golson from GigaOM and simultaneously ran by the New York Times discusses how small businesses are taking the Cloud — that is, Web-based services, applications or platforms. The results are not exactly promising for people who operate Cloud-based services who target small and medium-sized businesses. In fact, a majority of small businesses prefer on-site, local software and services. Let’s talk about it.
Re: Small Biz Keeps It In-House, Not Crazy About the Cloud (NYTimes)
The 2009 survey of over 1100 small and medium-sized businesses, conducted by IT software company, Spiceworks, they included every “Cloud” implementation from data backup to Web hosting for the consideration. This is important because it means there was a lot of ambiguity in how participants might have answered. In light of increasing budget for IT services and software, on average of 27%, those dollars aren’t exactly living on Cloud Nine.
I can probably understand why some folks aren’t choosing Web-based services — trust. There is something truly remarkable about having a nice burned DVD backup of data, even a USB drive or even an attractive external hard drive. Those devices, we can trust because we can actually hold and take the data physically with us and they are relatively low-maintenance. I get it, I know. I’m the same way at home and it’s where I keep all my music, documents and photographed memories. (Although, I’m breaking away from old habits lately with the help from Flickr, Google and my Web server.)
Small business users desire speed and reliability. I know this because this is the top thought on the minds of our users; this is especially true considering we specifically serve “true small businesses.” Web-based “Cloud” services have improved in recent years — offering various packages, affordable plans and tailored services positioned for any individual or larger company who wishes to use their services. I’ve yet to hear of a massive data loss or similar crisis from top companies who live in the Cloud.
In fact, the only recent negative buzz about the Cloud’s security, is best represented by Twitter’s usage of Google Apps, when CEO of Twitter was compromised in order to gain access to the company’s online documents. I don’t find fault with the use of Cloud applications because of this story — as the culprit of the exploit only used social engineering to defeat security mechanisms, not actual entry into the premises.
It’s my experience that lends that hardware become obsolete very quickly before desired value is achieved. Conversely, software often outlives hardware and provides more value for a longer period of time. So, why is it that SMB’s are investing 37% of their IT budgets over to hardware instead of 24% of software? I don’t know; I do know the benefit of the ‘Cloud’ offering is in the convenience and savings in hardware by letting the provider take care that ‘stuff.’ Personally as a potential small business owner, I’d invest in economical laptops so employees can work offsite or onsite and be able to access their Web based apps anywhere.
I believe small businesses really do want to float on Cloud Nine — they want the low cost, high value that Web-based apps offer. I have a feeling they need to see the value, an instant quick-win, that will justify changing processes and making the big “switch” to the Cloud. That is, Web-based providers need to demonstrate the value their services provide to small businesses and provide case studies from before implementation to post-implementation. (We have a few.) Take this blog post for instance, I wrote this entirely from Google Docs at no charge.
How about you?
[Photo by akakumo on Flickr]
Posted In: Technology
