New research published by the Federation of Small Businesses shows that a significant number of small firms remain wary about adopting cloud technologies, due to the perceived risks.
Approximately sixty per cent of small firms use some form of cloud computing service. Those that choose not to list their top five concerns as: data loss/theft (61%), reliable access to online services (55%), who would have access to the data (53%), liability issues (41%), and over-dependence on cloud computing services (33%).
While the research shows many small businesses recognise the advantages of cloud computing services, there are clearly concerns surrounding the security of sensitive data and the reliability of the service. Businesses don’t want to transition to cloud-based systems without knowing who will be liable if it all goes wrong.
However, research has also shown that there are significant gains to be made from using this technology, so it is imperative that more is done to address these reservations. Here’s a few useful statistics that could help do just that:
- A 2012 European Commission report found that adopting cloud computing meant 80 per cent of organisations could potentially reduce their costs by around 10-20%.
- There are also green benefits, with one study indicating that the energy footprint of small firms can be reduced by up to 90% by moving tasks online and reducing the need for paper.
So what exactly are ‘cloud services’?
According to the FSB, the most common services used by small businesses include file storage (74%), web based email and calendars (67%), file sharing (64%), web-based office software (38%) and accounting and invoicing (3%).
For example, cloud accounting is a platform allowing you to store your financial data on a server and access it remotely – anytime, anywhere and from any device. The data is stored in the ‘Cloud’, a huge web-based facility supported by massive server ‘farms’, which allows data and resources to be centralised, stored and accessed by anyone with a suitable device.
What else is seen as a barrier?
The FSB asked small businesses what changes might persuade them to use cloud computing services. Half of all respondents wanted ‘plain English’ terms and conditions (48%), and nearly as many wanted simpler and more transparent pricing (46%).
Clearly there is a lot more that the industry and regulators can do to reassure businesses that their data is safe and secure. However, equally apparent is the message from small businesses that pricing and terms and conditions need to be much more transparent.
What reservations do you have about cloud services? Have cloud services changed the way you do business? Let us know in the comments below.