Most SMEs will use cloud computing in 2010

Small firms are finally seeing the advantages of cloud computing

More than half of small and medium sized enterprises (SMEs) are planning to use cloud computing technology this year, according to new research published today by internet service provider Easynet Connect.

The report found that the figure had jumped from 22 per cent in October 2008. SMEs planning on implementing the technology over the next five years, meanwhile, had risen from 47 per cent in 2008 to nearly three-quarters in 2009.

SMEs also appear to be seeing the benefits of cloud computing, and 51 per cent now believe that the technology could save them money, up from 35 per cent the year before.

A further 43 per cent surveyed said that cloud computing could also help to enable staff to work from home, up from 35 per cent in 2008.

However, despite this growth, 85 per cent of SMEs questioned have no plans to take on any extra security measures, while 71 per cent have no formal strategy in place for implementing cloud computing.

Gareth Williams, a senior analyst with Analysys Mason, believes that telecoms companies pushing the service to existing customers may account for the growth in cloud computing take up among SMEs.

"For companies already supplying businesses it makes sense to try and cross-sell additional services like cloud computing, and for many larger enterprises the use of cloud computing does make sense," he said.

However, Williams warned that time would tell as to whether cloud computing takes off in the way that has been predicted. He likened it to the 'explosion' in hosted VoIP services that has failed to materialise to the extent that was envisaged.

The analyst also said that he was not surprised to see that most businesses had not made security or strategy provisions for cloud computing.

"As many businesses are only now starting to look at the use of cloud computing, it is likely that they have only just started to consider the necessary measures that need to be taken to best implement and manage a cloud computing service," he said.