Small firms shy away from hosted services

Small businesses are unwilling to use hosted services, according to newly published research commissioned by Microsoft.

In a survey of 5,000 small businesses fewer than half of respondents would consider paying for hosted services, and only 52 per cent thought that they needed broadband software hosting services such as those used by larger companies.

Small businesses were most happy to outsource spam filtering, internet email services and mobility technology. Barely half, however, wanted a third party to manage their virus protection.

"Operators and service providers recognise that they can create new revenue streams by delivering a range of value-added internet services, particularly to the smaller business segment," said James Murfin, hosting manager in the communications sector at Microsoft.

He added that Microsoft sees the lack of services currently purchased by smaller firms as a market opportunity.