Small Percentage of Small Businesses Know About Cloud Computing

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July 20, 2010

Small Percentage of Small Businesses Know About Cloud Computing


By Anuradha Shukla
TMCnet Contributor


For the techno-savvy people “cloud computing” is not something strange. But you will be astonished to know that some small business are totally unaware about cloud computing. A recent survey on small business within the United States, United Kingdom, Germany, Italy and Brazil, shows that only 37 percent of small businesses have heard about cloud computing.

The findings were released based on primary research conducted by Techaisle in the months of May-June 2010.

Techaisle’s report says that among those who have heard about cloud computing, 13 percent said that they did not know what it meant. Some 44 percent of the respondents think that cloud computing means subscribing to services such as servers or storage hosted by a third party and 29 percent think that it means access to applications over the web. Even among the 29 percent of small business that use SaaS (NewsAlert), not all of them have heard of cloud computing.

Clearly a tremendous education initiative has to be undertaken by both the channel partners and IT vendors to articulate the use of cloud computing. The vendors are busy courting large enterprises as they are easily identifiable and have established IT departments. Small businesses do not generally have IT departments let alone knowledge and focus on cloud computing.

The Techaisle survey reports that channel partners are most effective in approaching small businesses regarding cloud computing. To that extent the vendors are empowering the channels, then they are certainly succeeding. But it may be opposite – that channel partners in order to survive are changing their business model to embrace cloud computing.

Some 26 percent of small businesses have heard about cloud computing from their channels while only 13 percent have heard about it from an IT company. And 25 percent of small businesses have also heard about cloud computing from blogs/forums and other social media websites.

While it may be said that the use of cloud computing among small businesses is on the rise there is definitely confusion and lack of knowledge about what it really means. Of those with dedicated channel partners, 48 percent say that their channels have approached them with some cloud computing offering.

For more information, read a related article on TMCnet “NASA’s Nebula Cloud Computing Technology to Play Key Role in New Open Source (NewsAlert) Initiative.”
Anuradha Shukla is a contributing editor for TMCnet. To read more of Anuradha’s article, please visit her columnist page.


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