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SMBs and young companies drive adoption of cloud services

Posted by Sean Houghton | 18-Aug-2015 10:36:53

 

A recent report by US-based cloud software specialist, BetterCloud, highlights the growing adoption of cloud services among organisations, and particularly SMBs.

The survey, which interviewed 1,500 IT professionals in organisations from 53 countries, reveals that an increasing number of organisations are abandoning legacy applications, such as Microsoft Exchange, for lighter, more nimble replacements, such as Microsoft Office 365 and Google Apps.

Responses revealed that just 12 per cent of all companies currently run 100 per cent of their IT from the cloud. However, by 2020 almost 50 per cent of respondents said they will have moved their entire IT function into the cloud, and by 2025 that number will climb to nearly 70 per cent.

Interestingly, it is SMBs that are leading the charge. Currently, around 18 per cent of SMBs run their entire IT function in the cloud, but that figure is expected to leap to 50 per cent of all smaller organisations within five years.

To put that in perspective, large enterprises lag SMBs when it comes to cloud migration by around five years. Currently no large organisations run their entire IT function in the cloud, and not until 2025 will 50 per cent of large enterprises run 100 per cent of their IT in the cloud.

The quicker adoption rate by SMBs gives them a distinct advantage, allowing them to adapt faster, scale up and down according to demand, transform their organisation quickly, and to offer flexible working practices, which have been shown to boost productivity, agility and employee satisfaction.

Interestingly, the survey showed a schism between companies using Google Apps and those using Microsoft Office 365, with 66 per cent of Google Apps customers expecting to run 100 per cent of their IT in the cloud by 2020, compared to just 49 per cent of Office 365 customers. This is probably due to the fact that larger enterprises have tended to favour Microsoft tools for many years, while younger, smaller companies tend to opt for Google Apps.

Much like it does for smaller organisations, the cloud also offers younger companies an advantage over those deeply entangled in legacy systems, according to the report. The majority (66 per cent) of all organisations younger than five years old expect to run 100 per cent of IT operations in the cloud by 2017. In comparison, only 9 per cent of organisations more than 20 years old expect to be running their IT function fully in the cloud by 2017.

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The average number of cloud applications used by SMBs is also set to grow rapidly, almost doubling from an average of seven cloud applications today, to an 13 cloud applications per SMB by 2017. In comparison, enterprise organisations expect to run, on average, 52 cloud applications by 2017, up from 18 today. However, as revealed by the survey, larger enterprises will continue to run on-premise, legacy systems alongside their cloud applications for the foreseeable future, while younger companies are embracing cloud applications much earlier..

The results of the survey show that organisations of all ages and sizes are embracing cloud services, not only for running office systems and single applications, but also for their entire IT infrastructure. It may be that we have reached a tipping point for the adoption of cloud services.

If you would like to find out more about migrating some or all of your IT functions or applications to the cloud, please contact us at www.aztechit.co.uk to discuss your unique requirements. As an independent managed services provider we seek to find the right solution for you, in order to meet your exact business requirements and goals, now and in the future. Get in touch today.

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Topics: SMB's, Cloud Services, Cloud Office 365, Aztech IT, cloud solutions, microsoft office 365

Written by Sean Houghton

Commercial & Operations Director at Aztech

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