Cloud is good for business: Report

 

Small to medium enterprises (SMEs) who use cloud computing are much more likely to have seen a revenue rise over the past year than those who do not. What’s more, they are more likely to increase their revenue in the coming year.

According to the March 2013 MYOB Business Monitor, those who use the cloud are 106% more likely to have seen a revenue rise in the past year than those who don’t. Similarly, those with a website are 60% more likely to have seen a revenue rise over the same time period.

However, the study by research firm Colmar Brunton found that only 16% of SMEs use the cloud, compared to 14% in the July 2012 report. And only 38% of SMEs have a business website. This figure is unchanged since July.

 “It’s obvious that as time goes on Australian business operators using cloud computing are increasingly likely to achieve positive financial results. That said, I’m surprised fewer than one in every six say they use cloud in business. This ubiquitous technology has helped so many smaller businesses become better connected, more productive and more competitive,” CEO Tim Reed said in a statement,

“Our research findings provide a clear cut case for embracing online technologies in business. The latest study reveals SMEs using cloud were twice as likely to see a revenue rise in the past year than those who aren’t. It’s similar for those with a business website, who were almost two thirds more likely to see a rise than their peers."

Furthermore, Reed pointed out that the gap in financial performance between “the online-savvy and the online-cautious” is only getting bigger. The gap has widened since a study 9 months ago.

 “It’s also clear the majority are unaware of the value in having even a simple website that contains their contact details. Many businesses have first-hand experience of the benefits of being found online, being able to attract and retain customers in this way. Our research proves it can have a tremendously positive financial effect,” Reed said.

The study also found that those who use cloud computing are more likely than those who don’t to see revenue increase in the next year. And such businesses are also more likely to be optimistic about improvements in the economy.

Why don’t those SMEs use the cloud?

According to the survey, the top reason was ‘I don't know enough about it to make the right business decisions about it’ (35%). Ranked second was ‘I am not very tech-savvy and don't feel confident about even starting to look at it for my business’ (22%), followed by ‘It is of interest, but there are many more important other business priorities to take care of first’ (21%).