(WEB HOST INDUSTRY REVIEW) — Small and medium-sized businesses would like to benefit from shared and on-demand resources, yet few understand the benefits of cloud-based solutions, according a new study commissioned by online business solutions provider Verio (www.verio.com). With the proper knowledge and education on a cloud technology, nearly 30 percent of SMB decision makers said they would implement the solution within a year, while 13 percent would implement a solution within three months, if the benefits of cloud were clear.
According the results of the independent survey of more than 500 SMB decision makers released this week, 30 percent said they are looking to minimize technology costs, and still want superior technology and services. More than half of the respondents said the ability to share IT resources is most important to them, and 42 percent said the use of on-demand resources is a high priority.
“The technology needs of small business decision makers continue to evolve, opening the door for innovative technologies designed to drive efficiencies,” said Mitch Merrifield, Senior Director of Managed Computing Solutions for Verio. “With these trends recognized as high priorities, we expect to see solutions such as virtual servers and cloud computing being utilized more and more by small businesses.”
The survey revealed, however, that despite the hype surrounding the term “cloud computing,” a majority of SMB decision makers still lack an understanding of its benefits. In fact, 72 percent of respondents indicated they know the same, or even less, than they did last year about cloud computing solutions.
“One of the main factors leading to confusion surrounding cloud is that the technology is emerging and still being defined,” Merrifield said. “At its core, a cloud solution can help SMBs share on-demand resources in a highly scalable, pay-as-you go environment to minimize technology costs. With the SMB market on the cusp of understanding its value, we predict that 2011 will mark a significant shift in the viability of cloud offerings with small businesses.”
Despite its benefits, it appears that CIOs are still uneasy over a particular strand of outsourced IT, security, causing them to consider bringing management-related technologies in-house. According to a survey by independent technology analysis firm Ovum (www.ovum.com), which polled more than 500 CIOs, organizations are contemplating reducing the outsourcing of security and other IT management applications.
“The main reason for this shift away from IT security outsourcing is most likely a lack of confidence,” Ovum senior analyst Rhonda Ascierto said in a statement. “Organizations are now more subject to compliance considerations in the form of both formal external and internal policy-driven requirements, particularly in the wake of the US banking controversies and other financial scandals.”
A striking trend revealed by the survey, the planned reduction in IT security outsourcing Ascierto said is “also likely to be due to some organizations grappling for more control over their IT operations, of which security is a central aspect.”To gain clients’ trust, the study suggests that outsourced IT service providers provide quantitative assurance, which tends to be difficult for any outside service provider to provide. With IT security outsourcing, however, any failings within an agreed upon contracted aspect of the IT operation could impact the whole business.
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