Companies turning to the cloud to drive costs down

Companies turning to the cloud to drive costs down

The technology being used in small to medium-sized businesses (SMBs) across the UK has advanced at a rapid pace over the course of the last few years, but has now been challenged by an increasingly difficult financial climate.

Complex IT infrastructures have had to be made as efficient as possible in order to generate the same eye catching results, while also keeping costs down.

According to a recent report, nearly three quarters of IT directors have stated that they believe much of their in-house computing is becoming too excessive, with unnecessary functionality adding to upgrade and running costs

Such an attitude has led to 62 per cent of the 100 UK IT directors responding to the poll, conducted by Vanson Bourne and Damovo, which said that they now considered the cloud to be the best option in terms of keeping a lid on costs, while also allowing them to regain control over the organisation of the software packages they use.

"Organisations are increasingly finding they have a whole host of application functionality that goes unused," said Alex Williams, operations director, Damovo UK & Ireland.

"Unfortunately, businesses end up paying for this functionality when they upgrade to the latest version, whether they want it or not. Cloud services are the natural remedy, giving businesses back control over which functions they buy and cutting down the bloat in on-premise applications."

However, despite such positives, many IT executives are still concerned over the issue of security, with 60 per cent claiming that they feel less comfortable with placing applications such as company payrolls onto offsite storage.

The integration of cloud services with on-premise applications is also creating challenges, with 60 per cent of IT directors stating that such concerns have delayed the move to the cloud.

Having said that, 78 per cent of IT directors said that basic office applications such as Microsoft Office and Google Apps were ideally suited to cloud use, along with telephony and contact centres, as well as email.