Small businesses not taking full advantage of cloud technology

Small businesses not taking full advantage of cloud technology

Small businesses across the UK are failing to invest enough in cloud technology, a new survey has suggested.

Cloud technology has long been touted by experts as being a great driver for small companies looking to expand, but a report from the Federation of Small Businesses suggests that while many organisations claim to be aware of the benefits, few are actually implementing such as system.

According to the findings, 59 per cent of small and medium enterprises (SMEs) believe that investing in technology is an important factor to creating a good business, but only 26 per cent have actually done so.

The companies that have introduced the technology have also reported a high level of satisfaction.

When asked about specific benefits, 62 per cent of SMEs using cloud technology said that the level of communication with their existing customers had improved.

A further 59 per cent said that the technology also helped to boost business innovation.

The figures come on the back of research from Nucleus, which was released last month and showed that not only does cloud technology offer practical benefits, but it also costs a fraction of the price when compared to on-site facilities.

Because it is web-based, software accessed through cloud technology is constantly updated, which can save businesses a lot of time and effort.

For example, payroll and HR software on the cloud can be upgraded automatically so that it fits with the latest legislation passed by government, eliminating the need for constantly re-installing software.

Hosting software in-house, which then has to be maintained by an IT department, is the only real alternative to cloud technology, and some believe that there is a very clear reason why certain businesses are not prepared to change the way they run things.

According to business blogger Gareth Cartman, this advantage is also one of the reasons so many SMEs have been slow to make the move, as it stands to put many IT departments out of business.

In a post for erpcloudnews.com he explains: "In some cases, an IT department voting for cloud technology looks like turkeys voting for Christmas. This is why a move to the cloud has to be led from the top of an organisation."