Cloud-based computing is rapidly losing its appeal for small firms - with over a third saying they have no intention to upgrade to the new technology.
A study of 251 small businesses, commissioned by ISP supplier, Easynet Connect, found that although a third of small firms were already using some form of cloud computing, a higher proportion (34%) had no plans whatsoever to follow suit – an increase of 7% since Easynet’s 2010 study.
Cloud computing - the process of streamlining connectivity by moving applications and data onto the web - has been widely tipped as the next big thing in business. However the report revealed that many small firms increasingly see the new technology as an expensive luxury.
Up to 29% of those with no intention of upgrading said that they saw nothing wrong with their existing IT systems and a further 20% stated a lack of funds as an obstacle to adoption. Other reasons given included a lack of awareness of the new technology (25%) and security concerns (16%).
Furthermore, of those that did plan to adopt cloud computing, less than half had a formal strategy in place for doing so - and only 30% planned to upgrade their internet connections to cope with the increased demand.
Andy Horn, general manager of Easynet Connect, said: “The challenging economy shows no sign of abating, therefore it’s critical that businesses are proactively leveraging technology to make sure that they are as efficient as possible.”
He added: “The gap in attitudes that we’ve identified in itself is worrying, however the low levels of planning – especially around the internet connectivity that [small businesses] will need in the Cloud – highlights the need for specialist advice and high quality solutions based on the latest fibre technology.”