The Cloud Enables SMBs to Compete with Giants

Cloud computing is technology that’s based on using the internet to access programs and computing resources. Having software or data in the cloud means small-to-midsize businesses (SMBs) don’t need as many resources to manage them, and these companies can benefit from economies of scale in the process. The cloud has given SMBs access to computing resources that would otherwise be unavailable to them, and it has become indispensable for competing in markets that would otherwise be dominated by large corporations.

In many cases, SMBs make the decision to move from on-premise software and data storage solutions to the cloud because it is affordable. Upfront costs are generally low, maintenance and security costs are minimized, and upgrading is much simpler and more affordable with the cloud infrastructure.

So it’s no wonder, that since the COVID-19 pandemic started, cloud computing adoption has rapidly advanced, with 94% of all enterprises now using cloud-based services. Here, we explore some of the key reasons why we have seen such a dramatic rise in SMB adoption of cloud services.

The cloud is economical

Small-to-midsize businesses operate with lean staffs. They generally don’t have IT departments that can handle purchasing, installing, maintaining, updating, upgrading, and securing software and hardware. Moving to the cloud means there is little equipment to maintain, aside from PCs and other devices that can access the internet. In fact, bring your own device (BYOD) policies often save SMBs additional funds, since employees can safely and securely use their own laptops, tablets, and smartphones.

The above cloud services are purchased through subscription models that bring economies of scale to small businesses. Subscription models minimize upfront costs, and that allows SMBs to get the cloud-based services they need, when they need them, even on a tight budget.

Productivity improves and remote work is possible

With physical servers installed in a facility and software loaded onto these servers, employees have to work in the office, unless they have VPN access. Cloud-based software enables employees to work at any time, from any location, as long as they can log into their online accounts. Access to third parties, partners, and consultants can easily be granted and restrictions can be lifted when necessary.

Cloud-based communication, meeting, and collaborative software allow businesses to hire dispersed teams, which means they are not limited to talent within driving distance of their workplaces. Project management is easy with cloud-based software; team members simply collaborate by placing and working with documents and resources online.

Without the cloud, many businesses would not have been nimble enough to adapt to the pandemic, especially during lockdowns. And now that so many workers have had experience working remotely, this trend is here to stay. Approximately 34% of workers say that they prefer to work remotely in the cloud and will look for a new job if they are required to return to the office.

Networks are reliable and secure

In the twelve months before November 2021, 63% of SMBs reported at least one data breach, and 43% of SMBs lacked any type of cybersecurity defense plans. The average cost of a data breach for SMBs is $2.98 million, and only 47% find breaches within days. Speed is essential to recovery.

Through economies of scale, cloud computing makes the most sophisticated cybersecurity software and behind-the-scenes personnel available to small organizations. When there is a cyber threat or a breach, dozens of highly trained IT security experts are on the case, compared to the 1-4 employees that a typical SMB might have on hand if not for the cloud.

Cloud-based enterprise resource planning software integrates security and reliability into a subscription-based comprehensive business software package. Managed service providers (MSPs) enable SMBS to affordably manage networks and devices, maintain 24/7 data monitoring and backup, and even afford live threat or attack responses. Without the cloud, these security and reliability features would only be available to larger organizations.

If your SMB isn’t yet harnessing all of these benefits from being on the cloud, 2022 is the year to consider doing so. Making the switch is often much easier than you might anticipate, and the benefits begin from day 1.