Could 2010 really be the year of the cloud?

According to a new report by business ISP Easynet Connect, there is growing enthusiasm for cloud-based IT services from SMEs

Compared to a previous report from Easynet Connect in October 2008, there is a significant increase in small businesses using or planning to use cloud computing within 12 months (up 28 percent to 50 percent). Those with longer term plans to deploy cloud computing within five years has gone up by approximately two thirds, rising from 47 percent in 2008 to 73 percent in 2009. In addition, the number of businesses stating they would never move into the cloud has halved over the last 15 months from 53 percent to just 27 percent of those surveyed.

However, despite the apparent move to the cloud, the last 15 months has seen little increase in the number of businesses putting in place safeguards such as increased security and more reliable internet connections, says the research. For example, 85 percent do not plan on taking extra security measures and 71 percent do not have any formal strategy in place for implementing cloud computing. In addition, more than 80 percent of businesses are not planning to increase their internet bandwidth and the majority of respondents (80 percent) are still using asymmetric connections such as ADSL broadband as part of their connectivity packages, as opposed to symmetrical connections such as SDSL and leased lines. This means many businesses may be lacking the bandwidth and, more importantly, the upload speeds needed to fully support cloud computing.

Meanwhile, SMEs appear to be more convinced than they were in 2008 by the main benefits of cloud computing. Whereas in 2008, 35 percent believed cloud computing would save them money, this has climbed to 51 percent. Similarly, in 2008, 35 percent saw cloud computing as helping to enable home working, now 43 percent consider this to be true.

Chris Stening, MD of Easynet Connect, said “Cloud computing has been on the business radar for some time and our report proves that we are at the tipping point for mass adoption amongst small and medium sized businesses. As a company which itself has adopted cloud computing, we find it worrying that the vast majority of companies aren’t taking basic measures to prepare themselves for such a significant shift in their business operations, such as creating a formal migration strategy, increasing security, ensuring they have a reliable and good quality internet connection or considering the impacts on their bandwidth and data demands.”