Most small companies are yet to implement cloud computing technology into their business processes although the tide now appears to be turning according to a white paper published by Computing magazine in association with Star Technology Services.

Cloud computing is the industry name given to hosted network, application and storage services which relieve the end-user of his hardware purchase and management responsibilities. But despite the many recognised benefits of this technology, almost two-thirds of small businesses today have still neither implemented cloud computing nor actively considered doing so.

Recognition of the benefits

A poll of more than 200 decision-makers and strategists revealed that over half consider cloud computing to be attractive to SME businesses with 71 per cent saying it offers greater scalability than on-premise solutions. Respondents also seemed convinced of the role cloud technology could play in the event of a disaster with 76 per cent agreeing it would assist with issues of storage and disaster recovery.

One of the main arguments forwarded by proponents of cloud computing is the potential to achieve ‘more with less’ - principles that should certainly prick the ears of small businesses during times of recession. Supporters would argue that by leaving the hardware maintenance and the resolution of bugs and glitches to the hosted providers, IT managers and outsourced IT companies can spend more time on strategic planning to ensure businesses remain efficient and competitive.

Reasons for slow take-up

So why have SMEs been so slow to adopt these online solutions? The main obstacles to the widespread rollout of cloud computing remain the concerns surrounding uptime, data protection and security. Many consider a remote link to be more susceptible to failure or compromise than an on-site system whilst, for other businesses, it is an underlying issue of control. One IT manager who participated in the survey commented: “If I can’t lock it, back it up and hold it in my hand it’s not secure”.

Encouraging signs

The white paper highlights a paradoxical link between some of the most recognised advantages of cloud computing and the concerns of its detractors. In the survey, 75 per cent of respondents cited ‘data protection and security’ as a key concern, a figure which almost exactly matches the 76 percent who named ‘storage and disaster recovery’ as one of its main advantages.

The authors comment that: “far from being an indictment of cloud security, these responses offer encouraging signs: any journey into the cloud means asking tough, searching questions and carrying out due diligence. Almost all security surveys in the 21st century have identified human error rather than malicious intent as the greatest threat to data security - and the threat tends to be within the enterprise, not lurking outside the firewall.”

So will the ability to recover quickly from natural disasters, acts of terrorism and other unplanned downtime ultimately override our obsession with battening down the hatches? Only time will tell - but many industry players are certain they see more cloud on the horizon.

Download white paper: Can Cloud Computing give you the freedom to be more strategic?

Published by Computing magazine in association with Star Technology Services (December 2009)