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Small Businesses Are Not Quite Ready For Cloud Computing

Written by Ken Gaebler
Published: 7/1/2009

Most SMBs are still not comfortable with the new technology.

New technologies like cloud computing can help small business cut costs and reduce waste, but so far less than 10 percent of SMBs trust doing business in the cloud.

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That's according to a new survey from Egnyte which found that mistrust and security concerns were two of the biggest issues keeping entrepreneurs from adopting cloud computing solutions.

Jeff Boles, senior analyst for the Taneja Group, says the relative newness of cloud computing and some concerns about the technology not being ready for wide usage.

"There is no doubt that cloud-based computing services offer significant benefits to small businesses looking for ease and efficiency in storage and collaboration," he said. "However, the cloud is still in its early stages with some questions about reliability, latency and control - not to mention the fact that you always have to be tied to an internet connection."

The issue of internet use appears to be a big concern for small business owners as more than half (51 percent) said they would be "moderately impacted" by an internet outage of one hour and another one-fifth saying they would be "severely impacted."

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