Fortune Business Insights recently published a report valuing the global computing market at $676.29 billion. The market could reach $781.27 billion in 2025 and $2.291 trillion by 2032. Considering these statistics, it’s logical to conclude that cloud technology is here to stay.
Businesses – both small and large – are turning to it to improve operations. In fact, those who don’t take this direction may soon be out of business. It is no wonder that O’Reilly reports that over 90% of organizations use the cloud. Remember, one way to maintain competitiveness is by aligning with shifting trends like adopting this transformative technology.
However, as it becomes more popular, you want to be sure you’re collaborating with the right cloud service provider to avoid falling into the arms of malicious actors. For small businesses, taking this approach can really be handy. Here are a few reasons why:
Cutting down on costs
Agreeably, IT infrastructure is quite expensive, especially for small businesses. Think of the heavy investments in hardware and software. Such investments can be an unbearable burden for businesses whose annual yields never exceed $10 million. So, instead of trying to measure up to giant companies that have the resources, small businesses opt to pay for cloud subscriptions.
And you may be surprised to learn that, according to Tata Tele Business Service, about half of these organizations have expanded their businesses by incorporating these solutions. With the cloud, small-scale organizations no longer need to worry about constructing data centres or acquiring extensive hardware to function.
The pay-as-you-go model ensures you only pay for the computing resources you use, avoiding the costs of idle or underutilized hardware. You also get to cut down on the costs of maintaining in-house staff, as cloud providers handle maintenance and updates of the infrastructure.
According to SEACOM, this technology can help SMEs reduce IT expenses by a staggering 36%. Another exciting part of managed cloud services is that scaling up or down is easy, depending on your business needs. This means no more over-provisioning or under-utilization of resources.
Online security is a growing concern
It may be surprising, but do you know that in India alone, 40% of SMEs have adopted the cloud because of improved security? With cyberattacks increasing, you want to ensure you are as safe as possible. Ignoring this aspect could lead to significant losses and, ultimately, business closure.
Putting that into perspective, BusinessDasher cites data breaches as the reason 60% of small businesses close down within six months. Many customers are also unwilling to return to breached organizations, explaining why anything that promises improved security is always welcome.
See how the cloud improves security:
- Data loss prevention (DLP) systems to monitor and control data movement
- Automated data backups and recovery solutions, ensuring business continuity
- AI-powered security measures to help in real-time threat detection
- Automated updates and patching to ensure vulnerabilities are addressed promptly without manual intervention
But these features do not mean that you shouldn’t be sensitive. The same way tech advances help improve life experiences is how they help cybercriminals become more sophisticated. And looking at statistics, TechMagic recently reported that over 80% of data breaches involved cloud data. More businesses on the cloud means more data available, making it a prime target for malicious individuals.
Improved collaboration and operational efficiency
About five decades ago, thinking that people could ever meet remotely could have seemed a far-fetched dream. All the necessary parties were required to attend the meetings physically. However, fast-forward to 2025, and you have an entirely new culture. People can log in from their respective areas and participate without feeling left out.
And in case you miss out on anything, you can always review the recorded sessions. Some platforms even go the extra mile of providing key discussion points and action items, resulting in reduced communication inefficiencies. At a time when 86% of employees and executives consider communication inefficiencies the main cause of workplace failure, improving collaboration has never been more important.
And what better way to do that than to adopt cloud-based platforms like Microsoft Teams? According to McKinsey, businesses with effective communication structures improve productivity by up to 25%. Given the competitiveness of today’s business sector, it makes sense for many SMEs to implement cloud solutions to take advantage of such statistics.
Ready to shift to cloud technology?
Based on these points, this technology is undoubtedly beneficial. But before adopting it, you must understand your business needs and define what you are trying to solve. Is it cost reduction? Is it improving scalability? Or is it overall business performance? Also, define your short-term and long-term goals to ensure alignment with your overall business strategy.
Assessing your current IT infrastructure may also help determine the best cloud deployment model and migration strategy. Not everything will move to the cloud; you may want to remain with some on-premises.
With the business world becoming super competitive, organizations – both large and small – are working hard to maintain relevance. After all, no customer will sympathize with your poor experiences just because you run a small-scale business. This explains why even SMEs are not left out in the cloud technology trend. Regardless of size, every company wants to reduce costs and improve operational efficiency and security, providing reasonable grounds for this tech’s further spread.