Three Main Reasons Why SMEs are Shifting to Cloud Computing

Some IT experts believe that by 2020, 83% of enterprise workloads will have moved to the cloud. Cloud computing is an exciting take on solving the computing problems that many organizations face. Basically, hardware and software tools are hosted online, where users can access and use them at a fee (usually subscription-based). Entrepreneurs and small business owners have realized the potential of cloud computing in a data-driven market and are taking advantage of its many benefits, which include:

Managed Services

Start-ups and SMEs usually struggle with meting their IT demands due to under-staffed or inadequately skilled IT personnel. Cloud Computing solves this problem by providing cloud users with cloud-based managed IT services. With a managed IT service, organizations don’t have to worry about maintenance, upkeep, and upgrading of their IT systems.

The main advantage of using a managed service instead of an in-house IT department is the low cost of operation. An outsourcing service provider works on a contract basis, so no time and money is spent on training and onboarding.


There’s is an ever-increasing need to secure valuable business data considering the rising cases of cybercrimes and data breaches. Cloud storage provides a robust, secure platform for storing data and controlling its access. Many businesses see cloud storage is a convenient, inexpensive, and vastly reliable way of storing information compared to on-prem servers and public networks.

Depending on the provider and service package, clouds can offer several levels of data security, including multi-factor authentication, data encryption, and data encapsulation. Data availability and integrity are also essential elements of data security. To that effect, cloud storage also offers backup and disaster recovery functions to restore lost data and ensure data availability at all times.

Affordable Access to Cutting-edge Tech

Cloud services are broadly categorized into Platform as a Service (PaaS), Software as a Service (SaaS), and Infrastructure as a Service (IaaS). This means that you can use the cloud to host ERPs, access IT infrastructure, or use hosted software applications. Computing resources, particularly business tools such as management software and data analytics applications, don’t come cheap. However, with the SaaS software model, businesses can access and use the latest and most powerful software tools easily and affordably.

Cloud computing levels the playing field for both large corporations and small businesses in terms of access to powerful, cutting-edge technologies. The cloud allows small organizations to use tech that they would otherwise not afford to purchase and maintain. In a generalized view, this could be the primary reason why SMEs prefer cloud services to in-house IT systems.

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