Cloud computing to explode in SME market


Cloud computing to explode in SME market

Kathleen Hall

Cloud adoption could become more widespread in the small business sector than in larger organisations, said experts speaking at the 360IT event in London.

"The opportunity is much bigger in this sector," said Gregor Petri, adviser at CA Technologies. "Most SMEs don't want to hire people for IT support, so they can benefit massively from it. New business starting out will do almost everything in the cloud.

"There are so many businesses already using Google services. Cloud services are the only way in the medium term for these businesses to access enterprise-class robustness and service. It will be huge," he said.

Dave Allen, managing director at NetApp, believes cloud computing will erode the outsourcing market. "It's [already] large in mid-space where outsourcing is not necessarily economically viable. Outsourcing is not going to go away, but it will become more marginalised," he said.

But although uptake of cloud computing will continue, without standardisation companies won't benefit from true competition, added Allen.

But Errol Rhoden, director at OEM Solutions, said security would remain an issue unless service providers do more to gain customers' trust.

"The internet is the medium that enables cloud computing and I'm constantly surprised by the percentage of spam traffic - the biggest enemy in terms of malware and fraud. Service providers need to recognise the challenges they face when using that medium if they are going to win businesses around," he said.

More news from the IT360 event >>

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