September 29, 2015

Does Cloud Computing affect Business Profitability?

According to an independent study of small and medium-sized enterprises across the UK, USA, France, Germany, the Netherlands and Belgium, the answer is: maybe.

Business Cloud News reports that the study, Exact 2014 SME Cloud Barometer, found a correlation between cloud adoption and revenue growth. Heavy users of cloud computing – in this case, companies using three or more cloud products – realised on average a 26 per cent revenue growth in 2015, with profits more than double that of their less cloud-committed competitors.

By comparison, companies with just one or two cloud computing systems found on average a 14 per cent revenue growth, while companies who had not adopted cloud at all showed on average a 10 per cent growth.

But while the study finds cloud adopters more likely to grow faster, it’s important not to regard the results as evidence that cloud technologies create productivity.

Industry analyst and principal researcher at Quocirca, Clive Longbottom, points out the complexity of circumstances that drive the decision to adopt or forego cloud adoption. Longbottom says, “Slow-thinking companies that are performing badly are unlikely to be at the leading edge of technology. Those that see technology as a core part of their business will tend to perform better.”

The world is seeing the many benefits that cloud computing can deliver to businesses. By facilitating scalability, automation and greater connectivity, SME’s are able to reduce their IT costs, plan for business continuity, and implement more flexible and efficient work practices in their day-to-day operations. Our own partners have reported substantial cost savings and monthly revenues following the adoption of our cloud backup solution.

So while we can’t conclude that cloud computing will create productivity in your company, it’s fair to say, based on our experience, that with a competitive business strategy, you’ll find cloud technology an asset that can be highly leveraged to drive growth and profit for your organisation.