Small and medium-sized businesses with on-premise computing services, such as voice, security and connectivity are branching away from on-site connected hardware in favor of options such as cloud computing. A recent report by the Guardian said that SMBs are turning to the cloud to address cost, complexity and space concerns.
The news source asserted that SMBs, in particular, are considered a vital market for technology vendors. Electronics manufacturer Huwaei estimated there are as many as 150 million SMBs worldwide, which spend more than $500 billion annually for IT solutions. However, the SMBs landscape is constantly changing, and many companies are replaced within only three years.
Cloud computing is expected to significantly impact SMBs moving forward and many businesses have already adopted the technology to satisfy their growth requirements, according to the report.
"Eventually, start-ups will develop into the next Googles and Facebooks, driving cloud computing growth along with their own," the Guardian said. "Early technology adopters are increasingly purchasing their IT infrastructure as a service; thereby sowing the seeds for our future in the cloud."
One of the key benefits of cloud computing is its cloud VoIP capabilities. The Guardian said the technology is more capable of providing companies with greater service flexibility and scalability compared to traditional phone systems. Businesses with hosted solutions in place also are not required to manage or maintain their networks, because vendors take care of these areas themselves.
"SMB purchases are limited to phones, a modest amount of dedicated routing equipment, and perhaps a switch to provide emergency backup to a traditional telephone network," the Guardian report said.
One of the knocks against cloud computing, however, is that the technology is less secure than on-premise solutions. The news provider asserted that efforts are being made industry-wide to invest in new solutions and skills to address these concerns. The cloud's multi-tenancy capabilities is also a benefit for SMBs looking to compete with larger companies who are also leveraging the cloud.
Cloud VoIP considered a money-saver
Other industry outlets have reported on the significance of cloud VoIP solutions compared to older systems. Dynamic Business recently reported that more communications companies are seeking cost-effective solutions that support their growth and flexibility requirements, and the cloud addresses these needs.