Case Study on It

SMEs in UK slower to adopt cloud computing than Europe's firms
Small businesses in Britain are adopting internet-based software, storage and communication services more slowly than European peers, a survey of companies across Europe suggests.

SMEs in UK slower to adopt cloud computing than Europe's firms 
By Richard Tyler and James Hurley
7:00AM BST 26 Apr 2011
It comes as IT giants Microsoft and Tata Consultancy Services have launched on-demand, internet-based business software platforms for small and medium-sized enterprises and IBM claimed last week that its new product range would fuel the adoption of so-called "cloud" based services from the current "experimentation" phase to "full scale deployment".
However, the UK appears to be lagging behind the rest of Europe with the survey of 1,600 companies by VMware finding that on average 60pc of SMEs had adopted some internet-based IT compared to only 48pc in the UK.
The most common service used by SMEs was storing data remotely rather than on the office server or PC hard drives. Email and office software, like word processing and spreadsheets, were the most common software applications to be accessed from the cloud rather than installed directly.
Chris Jagusz, retail managing director at IT specialist Daisy Group, said: "The earliest adopters are technically oriented start-ups with no installed base of systems, people who are comfortable with putting their applications and data in the crowd.
"After that, it tends to be almost the opposite – services firms who don't want the hassle of managing the technology and are happy for a cloud firm to do it for them."
Industry consultants IDC estimate $16bn (£9.8bn) was spent globally by companies on cloud-related technology in 2009 and forecasts this to increase to $55bn by 2014. Spending by SMEs represents almost half the total.
Tata is among a growing number of large IT companies creating on-demand software for smaller businesses. Google...