What dangers do businesses face by not using the cloud?

Within modern business, the adoption of cloud technology has transitioned from being a choice to a necessity

What dangers do businesses face by not using the cloud

Currently, 94% of businesses in the UK have embraced the cloud, contributing to an estimated market worth of £15 million. However, a substantial 58% of small and medium-sized enterprises (SMEs) in the UK are yet to implement cloud technology, and shockingly, a third of them are not utilising it at all. This reluctance stems from various concerns, including security, time constraints, budget limitations, and a notable knowledge gap among smaller enterprises regarding the functionality of the cloud. As 25% of SMEs plan to integrate the cloud in the next 12 months, it is imperative to address these concerns and illuminate the risks businesses face by not harnessing the power of cloud capabilities.

Understanding the hesitancy for the cloud amongst SMEs

Small businesses exhibit hesitancy towards adopting cloud technology for a myriad of reasons. Security concerns are at the top of the list, with over a third of non-users citing a lack of trust in the cloud’s security, fearing data breaches and unauthorized access. Additionally, 29% find the transition to the cloud too time-intensive and 16% believe they cannot afford the initial investment. The lack of knowledge and expertise also hampers migration, as businesses struggle to select the right cloud provider and services. Despite the initial migration costs, it is crucial to recognize the long-term cost savings that cloud computing can offer.

The risks of avoiding cloud adoption for SMEs

As SMEs hesitate to integrate cloud technology into their operations, they expose themselves to greater risks that can significantly impact their workflow and overall business resilience.

Your business becomes limited in scaling in an evolving market

Operating outside the cloud hampers resource scaling, risking missed opportunities to acquire new customers and recover from financial losses. Cloud technology enables seamless resource scaling, allowing organisations to adjust resources based on consumer demand. The cloud enables dynamic scaling which enhances flexibility, allowing businesses to adapt promptly to market changes and efficiently seize opportunities as soon as possible. 

Your employees are less restricted in their work

Businesses were traditionally by specific locations and equipment, hindering their mobility and ability to expand their outreach. With the cloud, organisations can now liberate themselves from physical constraints through this technology. Remote working has become a reality, fostering a dynamic and responsive workforce capable of engaging with customers and exploring opportunities from anywhere. The cloud empowers businesses to thrive in a globally connected world.

Your data becomes more susceptible to hacking

One of the most prevalent concerns amongst SMEs is surrounding their data becoming more vulnerable and prone to hacking due to adopting cloud computing. Contrary to belief, organisations’ data is more susceptible to phishing attacks and malware infections if it remains purely on-premises. The cloud enhances security measures through encryption, regular security updates, and proactive monitoring. Adopting the cloud provides access to skilled security professionals, offering robust defence mechanisms against cyber threats.

You are more likely to experience IT system disruptions

On-site IT systems are prone to interruptions, including power outages and hardware/software issues. Additionally, storing sensitive data on-premises may need to comply with a variety of regulations such as GDPR which can be complex and costly to comply with. Cloud technology mitigates these issues by allowing users to access data from any location, even during power outages on-premises. The cloud’s seamless service includes vigorous backups to minimise downtime during system upgrades, a common occurrence in traditional IT setups.

Your business is more dependent on outsourcing IT support 

On-site IT infrastructure limits businesses to a small group of employees or technicians. Cloud adoption provides support from cloud service providers, contributing to a resilient and well-supported IT infrastructure. This approach offers a cost-effective alternative to outsourcing IT support independently and addresses the potential limitations of in-house IT support availability during crises.

The benefits of cloud computing for SMEs

SMEs stand to gain significantly from cloud adoption. Cloud computing allows SMEs to store and access data remotely from anywhere with an internet connection; eliminates the need for expensive hardware purchases, software licensing, and on-premises maintenance; facilitates seamless collaboration and communication among team members regardless of their location; and enables SMEs to quickly scale their IT resources up or down based on fluctuating business needs. Notably, 29% of SMEs consider adopting the technology for flexible working, 28% to save space, and 25% to improve organisation and documentation—highlighting the growing recognition of the cloud’s potential benefits.

Jake Michael
Jake Michael

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