The main reasons smaller companies turn to the cloud

What’s the main reason small and mid-sized businesses are turning to cloud-based IT services? Hint: Cost-cutting isn’t the driving factor.

Cost is still a factor, but cloud computing’s ability to support growth is the main reason SMBs are turning to it, according to a recent survey by sales and marketing vendor MarketBridge.

Companies growing at a rate of at least 10% a year are twice as likely to use cloud services as other businesses, the survey found. Cloud computing allows businesses to scale their services up as their demands increase, without having to make huge investments for new hardware or software.

Of the 1,000 SMBs polled by MarketBridge, more than 70% plan to move major applications to the cloud within the next year. And 44% said they already have at least one business application in the cloud already.

Other motivators for cloud adoption include:

  1. mobility (cited as a key factor by 38% of respondents), and
  2. security (48% of respondents believe data security will be better in the cloud).

Is your company using or considering cloud services? If so, what are your key motivators? Let us know in the comments section below.