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Cloud Spending is Ramping But You Knew That

A recent Forbes article quotes a study by IDG of over 1600 firms and the data show that 34% of IT budgets are allocated toward cloud solutions.  Here’s a key quote:

Even though there are higher short-term costs for implementing cloud initiatives, the majority of organization (63%) agree or strongly agree that there will be long term cost savings. Concerns about security dominate, however, as the main barrier to cloud, cited by 70%. Concerns about access to information follow at a distant 40%.

What we see in small business however is that this number is much smaller.  I encountered a 5-person firm recently, who do remote work, who are basic office and accounting users…and who just spent 5 figures on a server and set up.  Not to mention that the “management” of the server and desktops on a monthly basis is more that our total solution (with almost no upfront expense.)

The largest competitor in the small and medium sized company space for cloud service providers is doing nothing.  The cost of becoming “known” so that when companies are ready to switch they call you first is still substantial.

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