Cloud IT

Less than half of SME’s currently use the cloud primarily due to security concerns


More than half of SMEs do not use cloud-based computing where software, storage and other services are delivered over the internet using remote servers, according to recent research.

In total, 58% of small and medium sized businesses say that they do not use the cloud at all but 25% do plan to implement it in the next 12 months.

The reasons given for not using the cloud for business vary. Of those not using the technology;

  • 36% do not trust that it is secure enough
  • 29% believe transferring to the cloud would be too time intensive
  • 16% say that they cannot afford the cost

There is also a knowledge gap when it comes to cloud technology. Three quarters of SME senior business decision makers (73%) say they do not understand it well. One in ten (10%) admit they do not know what it is.

Smaller enterprises are least likely to be familiar with cloud technology and claim they don’t understand the technology well. However, in larger businesses 45% say that they do understand cloud technology better and firms of all sizes recognise the value of using the cloud for business.

In summary, SMEs appear to still be at the early stages of adopting cloud technology. Companies should consider how virtual servers could be used in their organisation and what kind of system might best fit their specific requirements. Furthermore, the cloud offers several benefits for smaller businesses, including;

  • increased storage space as companies no longer need to rely on hardcopies of documents
  • remote access to data with no need for manual back-ups
  • reduced costs due to less investment in local infrastructure

While Cloud technology has the potential to enhance operations, businesses should remain alert regarding IT security and sharing sensitive information.


Gary Green 

Senior Manager WA/SA at Australian Invoice Finance



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