Helping SMEs into the cloud

There's been a spate of research released over the last few months (some independent and some vendor-sponsored) showing increased enthusiasm amongst SMEs (SMBs) for cloud services.  Whilst I'm not disputing that there is more interest in web services within many small companies, I think there is still a way to go before there is a widespread move away from server/desktop apps to the cloud.  I wrote a bit about this in earlier post but since then I've spoken to more companies and come to the conclusion there are some basic issues that need addressing before cloud computing hits the mainstream.  My diagram summarises my current thinking.

KNOWLEDGE

Benefits of cloud - while early tech-savvy early adopters might be aware of the benefits to productivity and collaboration of web-based services, the majority of SMEs are less interested and need focused and relevant demonstrations of these advantages.

Product offerings - new services are being launched on an almost daily basis and this is causing confusion.  SMEs need unbiased sources of information about what is available in the marketplace which explains product offerings in non-technical language.  Transparent and flexible pricing schemes are also needed - too many vendors are still hiding their prices or offering schemes that do not suit their target market.

Wordflow integration - building on the last point, there need to be clear demonstrations of how these new services fit into the workflows of SMEs so that they are not seen as just one more bit of technology that needs to be understood and assimilated.  Case studies/video testimonials of current customers are useful in overcoming this hurdle.

TRUST

Reliable service - this is a recurring theme and a concern amongst many of the SMEs I have spoken to. They generally trust the PCs and servers in their offices and the software that runs on them.  They need to be confident that the web services they may entrust their information to will be as reliable.  SLAs obviously have a place here.

Secure data - following from the last point, many SMEs are not willing to trust their customer data to third parties in the cloud.  For many companies this data is their lifeblood and they need to be 100% confident that it will be looked after, not be hacked and not be shared.  This is probably one of the most difficult barriers to overcome - a report in the media of data being lost/hacked/compromised and many SMEs will stick with their internal systems.

Not locked in - many cloud services offer the opportunity to export data out of their systems and that is a good thing.  However, allowing a compressed XML download of data may not be enough in itself.  For companies that can make sense of a large XML file and extract meaningful data from it it may not be a problem but most small companies would not know where to begin.  This is an opportunity for someone to create an easy to use tool for manipulating XML data via a simple graphical interface.

Comments

[Elizabeth Kantor]

There will always be security issues in our evolving business environment. The true question is how will cloud computing affect SME's (SMB's)? Having access to information from where ever you are could be the key to increased competitiveness and productivity. Check out the #1 ERP site for SME's www.myerp.com