Silverfern IT media release 15 March 2012
Rapid uptake of cloud technology by small and medium businesses is reversing the traditional trend of the first new IT, says industry veteran Liong Eng.
“In the past, new technology has started out at a high price that only big companies could afford,” he explains. “Then as the installed base increased costs would start to come down and the technology would filter through to smaller businesses.
“With new cloud technology, small businesses are leading the charge, even getting ahead of their bigger competitors.
“In fact, the smaller the company the more likely they are to be totally cloud based: they see the advantages and they go for it with s speed that big companies with complex IT structure and procedures cannot.”
Mr Eng puts the switch down to the immediate cost savings cloud can deliver.
“Instead of being a new expense, Cloud can be an immediate cost saver, with major capital investment converted to more flexible fee for service and savings on internal support costs. So there is no financial barrier.”
Mr Eng believes however that the real driver is capability– and that SMEs are demonstrating they can be more flexible to adapt to the technology turn it into market advantage.
“A good example would be sub-contractors to the mining industry,” he says. “It’s a booming industry but it’s also up and down and much of it is project based, so contracts come and go.
“There are a lot of small companies competing, but each time they get a contract they have to gear up their IT to support it, that takes time and soaks up capital. At the end of the project they may be left with IT they have no use for.
“With cloud they can gear up in days and gear back down immediately the project ends.”
Cloud is enabling smaller companies to look and act – and compete – like much larger enterprises. Mr Eng predicts it’s a trend that will continue.
“In nearly twenty years of delivering IT support, this is probably the most exciting new technology we’ve offered our clients. We’re an SME too: we’ll be looking to grow with them.”