The Benefits of Cloud for Business: start-ups, SMEs, enterprise & profitabilty

The Benefits of Cloud for Business: start-ups, SMEs, enterprise & profitabilty

A study by academics at the University of Manchester, sponsored by Rackspace, has proved that in a large survey of businesses, cloud computing has provided significant benefits for businesses of all shapes and sizes.

Findings – Profitability for all

Perhaps the most important finding is that of greater profitability, particularly for SMEs, where a quarter of the 1,300 respondents reported between 25% and 75% increase in profits directly related to their use of cloud computing. This is also true for larger companies too too, as three quarters of enterprises said that cloud computing has reduced their IT costs, which allowed them to reinvest that money back into their core business.

These benefits go beyond just pure cost savings on software licenses, as it means that staff can work from anywhere, leading to costs savings on offices; 71% of companies said that was true for them.

Encouraging Entrepreneurs

Aside from existing businesses, cloud computing enables start-ups to launch, and increase their initial growth, by not having to spend initial cashflow on expensive IT infrastructure.

The scalability of cloud computing means that entrepreneurs can think big, allowing them to compete with large companies. Cloud computing presents an opportunity for start-ups, existing SMEs and large enterprises, as they all become more competitive, spending less on infrastructure whilst getting more functionality and scale for their money.

You can read the full report here (PDF).

Key points

  • 74% of large enterprises and 64% of SMEs agree that cloud computing has reduced their IT costs.
  • 60% of companies have more time to focus on strategy and innovation.
  • 70% of large enterprises and 59% of SMEs surveyed have been able to reinvest more money back into their business.
  •  20% of SMEs would not have been able to afford on-premise IT resources required to set up the business.
  •  Cloud computing has allowed 90% of large enterprises and 84% of SMEs to increase their investment back into their business by up to 50%.