The events of 2020 didn’t prevent small- to mid-sized businesses (SMBs) from adopting the cloud. Impact Networking reported that SMBs’ overall cloud spending grew 6.3% between 2019 and 2020. Such growth is projected to lead more than a third (35%) of SMBs to annually spend between $600,000 and $1.2 million on public cloud services by the end of 2021, noted Statista.

Why Are SMBs Moving to the Cloud?

SMBs are turning to the cloud for numerous reasons. First, they’re using the cloud to lay the foundation for rapid growth and transformation. A majority (85%) of SMBs admitted to Deloitte how they believe the cloud empowers them to scale and grow faster. The logic is that the cloud helps to simplify and streamline operations, thus creating new opportunities. Indeed, 79% of respondents told Deloitte that they believe the cloud can unlock new markets and revenue streams. That explains why over two-thirds (69%) of survey participants revealed that they intend to increase their use of cloud-based technology in the years ahead.

Second, SMBs are leveraging the cloud to align with a changing business landscape. This became apparent to Deloitte when SMBs cited flexibility around mobility and remote working—not cost reduction—as the primary reason for adopting the cloud. As noted by Salesforce, cloud computing enables employees to be at work wherever they want. They don’t need to be using a specific device. If they have an Internet connection, they can make complete their tasks with their team members in real time using a cloud-based workflow and file-sharing apps. It’s thus no wonder that the amount of revenue from Desktop as a Service (DaaS) solutions, which allow for remote use of work applications, doubled from $600 million in 2019 to $1.2 million just a year later, Impact Networking discovered.

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