Published on the 21/08/2015 | Written by Newsdesk

While a noteworthy proportion of small and medium businesses in New Zealand aren’t yet using the cloud, we’re ahead of those across the ditch…

This emerged from a new study by the business advisory group, The Alternative Board, which found one third of small and medium businesses have never used cloud computing. Recent research from Australia’s Bureau of Statistics found that just 19 percent of businesses there with an internet connection use any form of cloud computing services.

Alternative Board CE Stephen James said there is an urgent need for Kiwi businesses to learn how cloud based computing systems can make doing business better and easier. “This study is a real eye opener. Respondents using the Cloud say it makes their workforce more productive and better able to service their customers’ needs [yet] one third of businesses are missing out.”

James believes a lack of knowledge about cloud computing could be holding many SMEs back.

According to the study, the majority of cloud-using businesses no longer have security fears. When they first moved to the cloud, 80 percent of owners which the Alternative Board described as having ‘a high grasp of cloud computing’ rated their security confidence at a 7 or higher. A further 63 percent of owners with ‘a lower grasp of cloud computing’ rated their confidence in security a 7 or higher.

Functionality was the greatest concern in migrating to the cloud (43 percent). Businesses were primarily concerned that by using the cloud, important data could be compromised, also by the inability to access data when internet signal is weak and with dependence on a third party to manage their company’s information technology needs.

Reasons for moving to the cloud include making workforces more mobile and productive (22 percent), quicker/easier access to data (21 percent) and servicing customers more effectively (11 percent).

Notably, said James, just 8 percent made the switch to save costs.

81 percent of respondents rated their satisfaction with using cloud based platforms a seven or higher.

The survey was taken by 300 business owners based in New Zealand, UK, Ireland, Canada and the US. The mean number of employees is 20. The most common industry sectors are Professional Services, Manufacturing and Construction.