According to the Small Business Administration, small businesses provide more than 50 percent of jobs across the country, making them truly the engine of our economy. Competing against large companies better able to capitalize on efficiencies of scale, has been difficult for many of these smaller enterprises.
However, the cloud is quickly becoming an equalizer, putting many of those economies of scale in the hands of more and more small business. The trend is growing… a recent study by Emergent predicts the current 37% usage rate will be close to 80% by 2020.
It’s not just for new economy businesses, either. A recent Forbes article outlines a case study of a St. Louis manufacturer of synthetic motor oils. In this case, the cloud wasn’t just creating efficiencies of scale, or easier access, it was also accelerating the company’s growth. According to the article, “Overall, in recent years, thanks in large part to its use of cloud-based services, the company grew from $85 to $130 million in sales (a 53% increase) with no additional staffing needs in customer service, order entry or accounting.”
Inc. Magazine concurs, noting, “While use of the cloud today is generally associated with the ability to reduce costs and improve efficiency, widespread adoption of this technology is projected to have a transformative effect on small businesses, but also on large companies and government organizations.”
Sinu has worked with small businesses for over 10 years to provide reliable, cost effective IT services to small business. Over the years, we have leveraged economies of scale through our technology partners – using cloud technologies even before anyone knew what the cloud was – to provide proven, enterprise-grade technologies and best practices usually only accessible to companies with large IT budgets. What we have seen is that by outsourcing their IT, our customers operate more efficiently because they can focus on their core business. However, while the cloud offers opportunities for cost savings and efficiencies today that may have not been available just a few years ago, it is important to assess your business’s IT needs as they relate to your organizational goals to help inform exactly what you should migrate and when.