Adoption of cloud computing in small and medium enterprises (SMEs) may be on the rise but many companies remain clueless about the technology.
After talking to 1,300 SMEs across the UK, PeoplePerHour.com discovered almost three quarters of the respondents didn't use cloud computing and 43 per cent of those didn't even know what the term meant.
Also a significant chunk of those who did understand what the technology was - 36 per cent - didn't see a need for incorporating it into their companies.
"UK SME owners have successfully incorporated a wide variety of technologies into their business models over the past few years," said Xenios Thrasyvoulou, chief executive and founder of PeoplePerHour.com. "Yet this survey highlights the confusion - and a possibly even a sense of scepticism - that many small businesses have over cloud computing."
"Small businesses are yet to be convinced of the advantages of accessing the amount of computer processing power and memory available online. Although the uptake is improving, the vast majority of small businesses are still voting with their wallets."
The common reason which many companies cite to avoid moving to the cloud is security but only 9 per cent of the respondents said this was the issue holding them back.
One in ten saw the technology as too expensive and 2 per cent claimed the cloud wasn't reliable enough.
Thrasyvoulou concluded developers in the software as a service (SaaS) market would have to work harder to win over the SMEs and ensure there were specific products targeted at the smaller business.
Last week, a report from IDC showed positive signs in the UK cloud market as it predicted the Government was set to ramp up its use of the technology.
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