By Tamara Pupic
In spite of offering increased security at a much lower cost, cloud technology is still perceived as insecure by SMEs, a new study states
A UK-based university researchers have found that SMEs are missing out on the benefits of cloud technology due to unfounded fears over data security.
A new academic study of the University of Greenwich, Dublin City University and the Witten/Herdecke, WHU - Otto Beisheim School of Management have stated that firms are reluctant to adopt cloud computing apart from only the most common uses such as email and file sharing.
Only one in four firms (25 percent) has adopted cloud technology for business systems while even fewer (19 percent) are making use of the cloud for financial accounting, the new study sponsored by the Chartered Institute of Management Accountants (CIMA) has shown.
Furthermore, less than a third (31 percent) use cloud computing for customer relationship management.
The primary reason for not using cloud technology is concern over data security, with 66 percent of businesses citing this as their main worry.
However, the research shows that in spite of public perception, cloud providers can typically offer increased security at a much lower cost than SMEs could otherwise afford.
According to the report, cloud technology also gives the benefits of more efficient business processes and both time and cost savings but low-adoption rates mean that businesses fail to gain these advantages.
Commenting on the results, Dr Martin Quinn, Management Accounting Lecturer at Dublin City University, said: “Despite an appreciation of the advantages of cloud technology in general, our research shows that firms are holding back in key business areas, particularly in their management accounting and finance systems.
“Data security concerns are valid but overstated and businesses need to better understand the security, cost-savings and flexibility they can gain from adopting cloud technology.”