Cloud ERP – This is something we all knew, but now we have the facts to prove it: A new survey by Exact and Pb7 Research indicates that small and medium businesses using cloud-based software to support their basic business operations, have more revenues than the rest.
In particular, the survey revealed that 51% of small businesses in the USA is using some sort of cloud software, while 29% is using three or more packages. Actually, thegrowth rate of the businesses that participated in the survey and have “embraced” cloud-computing is 25% higher, and their profits have doubled. Another interesting finding is that, even though the transition to an entirely new platform is initially stressful, the primary reason that small businesses decide to take this step is that cloud providers guarantee backup, security and hosting for their data.
Another major factor for choosing cloud-based solutions is obviously the lower IT cost, reduced maintenance expenses and access to business applications through mobile devices, at any time and from any place. Furthermore, those businesses that decided to use cloud software stated that some of the most important benefits they enjoyed were ease of use, the ability to search for and share information, and increased productivity. The small construction companies that participated in the survey presented a 19% growth in 2014, which is expected to reach 21% in 2015.
So, the facts of this survey indicate that low IT cost, security and productivity and effectiveness improvement for the end-users are the three primary reasons driving small businesses to choose online business software solutions. Nevertheless, only 26% of the businesses that have chosen a range of cloud offerings and appear to be more profitable desires to possess the latest technology, including cloud-based software and other innovative solutions. This is not something to ignore, since it shows that there is always some level of resistance that forward-looking business executives should try to mitigate.
Even small and medium businesses that have increased their profits thanks to the cloud technology should not feel re-assured. According to the survey by Exact and Pb7 Research, if they want to remain competitive, businesses of this size must focus on those methods that will help them modernize their IT systems. In this way, they will find themselves in an even more powerful position that will enable them to enjoy the “fruits” of financial recovery.
Cloud-based business software offers small businesses automation features that, up until recently, were exclusively available to the big players. Furthermore, cloud technology allows users to have a comprehensive view of up-to-date business information, such as stock rates, overall status, materials and products pricing (especially in constructions), inventory status for more accurate management and understanding of the current needs, and finally timely order deliveries.
After all, thanks to the cloud, you can integrate and automate all basic business systems, such as CRM, finances and production.