http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 17.88Change: -0.10
R/$ = 15.88Change: -0.04
Au 1237.82 $/ozChange: 0.47
Pt 955.50 $/ozChange: -4.00
 
 
Note: Search is limited to the most recent 250 articles. Set date range to access earlier articles.
Where? With... When?








Start
 
End
 
 
And must exclude these words...
Close Main Search
Close Main Login
My Profile News Alerts Newsletters Logout Close Main Profile
 
Agriculture   Automotive   Chemicals   Competition Policy   Construction   Defence   Economy   Electricity   Energy   Environment   ICT   Metals   Mining   Science and Technology   Services   Trade   Transport & Logistics   Water  
What's On Press Office Tenders Suppliers Directory Research Jobs Announcements Letters About Us
 
 
 
RSS Feed
Article   Comments   Other News   Research   Magazine  
 
 
Jun 08, 2012

Only 9% of SMEs were using cloud computing at end of 2011

Back
Africa|Cutting|Education|Health|Technology|Tourism|transport|Africa|South Africa|Cloud Computing|Profitable Using Cloud Services|Services|Technology Adoption|Arthur Goldstuck|Infrastructure|Information Technology
Africa|Cutting|Education|Health|Technology|Tourism|transport|Africa||Services||Infrastructure|
africa-company|cutting|education-company|health|technology|tourism|transport|africa|south-africa|cloud-computing|profitable-using-cloud-services|services|technology-adoption|arthur-goldstuck|infrastructure|information-technology
© Reuse this

Small and medium-sized enterprises (SMEs) have yet to embrace cloud computing, despite promises of reduced costs and improved efficiencies, the yearly SME survey has found.

Only 9% of SMEs made use of the cloud at the end of 2011, despite a correlation between profitability and cloud adop- tion, with 11% of SMEs that are strongly profitable using cloud services. Conversely, of those breaking even or making a loss, only 7.5% use the cloud, says SME Survey principal researcher Arthur Goldstuck.

However, this is not surprising as the SME sector tends to follow in the wake of technology adoption by corporations, he explains.

“Around half of all corporates in South Africa are still not making use of the cloud, so it is no shock to see how few SMEs are doing the same,” he adds.

“Although the number of corporates expected to be using the cloud this year will reach 52%, the number of SMEs doing the same will only reach 18%. While this does represent a doubling of the proportion of SMEs using the cloud this year, it will still mean that by the end of 2012 less than one in five SMEs will be using the cloud,” says Goldstuck.

“This means that SMEs are not bene- fiting from the multiple, obvious benefits they stand to gain from cloud adoption.”

Broken down by sector, communications (13%), education and financial services (14%) and information technology (IT) and telecommunications (16%) are all well above the overall rate of adoption. However, tourism, transport and health- care (4% each) and retail (5%) are sectors that are far below the mean.

Some of these sectors are potentially the biggest beneficiaries of managing their processes through the cloud, Goldstuck says.

“They could benefit from reducing the operational and capital costs of IT, and from obtaining richer functionality and better business flexibility.”

Further, the age of a business plays a role in the likelihood of adoption, with only 5% of new businesses indicating that they use the cloud. Among all other age categories of SMEs, more than 8% have taken to the cloud.

“This shows that new businesses are more cautious about adopting cloud ser- vices. This is ironic, since start-ups have the most to gain from the cloud as, for example, they would not need to invest heavily in infrastructure,” says Goldstuck.

“There is certainly evidence that cloud computing offers more benefits than drawbacks to SMEs, yet a lack of under- standing of these benefits means uptake continues to be slow. “Despite this, there is a clear edge for those who do make use of it; after all, cloud computing is an enormous cost saver to any business, and cutting costs is a key element of profitability,” concludes Goldstuck.

Edited by: Martin Zhuwakinyu
Creamer Media Senior Deputy Editor
© Reuse this

To subscribe email subscriptions@creamermedia.co.za or click here
To advertise email advertising@creamermedia.co.za or click here
 
Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
Other Information Technology News
Government says it hasn’t yet selected the “lead agent” for its R740-million municipal broadband project, despite indications that Telkom could win the deal. At the 2015 State of the Nation Address (Sona), President Jacob Zuma said government had “decided to...
Information technology (IT) equipment and infrastructure multinational Dell is providing open infrastructure systems for clients so that they can use any systems, including innovative new systems, that suit their business needs, says Dell Europe, Middle East and...
The local solution centre of US enterprise asset life-cycle and information management company Archibus aims to help government departments manage their asset registers of movable and immovable assets with one system. The firm has more than 33 years of experience,...
More
 
 
Latest News
The Competition Tribunal on Friday gave a conditional go-ahead for mobile operators Cell C, MTN and Vodacom to buy out their respective subscriber bases, as South Africa’s last independent service provider Altech Autopage calls it a day. The Allied Electronics...
The drought in Southern Africa could become one of the worst on record should the current below-normal rainfall continue, the United Nations (UN) World Food Programme said this week. The El Niño conditions presently being experienced in the region had resulted in a...
Kelibone Masiyane has been appointed the new MD of PPC Zimbabwe, succeeding Njombo Lekula, who had recently been redeployed as MD of PPC’s international operations. Masiyane would be supported by new PPC commercial director Iain Sheasby and new PPC GM of finance...
More
 
 
Recent Research Reports
Construction 2016: A review of South Africa's construction industry (PDF Report)
Creamer Media’s Construction 2016 Report examines South Africa’s construction industry over the past 12 months. The report provides insight into the business environment; key participants; local demand; geographic diversification; corporate activity; black economic...
Energy Roundup – February 2016 (PDF Report)
The February 2016 roundup covers activities across South Africa for December 2015 and January 2016 and includes details of a Government Gazette notice that confirms Cabinet’s decision to move ahead with the 9 600 MW nuclear procurement programme; State-owned power...
Energy Roundup - December 2015 (PDF Report)
The December 2015 roundup includes details of State-owned utility Eskom’s application to claw back R22.8-billion; South Africa’s ranking as an investment destination for renewable energy; and a nuclear expert’s thoughts on reactor designs for South Africa’s nuclear...
Water 2015: A review of South Africa's water sector (PDF Report)
Creamer Media’s Water 2015 Report considers the aforementioned issues, not only in the South African context but also in the African and global context in terms of supply and demand, water stress and insecurity, and access to water and sanitation, besides others.
Input Sector Review: Pumps 2015 (PDF Report)
Creamer Media’s 2015 Input Sector Review on Pumps provides an overview of South Africa’s pumps industry with particular focus on pump manufacture and supply, aftermarket services, marketing strategies, local and export demand, imports, sector support, investment...
Liquid Fuels 2015: A review of South Africa's liquid fuels sector (PDF Report)
Creamer Media’s Liquid Fuels 2015 Report examines these issues in the context of South Africa’s business environment; oil and gas exploration; fuel pricing; the development of the country’s biofuels industry; the logistics of transporting liquid fuels; and...
 
 
 
 
 
This Week's Magazine
WIDENING FLEXIBILITY The trailers have a 3-m-wide (2-file) and 4.3-m-wide (2-file) configuration
Lifting, transporting, installing and ballasting solutions provider Ale has expanded its global fleet of trailers and invested in the latest range of widening trailers that can be mechanically widened from 3 m to the desired width for any project. Ale ordered 48 axle...
The market for the BMW 7 Series in South Africa differs quite significantly from the rest of the world. China, the US and the Middle East almost exclusively buy the long-wheel-base version, using the German manufacturer’s luxury high-end sedan as a chaffeur-driven...
January new-vehicle sales fell by 6.9%, to 48 615 units, compared with the same month last year. Statistics released by the Department of Trade and Industry show that the domestic new passenger-car market declined by 6.1%, to 34 936 units, compared with 12 months ago.
Information technology (IT) equipment and infrastructure multinational Dell is providing open infrastructure systems for clients so that they can use any systems, including innovative new systems, that suit their business needs, says Dell Europe, Middle East and...
South Africa’s State-owned defence industrial group, Denel, has set up another international partnership, based in Hong Kong. This new subsidiary is Denel Asia and it is a joint venture (JV) with South African private sector company VR Laser.
 
 
 
 
 
 
 
 
 
Alert Close
Embed Code Close
content
Research Reports Close
Research Reports are a product of the
Research Channel Africa. Reports can be bought individually or you can gain full access to all reports as part of a Research Channel Africa subscription.
Find Out More Buy Report
 
 
Close
Engineering News
Completely Re-Engineered
Experience it now. Click here
*website to launch in a few weeks
Subscribe Now for $149 Close
Subscribe Now for $149