http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 14.16Change: -0.03
R/$ = 10.52Change: -0.02
Au 1297.78 $/ozChange: -6.42
Pt 1476.50 $/ozChange: -5.00
 
 
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 Suppliers Directory Research Jobs Announcements Contact 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|Education|Africa|South Africa|Cloud Computing|Profitable Using Cloud Services|Technology Adoption|Transport|Arthur Goldstuck|Infrastructure|Information Technology
Africa|Education|Africa||Transport|Infrastructure|
africa-company|education-company|africa|south-africa|cloud-computing|profitable-using-cloud-services|technology-adoption|transport-industry-term|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
© Reuse this Comment Guidelines
 
 
 
 
 
 
 
 
Other Business Process Outsourcing News
YASAS JAYAKODY Project management drives organisations forward
In times of change, in order for the vision and strategy of a company to be realised, there needs to be proper project management, says Johnson Controls Africa Region project operations manager Yasas Jayakody. “Project management helps to drive organisations...
As e-commerce and digital payments gain traction worldwide, Mastercard, in conjunction with Standard Bank, on Tuesday launched a digital wallet mobile phone application, MasterPass, as a new way to transact safely and securely when shopping online. MasterPass would...
More
 
 
Latest News
President Jacob Zuma announced the composition on Wednesday of the ‘Energy Security Cabinet Sub-Committee’, which he said would oversee the development of South Africa’s future energy mix. Delivering his Budget Vote in the National Assembly, Zuma said the...
Cesa CEO Lefadi Makibinyane
Consulting Engineers South Africa (Cesa) on Wednesday stated that it welcomed government’s move to lead municipalities back to basics and to put in place institutional mechanisms to enable them to deliver core municipal services, as announced by Cooperative...
JSE-listed construction firm Group Five on Wednesday announced that it expected its fully diluted headline earnings per share (HEPS) for the year ended June 30 to be between 20% and 30% higher, at 382c to 414c, than the fully-diluted HEPS of 318c achieved during the...
More
 
 
Recent Research Reports
Real Economy Year Book 2014 (PDF Report)
This edition drills down into the performance and outlook for a variety of sectors, including automotive, construction, electricity, transport, steel, water, coal, gold, iron-ore and platinum.
Real Economy Insight: Automotive 2014 (PDF Report)
This four-page brief covers key developments in the automotive industry over the past 12 months, including an overview of South Africa’s automotive market, trade figures, production and the policies influencing the sector.
Real Economy Insight: Construction 2014 (PDF Report)
This five-page brief covers key developments in the construction industry over the past 12 months. It provides an overview of the sector and includes details of employment in the sector, infrastructure and municipal spending, as well as insight into companies’...
Real Economy Insight: Electricity 2014 (PDF Report)
This five-page brief covers key developments in the electricity industry over the past 12 months, including details of State-owned power utility Eskom’s generation activities, funding and tariffs, independent power producers and prospects for the sector.
Real Economy Insight: Road and Rail 2014 (PDF Report)
This six-page brief covers key developments in the road and rail industries over the past 12 months, including details of South Africa’s road and rail network and prospects for both sectors.
Real Economy Insight: Steel 2014 (PDF Report)
This four-page brief covers key developments in the steel industry over the past 12 months. It provides an overview of the global and South African steel and stainless steel markets, South Africa’s major steel producers and events that have shaped these markets.
 
 
 
 
 
This Week's Magazine
Local aerospace company Denel Aerostructures (DAe), part of the State-owned Denel Group, has won a fourth contract to manufacture parts for the Airbus A400M military air transport and air-to-air refuelling aircraft. The new contract, which was won in an international...
Bob Skinstad
Although CEO Mark McChlery and chief marketing officer Bob Skinstad likened themselves to children in a playground when taking on the task of “reengineering and repositioning” the Seartec brand, the “young, dynamic and enthusiastic guys” were like proud...
An increasing number of buyers, in both the new and used car markets, are opting for finance structures that lower their monthly repayments, says asset financing company WesBank. These include the use of large balloon payments (also known as residuals), as well as...
Tertiary education institutions can use search engine giant Google’s Chromebook to provide secure mobile end-point devices for students on which they can share documents, work collaboratively on documents and access education materials and applications being used...
Local ceiling and partition company Abbeycon has beaten global competition at the Saint-Gobain Gypsum International Trophy competition, which was held last month in Berlin, Germany.
 
 
 
 
 
 
 
 
 
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