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Study Shows Small Businesses Are Doubling Profits by Switching to Cloud Computing

By Rick Delgado
Business.com / Storage / Last Modified: February 22, 2017

A new study shows increased profit margins and lower security risks for SMBs that turn to the cloud. Is it time for you to switch?

Are you a cloud supporter or a cloud skeptic? That’s the divide many businesses are facing as cloud computing continues to gain in popularity.

While cloud supporters maintain that it can provide numerous benefits for companies, cloud skeptics say it presents too many issues surrounding security and data ownership.

These issues are of particular concern for small businesses since they usually operate with limited budgets and resources. But what do real world results say about the effectiveness of using the cloud?

Luckily, a new study has recently been released detailing how small businesses are using the cloud to great success. It shows that those who remain skeptical of the cloud might be missing out on some golden opportunities to expand their businesses and earn a lot more money.

Related Article: Why Your Business Needs Mobile Cloud Accounting

Could Cloud Computing Double Your Profits?

The study, which was conducted by Exact, a software company, and Pb7 Research, found some surprising things.

cloud computing

It discovered that small businesses that adopted the cloud actually doubled their profits, while at the same time seeing 25 percent additional revenue growth.

Considering some of the uncertainties companies have registered about cloud computing, to see such impressive results was unexpected, and that was just the overall average of small businesses that moved to the cloud. Some small companies actually saw even greater returns on investment.

Security Concern or Added Security Features?

The results of this study may end up encouraging those organizations that were skeptical about the cloud to begin with. Take the concerns many have expressed about cloud security. According to the study, security was actually the largest reason small businesses wanted to implement cloud software in the first place.

This can be seen as the response many cloud providers have offered in the face of so many security concerns. By boosting their security features and capabilities, providers have made the cloud a lot more appealing, particularly to small businesses. Other main reasons smaller companies have adopted the cloud include lower IT costs, low maintenance requirements and the chance for greater productivity.

Related Article: “Secure Cloud” is No Longer an Oxymoron

Lower IT Costs

The benefits small businesses stand to gain from moving to the cloud make it an attractive option for so many of them (more than half of small businesses in the U.S. use one type of cloud software, according to the study). These benefits contribute to the improvements seen on each company’s bottom line.

cloud software

For example, the lower maintenance requirements and overall IT costs can significantly help a small business struggling to keep afloat. Such a move to the cloud also doesn’t require much investment of resources, and purchasing new software is simply not needed.

Small businesses don’t have to worry about always having the latest and greatest programs on hand; that’s all in their provider’s realm now. With these concerns off the board, small businesses find it easier to increase their revenues and widen their profit margins.

Improved Productivity

Small businesses that embrace cloud computing will also find other benefits that contribute to greater success. Improved productivity is one such advantage.

Cloud platforms give employees the ability to access important information and software from nearly anywhere, provided they have a mobile device and an internet connection. This mobile accessibility makes getting work done a lot easier, giving businesses more flexibility and control over their programs.

Also worth noting is the improved collaboration the cloud facilitates between workers. The cloud basically allows employees to share and comment on data and projects, even if they are out of the office. Combine that with easier management options that help small businesses plan out their monthly budgets, and you get a valuable tool that helps companies cut down on costs and improve output by significant amounts.


Based off of the findings of this latest study, it’s clear that small businesses that use the cloud are not only figuring out the best ways to use it, they’re getting some highly valuable results from it.

While it’s understandable why cloud skepticism still exists, sometimes it can act like a blinder to the real benefits that are attainable from what is cloud computing. For those small businesses seeking to increase profits, minimize costs and find more success, the cloud is the clear solution to their problems.

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