Search Commspace
 
Connect
Related Content
Microsoft - News

Microsoft Study Reveals Small and Midsize Businesses Using Hosted Services Have Better Financial Performance

Posted By Microsoft , 03 February 2010 | 0 Comments | (0)
Tags: Microsoft Communications Sector Microsoft Communications Sector Hosted Services Cloud Computing smb small and medium businesses

Research suggests correlation between IT usage and business growth

REDMOND, Washington — 3 Feb 2010 — Microsoft Corp today released its global SMB IT and Hosted IT Index 2010 (see note 1) which investigates how small and midsize businesses (SMBs) across multiple segments fared during the recession and how they use technology. The research finds that businesses that value IT as an enabler for better business productivity and effectiveness and those that use hosted services performed better fiscally than those that do not.

IT Critical to Revenue Growth
Despite the global recession, more SMBs surveyed in 2010 reported an increase in revenue than in 2008. Those that reported growth view IT as critical to their business success.

  • In the past 12 months, 52 percent of SMBs reported an increase in revenue, up from 39 percent in 2008 (see note 2),
  • Increasing 20 points since 2008, 55 percent of SMBs view IT as critical to their business,
  • Of the SMBs that view IT as critical, 60 percent saw revenues grow over the past 12 months. In contrast, among SMBs that stated IT is not important, less than 29 percent saw revenue increase (see note 3).


SMBs Moving Towards Cloud Computing
The 2010 index indicates SMBs are beginning to see the benefits of cloud computing; more than 40 percent of the respondents that use hosted or cloud technology reported revenue rises of 30 percent or more compared with 90 percent of respondents not using hosted technology that saw decreases in revenue. The advantages of hosted or cloud technology are viewed as reduced cost and IT management and maintenance, as well as increased business value, productivity and competitiveness.

  • Awareness of hosted services is increasing with 65 percent of SMBs using hosted software to some extent, while 73 percent of the remainder have considered it, compared with only 44 percent in the 2008 Index.
  • SMBs are beginning to understand the value of “renting” IT as a service — 36 percent said a pay-as-you-go model would be attractive.


Cloud computing has become a watchword for the IT industry as software and services such as e-mail, websites and e-commerce are increasingly available in an on-premises, off-premises or hybrid model depending on business need.

Over the last five years, we have seen nearly 40 percent growth in usage of hosted services,” said Michael Korbacher, director of EMEA Software plus Services in the Communications Sector at Microsoft. “Using pay-as-you-go cloud technologies, small and midsize businesses can now afford and easily have access to enterprise-class, secure services across any platform.”

Correlating Business Performance With Technology Usage
The findings from the research were concluded by analyst firm Freeform Dynamics Ltd, which independently assessed the SMB IT and Hosted IT Index 2010 to ascertain to what degree IT adoption is driving revenue growth specifically within the SMB community.

The SMB IT and Hosted IT Index 2010 commissioned by Microsoft researched 3,193 SMBs in a cross section of private industries in 15 countries. Overall, the findings show greater awareness of the benefits of IT among SMBs and a high reliance on IT across all industries and geographies. The findings indicate a clear path towards better financial performance than for those not currently taking advantage of IT advances such as hosted services.

Our assessment of the report tells us that an increased focus on IT correlates with good performance in all of the size categories surveyed,” said Dale Vile, research director of Freeform Dynamics. “This whole picture corroborates the notion that technology and hosted services can provide tangible business advantage, even for smaller companies, and it’s not surprising to see that investment in IT and hosting goes hand in hand with good financial performance.”
 
Notes to editors
1 - 3,193 SMBs surveyed in France, Germany, Netherlands, Norway, Poland, South Africa, Spain, UK, USA, Australia, China, India, Japan, South Korea and Singapore in a cross-section of different industries. Microsoft Small Business Technology Index 2010 available on request.
2 - Microsoft Small Business Technology Index 2008.

Advertisement
Available on request.
3 - Table showing correlation between the role of IT within businesses and revenue change.

Role of IT within business and revenue change

It’s critical to our business; we cannot work without it

  • 14.38 percent - Revenue up more than 30 percent
  • 34.01 percent - Revenue up 10 to 30 percent
  • 11:56 percent - Revenue up less than 10 percent
  • 25.49 percent - No change in revenue
  • 14.55 percent - Decrease in revenue


It’s very important for the majority of our activities

  • 8.86 percent - Revenue up more than 30 percent
  • 28.32 percent - Revenue up 10 to 30 percent
  • 8.65 percent - Revenue up less than 10 percent
  • 40.16 percent - No change in revenue
  • 14.01 percent - Decrease in revenue


It’s important, but not essential to the running of the business

  • 8.21 percent - Revenue up more than 30 percent
  • 18.48 percent - Revenue up 10 to 30 percent
  • 8.21 percent - Revenue up less than 10 percent
  • 46.33 percent - No change in revenue
  • 18.77 percent - Decrease in revenue


It complements our business but is by no means essential

  • 7.41 percent - Revenue up more than 30 percent
  • 13.89 percent - Revenue up 10 to 30 percent
  • 7.41 percent - Revenue up less than 10 percent
  • 42.59 percent - No change in revenue
  • 28.70 percent - Decrease in revenue


The IT services outlined in the research are as follows.
 
E-mail

  • 67 percent SMBs have on site
  • 29 percentSMBs have hosted
  • 4 percent SMBs don’t have


File sharing/collaboration

  • 56 percent SMBs have on site
  • 23 percentSMBs have hosted
  • 21 percent SMBs don’t have


Backup

  • 71 percent SMBs have on site
  • 22 percentSMBs have hosted
  • 7 percent SMBs don’t have


CRM

  • 52 percent SMBs have on site
  • 31 percentSMBs have hosted
  • 17 percent SMBs don’t have


Webconferencing

  • 40 percent SMBs have on site
  • 39 percentSMBs have hosted
  • 21 percent SMBs don’t have


Website

  • 49 percent SMBs have on site
  • 39 percentSMBs have hosted
  • 12 percent SMBs don’t have


Server

  • 59 percent SMBs have on site
  • 28 percentSMBs have hosted
  • 13 percent SMBs don’t have


E-commerce

  • 46 percent SMBs have on site
  • 33 percentSMBs have hosted
  • 21 percent SMBs don’t have


About the research

The Microsoft Small Business Technology Index 2010 research report was executed by Vanson Bourne (http://www.vansonbourne.com) between November 2009 and January 2010. The research questioned 3,193 small and midsize businesses (up to 500 employees) across 15 countries worldwide: Australia, China, France, Germany, India, Japan, the Netherlands, Norway, Poland, Singapore, South Africa, South Korea, Spain, the UK and the US. A copy of the full research report is available through mscsemea@webershandwick.com.

About Microsoft
Founded in 1975, Microsoft (Nasdaq “MSFT”) is the worldwide leader in software, services and solutions that help people and businesses realise their full potential.
 
About Microsoft EMEA (Europe, Middle East and Africa)
Microsoft has operated in EMEA since 1982. In the region Microsoft employs more than 16,000 people in over 64 subsidiaries, delivering products and services in more than 139 countries and territories.
 
This material is for informational purposes only. Microsoft Corp disclaims all warranties and conditions with regard to use of the material for other purposes. Microsoft Corp shall not, at any time, be liable for any special, direct, indirect or consequential damages, whether in an action of contract, negligence or other action arising out of or in connection with the use or performance of the material. Nothing herein should be construed as constituting any kind of warranty.

 

please sign in to rate this article
45945