Why SMEs are migrating to the cloud in numbers

More than ever before, small-to-medium-sized enterprises (SMEs) are migrating to the cloud. Current trends indicate that investment in the cloud is set to grow. It is estimated that global spending on public cloud services will exceed R8.6-trillion this year.

Looking ahead, global cloud adoption is expected to expand rapidly. There is a strong demand for digital environments that improve IT reliability and support hybrid work models. The cloud offers a flexible and scalable networking solution for SMEs. Current cloud trends suggest that these technologies are here to stay.

Even though many companies are back to business as usual, the pandemic has reshaped the nature of the workplace and removed much of the stigma related to remote work. For many SMEs, catering for remote teams opens them up to a much wider pool of talent. In many industries, South Africa faces a skilled shortage, so having flexible contracts that allow for remote work has helped to remedy this to a certain extent.

What makes the cloud attractive to SMEs?

While large enterprises may have massive IT budgets, SMEs generally cannot afford to invest in on-premises data centres and servers. There are also a number of costs associated with storing and maintaining these systems.

What's more, it is very difficult to scale an on-premises data centre or server in response to surges in demand. SMEs generally do not have the resources needed to invest in the required hardware and software, making the cloud an attractive solution to their networking and data storage requirements.

Clouds are based on pooled resources in multi-tenant environments. This reduces the risk for SMEs because they do not have to host their own servers and networks. Data centres are designed to cater for multiple users, with virtualisation software separating the various users to ensure maximum cyber security.

Apart from the cost of the cloud itself, SMEs can save on maintenance and security when they adopt a public cloud solution. Security not only includes cyber security, but also physical protection methods to ensure that data centres are safe from criminal activity, such as break-ins, arson or vandalism.

Cloud computing reduces IT costs for SMEs

The advent of the cloud has rapidly reshaped business models. On-site computing is a lot more costly to deploy, maintain and upgrade. Businesses only pay for what they use, with flexible pricing options that can be easily scaled up or down depending on changes in demand. With auto-scaling, SMEs do not even need to manually upgrade their networking requirements,

On-premises hardware needs to be fully owned and managed by the business and this results in high operational costs. Cloud environments run by a third party provider are much more affordable and less risky for businesses. This results in more predictable pricing as any upgrades or maintenance is undertaken by the service provider rather than the business itself.

On-premises computing requires a lot of energy for cooling and powering the hardware. For them to work optimally, businesses need backup generators which are expensive but necessary given the current energy crisis in South Africa. This further adds to the cost of on-premises computing and is a cost that can be avoided when businesses opt for the cloud.

Another major advantage of using a third-party cloud provider is that SMEs do not have to employ their own in-house tech teams. Reputable third-party cloud providers offer the necessary technical know-how and customer support. Seacom Business provides 24/7/365 support for clients to ensure that their business networks are always up-and-running.

SMEs benefit from migrating to the cloud

Cloud computing offers a range of benefits, including improved processing power, lower cost, rapid scalability, high security and on-demand accessibility. Cloud computing makes SMEs more competitive and agile. Out-of-the-box solutions are the cheapest and easiest ways for SMEs to enjoy world-class cloud solutions.

Cloud computing is web-based. Data that is stored on the cloud can be accessed from any location. This means that remote teams can collaborate from anywhere. Sharing files is much easier and quicker via the cloud. Even for businesses that encourage employees to work on site, the cloud gives teams a centralised workspace.

Continuous back-ups ensure that work is never lost and employees can access all their workloads from any location. Cloud-based unified communication software, such as Microsoft Teams, allows employees to access all their documents, spreadsheets, databases and communications from one centralised point. The cloud supports simultaneous collaboration by multiple users, whether they are sitting in the same office or many kilometres apart.

Considerations before migrating to the cloud

For SMEs planning to migrate to the cloud, there are a few factors to take into consideration. Firstly, the decision needs to be made whether to use a third party provider or handle the migration in house. The benefit of a third party provider is that they will oversee and manage the migration, as well as providing support after migration has taken place. This reduces costs for SMEs because they do not need to employ in-house tech teams to undertake the migration.

SMEs that already have a legacy system in place will need to consider the best timeline and approach. It is essential that the migration to the cloud doesn't create a major disruption to daily operations. The new cloud environment needs to integrate well with existing systems and third-party applications. SMEs should consider a public cloud solutions, such as Microsoft Azure, as it is highly compatible with other systems and can be customised according to business requirements.

Seacom Business provides a range of cloud services to South African SMEs. Whether your business is just starting its digital transformation journey, or whether it has legacy systems in place, our team of experts is available to support your business. For more information or to get a quote for our cloud solutions, email us at marketing@seacom.com or leave us a message.

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