New figures from Gartner research found that, out of 2,000 IT teams surveyed, as much as 50 per cent of operational budget was being freed up by a move to the cloud, allowing firms to use that money elsewhere.
The government’s new Enterprise Capital Fund, launched in April, provides £40 million in funding to support high-growth SMEs.
"It is absolutely vital that ambitious small firms can access the finance they need to expand and grow," said Mark Prisk, Business and Enterprise Minister, who sees cloud computing as key to SME expansion. He believes new small firms have the “highest growth potential”.
Gartner analyst Dave Aron recently said that only a small number of SMEs recognise the true benefits that cloud computing can bring to their business in terms of cost effectiveness. Cloud computing can be used on a pay-as-you-go, on-demand service, with remote access to support the modern workforce. Initial outlay and on-going costs such as IT resource and maintenance are significantly reduced by cloud computing and, without the need for implementation of hardware and other components, firms can also get set-up quickly – in less than a week, in most cases.