Midsize businesses, those with 100–999 employees, are under increasing competitive pressure from both above and below. Larger companies benefit from economies of scale as well as national and even global capabilities to go after customers that midsize firms may once have had to themselves. Smaller firms are leveraging new technology, building more efficient infrastructure, and showing great agility as they also compete with midsize firms for new customers. Clearly, a return to "business as usual" when it comes to technology investment will not be the answer for midsize firms — fresh thinking is called for.
For many companies, cloud computing (and the public cloud in particular) will be a new way to gain access to important productivity resources in an effective and affordable way. Firms need to expand and be flexible as business conditions change. But they also need to sharpen their defenses against vulnerability to make certain that they can recover from any accident, whether through disaster or human error, that might threaten the business. Empowering business growth and improving data protection are not contradictory goals since advanced technology can be deployed to effectively support both.
A growing number of large businesses are already using cloud resources, and some small firms are making use of online applications to sidestep traditional hardware and software solutions. The question for midsize firms is whether or not alternative approaches can provide more efficient access to advanced capabilities coordinated through off-premises delivery. This IDC Executive Brief reviews different cloud computing approaches and provides a framework for evaluating different cloud solutions. It also reviews the kinds of resources that have gained the most traction with midsize firms, examines future trends, and discusses the five key questions that companies should consider as they move forward with potential cloud implementation.
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It's Time for Midsize Firms to Leverage Cloud Computing Capabilities: Key Next Steps
1. I D C E X E C U T I V E B R I E F
It's Time for Midsize Firms to Leverage Cloud
Computing Capabilities: Key Next Steps
May 2012
Adapted from Worldwide SMB 2012 Predictions: Shifting Priorities, Opportunities, and Challenges as SMB
Spending Exceeds $500 Billion by Ray Boggs, IDC #233916
Sponsored by NetApp
Introduction
Midsize businesses, those with 100–999 employees, are under increasing competitive pressure from
both above and below. Larger companies benefit from economies of scale as well as national and
even global capabilities to go after customers that midsize firms may once have had to themselves.
Smaller firms are leveraging new technology, building more efficient infrastructure, and showing great
agility as they also compete with midsize firms for new customers. Clearly, a return to "business as
usual" when it comes to technology investment will not be the answer for midsize firms — fresh
thinking is called for.
For many companies, cloud computing (and the public cloud in particular) will be a new way to gain
access to important productivity resources in an effective and affordable way. Firms need to expand
and be flexible as business conditions change. But they also need to sharpen their defenses against
vulnerability to make certain that they can recover from any accident, whether through disaster or
human error, that might threaten the business. Empowering business growth and improving data
protection are not contradictory goals since advanced technology can be deployed to effectively
support both.
A growing number of large businesses are already using cloud resources, and some small firms are
making use of online applications to sidestep traditional hardware and software solutions. The
question for midsize firms is whether or not alternative approaches can provide more efficient access
to advanced capabilities coordinated through off-premises delivery. This IDC Executive Brief reviews
different cloud computing approaches and provides a framework for evaluating different cloud
solutions. It also reviews the kinds of resources that have gained the most traction with midsize firms,
examines future trends, and discusses the five key questions that companies should consider as they
move forward with potential cloud implementation.
Cloud Computing Definition: Technology Resources Available
"Off-Premises"
Cloud computing may seem a variation of a classic approach to technology deployment — a
centralized resource that is shared remotely. It basically involves using a service provider to access
resources that are hosted or located offsite and delivered through high-speed Internet connections.
Web hosting or remotely hosted email (such as hosted Exchange) is most common and, like remote
storage, was being used by many midsize firms long before "cloud computing" became a popular
term (and decades after the idea of time sharing helped reduce company IT costs).
IDC 1320