In a sign that the cloud is becoming a significant business opportunity accounting software provider MYOB has announced a 14% rise in its half year profit to $40 million. The company has said that there has been a record uptake in their cloud solutions with subscriptions going from 142,000 in June to 150,000 by early August. Overall the business now has 528,000 paying users, up 10% and ahead of forecasts with revenue up 8% to $161 million.
Back in 2013 the company’s March MYOB Business Monitor study showed that only 16% of more than 1,000 SME’s surveyed considered using the cloud with MYOB CEO Tim Reed saying at the time that “It’s obvious that as time goes on, Australian business operators using Cloud computing are increasingly likely to achieve positive financial results. This ubiquitous technology has helped so many smaller businesses become better connected, more productive and more competitive,”
It turns out he was right on the money with more and more SME’s finding the proposition of not only moving to the cloud appealing but using cloud specific products to do business anywhere and at any time. Andrew Sharp, who advises small businesses setting up in Australia from New Zealand told me this morning that “MYOB had the foresight to predict this two years ago and it’s a pretty simple proposition for those SME’s wanting to get started in a new market – how can I access what I need to run my business in a new market as opposed to having to rely on location based servers.”
It’s also about the cost savings that can be achieved as a result of going cloud as Gene Marks, a former senior manager at KPMG, said “$100 per month x 20 users is $2,000 per month or $24,000 PER YEAR for a cloud based service. How many servers can you buy for that amount? Imagine putting that proposal out to an experienced, battle-hardened, profit generating small business owner who, like all the smart business owners I know, look hard at the return on investment decision before parting with their cash.”
Take a look at these three reasons for why you should consider moving to the Cloud:
Lower Costs: As Gene has said the great things about cloud solutions is the ability to lower costs and reduce reliance on expensive servers. This is particularly true of those SME’s that grow and develop from start-up and take on more and more data from customer to financial. The need for less space to locate a server farm also means savings when it comes to space utilisation for the business.
Increased collaboration: The main benefit is the ability to access applications, folders and files from anywhere in the world. You can also easily integrate and make use of other applications such as cloud connectivity between different storage options like Google Drive, Microsoft’s OneDrive and Drop Box. The appeal to access your information from the road is one very serious value add
Increased flexibility from the cloud to mobile devices: we traditionally relied on having to arrive somewhere and attempt to connect to a server to access our documents or data – now, with the advent in the use and functionality of mobile phones the ability to access is now only confined by your mobile device connection to the internet.
The sector is also predicted to grow as uptake picks up:
In 2008, the global cloud computing industry was estimated to be worth $46 billion. By the end of 2014 the industry is predicted to be worth more than $150 Billion.
According to a recent survey completed by Forbes, three quarters of those surveyed use some form of cloud computing platform, whether that’s for emails, storing photos, music streaming or address books and calendars. The most used cloud computing platforms were: Google, Microsoft and Amazon.
86% of companies use more than one type of cloud computing service with most using four or more.
Studies predict that more than 50% of all information technology will be in the cloud within the next five to ten years.
In the next five years hybrid clouds are expected to represent 43% of the market.
By 2016 the Asia Pacific is expected to account for 1.5 Zb of global cloud computing usage – making them the highest users worldwide. By comparison, the second highest user will be North America accounting for 1.1Zb (a Zb is a Zettabyte, which is one billion Terabytes).
So, if youre in the business of small business it seems as if everyone agrees - moving to the cloud and using cloud based applications isn't just a money saver its a time saver and as those who run a small business knows time is the greatest asset of all. Keep an eye out for our full clouod computing series coming up in September!
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