A survey of small businesses shows that small- and medium-sized businesses (SMBs) using hosted IT achieve stronger business benefits from their IT investments – and are typically more satisfied compared with those who manage technology in-house.
Titled “The Small Business Transition to Hosted Technology: Costs vs. Benefits,” the study was conducted by BizTechReports.Com for The Planet, one of the largest private dedicated hosting companies. It surveyed 325 SMB executives from 17 industries. Over 97 percent of the respondents worked in companies with fewer than 100 employees.
According to the report, 54% of SMBs that outsource their IT infrastructure spend less than 5% of annual revenue to maintain and upgrade IT infrastructure, while 64% of non-hosting companies spend over 10% of revenue on IT. At the same time, 68% of the IT outsourcers are more likely to use their IT assets to engage in e-commerce than companies that manage IT infrastructure internally (29%).
An overwhelming percentage of the outsourcing companies—85%-- say their IT organizations play a key role in staying competitive in their respective industries than those that do not outsource. In addition, the outsourcing companies suffer fewer security incidents and technical failures than their non-hosting counterparts, leaving them better positioned to avoid or mitigate downtime risks.
SMBs that host are also twice as likely to use cutting-edge technologies and approaches such as Software as a Service (SaaS (News - Alert)), the study said.
“These findings illustrate a powerful trend taking place in the SMB technology market,” said The Planet’s vice president of marketing Steven Kahan. “The growth of the hosted infrastructure model is enabling smaller companies to compete on an equal IT footing with big business, particularly with powerful e-commerce applications that drive top-line revenues.
BizTech Reports.Com chief executive Lane Cooper, who conducted the survey, added, “Small and medium businesses are much further along the sophistication curve than one would have expected when it comes to using technology to enable their businesses and build revenue,” said Cooper. “The survey shows SMBs are putting just as much thought into aligning technology investments with business objectives as their larger counterparts. Companies that host are clearly gaining valuable benefits, with the most compelling argument that they are doing more, spending less and gaining tremendous benefits by focusing on their businesses, rather than on IT management.”
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Spencer Chin is a contributing editor for TMCnet. To see more of his articles, please visit his columnist page.
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