Cloud Computing Adoption Trends Rise According to Spiceworks Study

New Study Sees Rise in Cloud Computing Services Adoption Among Small and Medium Businesses in First Half of 2010 AUSTIN, Texas - July 28, 2010 - During the first half of 2010, 14 percent of small and medium businesses (SMBs) reported using cloud computing services and another 10 percent reported plans to deploy cloud-based services, according to a new study conducted by Spiceworks™, Inc.

These findings were uncovered in a global survey of 1,500 IT professionals at small and medium businesses (SMBs) with fewer than 1,000 employees. The survey was designed to uncover cloud computing software adoption trends and sentiments among SMBs. Results of the survey are available in a free report titled: "SMB Cloud Computing Adoption: What's Hot and What's Not." Highlights include:

• Smaller SMBs are more aggressive when it comes to cloud services adoption than their larger SMB counterparts. 38 percent of SMBs with fewer than 20 employees use or plan to use cloud solutions in the next 6 months. This adoption rate is markedly higher than the 17 percent of organizations with between 20 and 99 and the 22 percent of organizations with more than 100 employees that use or plan to use cloud services over the same time period.

• SMBs in emerging markets lead the pack. 41 percent of small and medium businesses in Latin America/South America (LASA) and 35 percent of SMBs in the Asia/Pacific region are adopting cloud services. This is well ahead of the 24 percent of SMBs in North America and 19 percent in Europe that are adopting cloud services.

• Technology companies are adopting cloud services at a faster pace. 34 percent of SMBs in the tech sector use or are planning to use cloud services. Companies in the services sector (e.g. finance, HR, consulting) comprise next fastest growing vertical segment with 22 percent using or planning to deploy cloud solutions. Most other industries trail closely behind with 20 percent adoption rates.

• 62 percent of SMBs have no plans to move to the cloud in the next 12 months citing technology and security concerns. Companies with 20-99 employees and typically one full-time IT pro on staff were least likely to move, along with companies in core industrial segments (manufacturing, aerospace, engineering) and social services (government, education, healthcare).

"Small companies with little existing infrastructure and outsourced IT are moving most quickly to cloud computing software, whereas larger SMBs are taking more measured steps due to considerable investments in onsite technology," said Jay Hallberg, co-founder and vice president of Marketing for Spiceworks. "With seven times as many users as the enterprise market, it's important for cloud service vendors to consider cloud service adoption patterns and to make it simple for SMBs to manage hybrid on-premise and cloud solutions."

The "SMB Cloud Computing Adoption: What's Hot and What's Not" survey was conducted by the Spiceworks Voice of IT™ (VoIT) market research program. Survey respondents were from 87 different countries and among the 1 million SMB IT professionals that use the free Spiceworks IT management software to manage their computer networks. For more information on this survey and for a complete list of survey results, visit http://www.spiceworks.com/voice-of-it.

To receive updates on future research, follow Spiceworks Voice of IT™ on Twitter at http://www.twitter.com/VoiceOfIT or @VoiceOfIT, and sign up for Spiceworks Voice of IT™ research e-mails at marketresearch@spiceworks.com.

About the Spiceworks IT Management Software:
With more than 1 million users in 196 countries, Spiceworks is the most widely deployed and fastest growing IT management application in history. Spiceworks combines free network management, network monitoring and help desk software with a rapidly growing and active Facebook-like community of IT professionals. The user community currently supports 35 million workers, manages 60 million computers and devices, and spends $180 billion annually on technology products and services.

About Spiceworks Founded in 2006, Spiceworks™ develops the first free social IT management application that combines network management and help desk software with a "Facebook-like" online community of IT professionals to help over 1 million IT pros and 140,000 IT service providers simplify everything IT. Spiceworks makes it easy for businesses to manage IT products and services on-premise or in the cloud, collaborate to solve technology problems, and find the IT knowledge and products they need day-to-day. Through its Voice of IT™ market research program, the company enables direct conversations with IT professionals, conducts surveys and provides insight on important technology usage, staffing and purchasing trends by small and medium businesses worldwide. Spiceworks is a privately held company headquartered in Austin, Texas with funding from Institutional Venture Partners (IVP), Austin Ventures and Shasta Ventures.
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Spiceworks and Voice of IT are trademarks of Spiceworks, Inc. All other names may be trademarks or registered trademarks of their respective owners.

Contact:

Karl Scholz

For Spiceworks

(512) 493-0909