A recent study by Rackspace has revealed some interesting statistical tidbits about cloud and its role in helping jumpstart start-ups. In a nutshell, the survey shows that most business experts believe cloud is the foundation for the surge in new businesses, both here and in the United Kingdom.
According to the survey, which targeted 1,300 executives, 62% of respondents either totally or somewhat agreed with the statement “cloud computing is a key factor in the recent boom of entrepreneurs and start-ups.” A quarter of the respondents strongly agreed. Why? Well, cloud empowers a new business to ramp up quickly, infusing that environment with the ability to scale as needed without demanding a huge upfront investment in a high-end IT environment. It offers ubiquitous access – great when you are running a start-up and wooing venture capitalists as well as customers. Because cloud is so easily managed out of house, thanks to savvy cloud services providers and their partners, a new business doesn’t need to worry itself about email and backup, it can concentrate on developing the next great thing.
The group surveyed definitely brought experience to the table when they sat down to answer the survey questions – 43% had launched their businesses within the past three years. A majority, 52%, said investing in on-premises IT resources would have impeded their ability to start and build their business. A big chunk of the entrepreneurs, 43%, say the availability of cloud-based resources made it “a lot easier” to set up business. And nearly 50% boasted that cloud computing helped position their business to compete with larger companies.
Here’s some more interesting stats that might help you make the case for cloud with new business owners:
58% realized cost savings by avoiding IT infrastructure costs
48% found cloud delivered the ability to scale up cost effectively
46% found cloud easier to deploy, use and manage than on-premise solutions
45% say cloud offers them as entrepreneurs the ability to buy only what they need, without paying for additional unnecessary service elements
41% experienced productivity gains due to less time dealing with IT issues
38% felt they had more control over IT spending with cloud
36% depend on the predictable monthly costs to manage cash flow
24% believe cloud allows them access to the same caliber of high performing services that larger competitors use