Security benefits of cloud computing dispel adoption barrier for small to mid-size enterprises

Cloud services reduce time and money spent managing security and increase protection against cyber threats, Microsoft study shows

KUALA LUMPUR — 22 May 2012 — Research released today by Microsoft Corp. shows that small and medium sized enterprises (SMEs) are gaining significant IT security benefits from using the cloud, according to a new Microsoft study in five geographies.

The study shows that 50 percent of Malaysian companies have experienced noticeably higher levels of security since moving to the cloud. In addition, 52 percent say they spend less time worrying about the threat of cyber attacks. Malaysian SMEs using the cloud also spend 56 percent less time each week managing security than companies not using the cloud. They are also two times more likely to have reduced what they spend on managing security as a percentage of overall IT budget.
“There’s a perception that security is a barrier to cloud adoption,” said Adrienne Hall, General Manager, Microsoft Trustworthy Computing, “Yet when companies embrace and invest in cloud services, they find the benefits far outweigh previous concerns.”

Time and money spent managing security prior to using cloud services is being re-invested by SMEs to grow their business and be more competitive. The survey shows that, in Malaysia:
 38 percent of SMEs that use the cloud said they were able to employ more staff in roles that directly benefit sales or business growth; 70 percent invest in more product development or innovation; and 44 percent experienced improved agility and competitiveness.
 Over half of those surveyed (52 percent) said that using the cloud enabled them to add new products and services that benefit their business more quickly and securely.
 38 percent said the cloud made it easier for them to scale their business to explore new markets.

“Malaysian SMEs must take that bold step to adopt secure and scalable technology infrastructures such as the cloud if they are to succeed in a global, interconnected economy,” said SME Corp’s Chief Executive Officer, Dato’ Hafsah Hashim. “Among other benefits, the cloud takes the hassle of managing security away from the SMEs, which then gives them the freedom to focus on innovating and growing their business.”

“Cloud computing services are considered as an affordable solution for SMEs to outsource their ICT maintenance. Though some Malaysian SMEs have expressed their concerns over security on cloud computing, however they do acknowledge that transparency on security practices would boost their confidence in the cloud,” said CyberSecurity Malaysia Chief Executive Officer, Lt Col (R) Prof Dato’ Husin Jazri. He added SMEs must have adequate knowledge on information security so that they know how to respond effectively to any cyber security incidents.

The study, commissioned by Microsoft and conducted by research company comScore, polled companies with between 100 and 250 PCs in the U.S., Singapore, Malaysia, India and Hong Kong. For the purpose of this research, cloud users were defined as companies that used a cloud service via a subscription model.