SMEs Failing To Adopt Cloud Technology Despite Benefits

LONDON--(BUSINESS WIRE)--SMEs are missing out on the benefits of cloud technology due to unfounded fears over data security, according to a new academic study sponsored by the Chartered Institute of Management Accountants (CIMA).

Researchers from the University of Greenwich, Dublin City University and the Witten/Herdecke, WHU - Otto Beisheim School of Management have found that firms are reluctant to adopt cloud computing apart from only the most common uses such as email and file sharing. Only one in four firms (25%) have adopted cloud technology for business systems with even fewer (19%) making use of the cloud for financial accounting. Less than a third (31%) use cloud computing for customer relationship management.

The primary reason for not using cloud technology is concern over data security, with 66% of businesses citing this as their main worry. However, the research shows that in spite of public perception, cloud providers can typically offer increased security at a much lower cost than SMEs could otherwise afford. According to the report, cloud technology also gives the benefits of more efficient business processes and both time and cost savings but low adoption rates mean that businesses fail to gain these advantages.

Dr Martin Quinn, Management Accounting Lecturer at Dublin City University, said: “Despite an appreciation of the advantages of cloud technology in general, our research shows that firms are holding back in key business areas, particularly in their management accounting and finance systems. Data security concerns are valid but overstated and businesses need to better understand the security, cost-savings and flexibility they can gain from adopting cloud technology.”

ENDS

Notes to Editors

1. The Chartered Institute of Management Accountants (CIMA), founded in 1919, is the world’s leading and largest professional body of management accountants, with over 218,000 members and students operating in 177 countries, working at the heart of business. CIMA members and students work in industry, commerce, the public sector and not-for-profit organisations. CIMA works closely with employers and sponsors leading-edge research, constantly updating its qualification, professional experience requirements and continuing professional development to ensure it remains the employers’ choice when recruiting financially-trained business leaders.

Professionalism and ethics are at the core of CIMA’s activities with every member and student bound by robust standards so that integrity, expertise and vision are brought together.

CIMA has formed a joint venture with the American Institute of CPAs (AICPA) to establish the Chartered Global Management Accountant (CGMA) designation. CGMA is the global quality standard that further elevates the profession of management accounting. The designation recognises the most talented and committed management accountants with the discipline and skill to drive strong business performance.

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