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Cloud Technology the First of Many Disruptions for Small Business

Cloud Technology the First of Many Disruptions for Small Business

By | 08.21.14
Cloud Technology the First of Many Disruptions for Small Business

According to a new report produced by Emergent Research and Intuit, it is projected that 80 percent of U.S. small businesses will run in the cloud by the year 2020. In fact, Steve King of Emergent Research states that the cloud is the first of many disruptions for small business.

“We don’t use that term lightly,” said King. “When we say disruptive shift, we do believe things are fundamentally changing and a new economy is emerging.”

To further illustrate just how disruptive cloud technology is becoming for small business, King goes on to draw parallels between three generations of the cloud and the stages of the railroad industry. According to King, we’re in the beginning of the second generation of the cloud in which he states, “it’s easier and cheaper to start and scale a business, and we’re seeing the efficiency gains continue.”

The cloud report, the first in a series titled “Dispatches from the New Economy”, also examines four personas of small business that have fully embraced and adapted to the cloud. They are as follows:

  • Plug-in Players: companies that “plug in” to cloud providers who provide tailored solutions.
  • Hives: also referred to as the “Hollywood model” in which companies leverage talent on a project or as-needed basis.
  • Head-to-Headers: small businesses who are now able to compete with larger firms by using plug-in cloud services to reach markets once only accessible to their larger competitors.
  • Portfoliosts: freelancers who are taking advantage of the convenience and affordability of cloud services to build their own businesses.

Other technology trends and their impact on small business are expected to be examined in future reports of the series. Read more insights about the first report in the series.

Reference:

Lee, Danielle. “Cloud Creating Disruptive SMB Personas, Opportunities”. accountingtoday.com. 8/8/2014.

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