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SMEs unaware of potential to compete with big businesses using SaaS

  
By Alex Scroxton

29 October 2008


Microsoft has released the results of a study into SME attitudes towards IT suggesting that around 80% small firms want to compete more effectively with big businesses but are unsure of how to go about getting access to enterprise-grade IT.

 

The survey also showed a lack of awareness of hosted IT services and SaaS, the cash-saving aspects of which Microsoft is keen to talk up during the downturn. Michael Korbacher, EMEA director of web and application hosting at Microsoft, said that only 37% of SMEs were aware of SaaS - although when questioned 65% said they would consider buying IT services on a subscription basis.

 

Korbacher also pointed out that many SMEs were already using free-to-use hosted software without knowing it in the form of webmail services such as Microsoft's Hotmail or Yahoo! and Google equivalents.

 

"Hosted services allow SMEs to accelerate adoption of enterprise-grade applications at a low upfront cost, which is very compelling during the credit crunch," Korbacher argued, calling for partners to take more of a stake in plugging the concept.

 

Commenting on the survey results, Freeform Dynamics analyst Dale Vile said that while demand for hosted services was low there was still time for VARs to get in on the ground floor.

 

The survey, conducted on a worldwide basis, revealed that emerging markets such as Russia and China were scoring highly in terms of SaaS adoption and related concepts such as social networking in the workplace; the UK was also singled out for above average adoption of hosted services.