Small To Midsize Businesses Continue Migration To Cloud-Based Business Applications

PRESS RELEASE

AUSTIN, Texas – June 20, 2013 – Spiceworks, the vertical network for IT, today announced the results of a new survey highlighting how cloud-based applications are forcing small to mid-sized businesses (SMB) to balance IT requirements with employees' needs for anytime, anywhere access to information. The report, "Catching up to the Cloud: Steady Migration Into Cloud-based File Sharing, Email and Productivity Services" showcases the growing adoption of cloud-based applications at SMBs and how both companies and their employees play a role in the selection of most services. The independent study was sponsored by LogMeIn, a provider of cloud-based connectivity services.

SMBs are embracing cloud-based file sharing, email and productivity services to give their employees the tools they need to work at any time and from anywhere. These solutions can also help reduce management headaches for IT departments, decrease costs and are generally easy to use. However, IT professionals do have security and compliance concerns regardless of the service.

"The survey results shows that cloud-based services continue to be an integral way employees access information, communicate, and collaborate during their work day," said Kathryn Pribish, Voice of IT program manager at Spiceworks. "Over the last year, we've seen that more companies are taking notice and formally adopting solutions that meet the ease of use and accessibility demands of their employees while maintaining corporate security, cost and compliance requirements."

Survey highlights include:

Hosted email poised to surpass on-premise deployments; Microsoft Office 365 surging

· Hosted email deployments showed growth of four percent over the last year, from 42 to 46%, with another five percent planning to migrate to a hosted offering in the next six months. This growth comes at the expense of on-premise deployments, which fell three percent over the same period, from 52% to 49%.

· While Google still leads in hosted email deployments, Microsoft Office 365 is surging among SMBs. Office 365 usage has nearly doubled over the last year from 16 to 30%. During the same period, Google usage fell two points to 32%.

Dropbox shows wide lead among vendors as file sharing usage continues to grow

· Of the technologies evaluated in the survey, cloud-based file sharing services remained the clearest example of how employees are using services on their own. However, IT departments are moving to approve file-sharing services within their organizations.

· Fifty percent of the IT professionals surveyed state that employees are using file-sharing services on their own, an increase of 17% over last year. Of those, 93% state their employees are using Dropbox. Vendor preference is more balanced for the 24% of respondents with a company-approved file sharing service. Dropbox leads with 40%, up from 28% last year, followed by Google Apps at 24% and Box at 10%. Companies with approved solutions have risen five percent in the last year.

· As expected, security/compliance, accessibility and cost top the list of considerations SMBs take into account when selecting file sharing services.

SMB IT departments moving quickly to approve web conferencing, collaboration applications and productivity suites

· Widespread availability of affordable, high-speed Internet access has driven the use of web conferencing to connect remote teams. In fact, 51% of IT respondents say they have an approved web conferencing vendor or are planning to approve one in the next six months, with 49% of these respondents using Cisco WebEx. Of those respondents who state that employees are using web conferencing technologies on their own, vendor preference is evenly divided between Cisco WebEx and Citrix GoToMeeting.

· A similar dynamic is taking shape among the 30% of companies who have an approved collaboration tool or are planning to deploy one in the next six months. Of these companies, Evernote is used by 41% while Basecamp is used by 19%. Evernote also leads among respondents who state that employees are using collaboration tools on their own. Of these, 76% say their employees are using Evernote, 15% are using Basecamp and five percent are using Zoho Projects.

· Finally, 48% of SMBs are currently using or plan to use cloud-based productivity applications such as Office 365, Google Apps, or Zoho in the next six months. Among those companies, preference is evenly divided between Microsoft Office 365 (60 percent) and Google Apps (59 percent). However, Google Apps holds a significant lead among those respondents who state their employees are using a cloud-based productivity suite on their own. Of these, 78% say their employees are using Google Apps while 41% say Office 365 is preferred.

Methodology

The survey included more than 500 global respondents from a variety of industries including manufacturing, education, IT service providers, healthcare, retail and government. Forty-three percent of respondents were from North America and 57% from EMEA. Respondents are members of Spiceworks' Voice of IT program and are among the more than 2.5 million SMB IT professionals in the Spiceworks Community.

About Spiceworks Voice of IT

The Spiceworks Voice of IT market insights program publishes statistics, trends and opinions collected from small and mid-size business technology professionals worldwide. More than 500,000 IT professionals in over 100 countries have joined the program to share information and feedback on the technology issues important to them.

To receive updates on future research, follow Spiceworks Voice of IT on Twitter at @VoiceOfIT, and sign up for Spiceworks Voice of IT research e-mails at http://www.spiceworks.com/marketing/resources/. To learn more about Spiceworks' research programs and services, contact [email protected].

About Spiceworks

Spiceworks is the vertical network for IT that connects 2.5 million IT professionals with over 2,200 technology brands to simplify how IT professionals discover, buy and manage more than $450 billion in technology products and services each year. Headquartered in Austin, Texas, Spiceworks is backed by Adams Street Partners, Tenaya Capital, Institutional Venture Partners (IVP), Shasta Ventures and Austin Ventures. For more information visit http://www.spiceworks.com.

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