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SMB cloud adoption trend has a silver lining for MSPs

Over the past year, as the global pandemic forced businesses of all sizes to adjust to remote work scenarios and economic upheaval, small and medium-sized businesses (SMBs) increased their use of cloud-based technologies. Jason Howells, VP, MSP International Sales at Barracuda MSP, says that MSPs should take this opportunity to help them leverage the cloud in ways that can enable them to succeed and thrive

According to SMB Group’s 2020 Top 10 SMB Technology Trends, embracing new technologies and business processes will be critical for these smaller companies, many of which were pushed to the brink during the business disruption in 2020.

According to the report, technology will play a crucial role in helping SMBs gain the flexibility and agility they need to adapt and position their businesses as 2021 unfolds. Many SMBs reported that post-pandemic business might look very different. While 22 per cent of respondents said they expected demand for traditional products to return, nearly one-third (28 per cent) said they are making business model changes and creating new offerings. In comparison, 16 per cent said they had grown during the pandemic.

SMB Group's 2020 Top 10 SMB Technology Trends report
SMB Group’s 2020 Top 10 SMB Technology Trends report

A clear differentiator
The cloud emerged as a clear differentiator for SMBs in 2020. Cloud technology helped them shift to a virtual or remote work scenario during the pandemic and launch new virtual services. Employees could obtain real-time access to business process tools even while working from home, and the cloud also accelerated the shift to line sales via e-commerce.

When asked about their use of cloud-based services and solutions, SMB Group reports that in every category, 83 per cent or more of respondents said cloud applications have been extremely/moderately valuable in helping to survive the COVID-19 crisis.

Cloud solutions also provide a valuable sense of control during volatile times. SMBs could plan for various scenarios and forecast how new service offerings or policies might affect their business. The report states that cloud solutions have enabled SMBs to access applications and data from anywhere and suggests that having proved their worth, SMBs will move more business processes to the cloud sooner than they would have planned before the pandemic to maintain business continuity.

Double-digit increase
Cloud adoption was already reasonably healthy before the pandemic, with 59 per cent of SMB respondents reporting they were already using cloud-based business apps and 49 per cent using cloud-based file-sharing or back-up solutions.

Implementation of cloud services and solutions increased by double digits during the pandemic across all categories – from 14 per cent of respondents shifting to cloud-based business apps to 27 per cent doing so for video/web conferencing. New adoption of cloud-based security during the pandemic was reported by 19 per cent of respondents, on top of the 44 per cent that already used those solutions.

The SMB Group report predicts these cloud investments will continue expanding, in its report it states that cloud computing has been a lifesaver for SMBs during these trying times, enabling them to adapt to new operational requirements and to keep up with changing customer and employee requirements. Moreover, more than 80 per cent of respondents said cloud-based business applications have been valuable in sustaining their business, and 37 per cent noted that the pandemic has made them more likely to choose a cloud solution for new application Investments.

What does this mean for MSPs?
For starters, those with cloud-based service and product portfolios can take advantage of current conditions to make a more significant push for services among SMB customers. Now that a considerable number of these companies have been forced to experiment with the cloud for everything from video conferencing to security and back-up, they may be much more open to making the switch to the cloud permanent.

The recovery expected in 2021 can also help lay the groundwork for MSPs to help current clients implement disaster response and recovery plans as well as evaluating their customers’ security postures. No one was prepared for the slow-rolling disaster of 2020, which affected every sector to one degree or another and created IT and logistics challenges for companies that were not set up for remote collaboration scenarios with their staff and clients/vendors.

A strong case for cloud
MSPs can now make a strong case for cloud-based solutions serving as a foundation for a rapid response to future challenges (anything from cybersecurity incidents to natural disasters to even a gas leak requiring a building evacuation). The cloud makes it easier to shift operations at a moment’s notice with minimal business disruption.

SMBs were already embracing the cloud before the pandemic because it offered flexibility and agility, resource allocation and ease of use. The pandemic pushed them to test these solutions in even more application areas like security, IT access and collaboration. MSPs with cloud services expertise can help them maintain this momentum while potentially improving their competitiveness and profitability.