Sting In The Tail Of The Recession" Will Change SME IT Buying Habits Forever
16/02/2010 by Lea Pachta on Fresh Business Thinking.
Research released today by the Institute of Directors has revealed banks have refused to issue loans to 57 per cent of UK small businesses over the past year, leading one UK CEO to brand this situation "the sting in the tail of the recession" and claim it will have "a fundamental and long-lasting effect on the way businesses buy IT in this country".
Andy Burton, CEO of Fasthosts, said:
The findings of the IoD place the UK small business sector at a crossroads. Many companies have been making do with the same IT infrastructure they went into this recession with. But for how much longer can that continue without stifling business opportunity and performance?
Their ability to grow despite, or recover from, the recession is being hampered by their inability to invest in Assets, so the smartest IT directors will continue to find another way to keep themselves technically competitive. And if they can't buy new hardware, software and infrastructure then they will turn to leasing and the rapidly growing subscription models.
Already there has been a marked shift towards cloud computing and Infrastructure as a Service, as it offers great agility, efficiency and risk transference for those who adopt it. Without doubt, the economic climate means cloud computing is not only the best solution for small businesses, for many it is the only truly viable solution that enables their business aspirations to be realised without capital costs.
We're hearing of company directors putting business costs on their personal credit cards. Nobody is going to buy their own hardware or software if it means taking on the burden of large upfront costs.
Andy Burton, Fasthosts Internet Limited Read the original article