With tougher economic times, companies are reducing IT budgets but are still finding the need to replace legacy systems. Because of this, claims a Gartner report released earlier this year, many CIOs have turned to cloud computing as a way to save on IT costs.
Cloud computing, for all of its recent publicity, is not new. In the decades before PCs, companies purchased computing resources on mini-mainframes that were accessed through end-user terminals. Cloud computing’s recent re-emergence is a result of companies again considering the cost savings of having someone outside the company handle IT infrastructure and maintenance.
But the companies that have arguably the most to gain from cloud computing, small and medium sized businesses (SMBs), are still unconvinced. According to a recent Newtek survey, 48% of small businesses owners do not see a switch to the cloud as a cost-reducing move. Continue reading

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