Small-Business Data Still Floats Outside of the Cloud - eMarketer

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Small-Business Data Still Floats Outside of the Cloud

Minority of SBOs use data centers and the cloud; many have cut back on customer data analysis

August 19, 2015

Despite earlier findings that technology would be a top focus for small businesses this year and see increased spending, recent research indicates this is far from happening when it comes to data organization.

US Small-Business Owners Who Have Migrated to the Cloud, July 2015 (% of respondents)

In July 2015 polling by The Small Business Authority, six in 10 US small-business owners (SBOs) admitted that their data wasn’t stored in a data center. Further, just one-third of SBOs said they had migrated to the cloud.

Despite the ever-increasing importance of gathering, aggregating and acting on data, longitudinal research by Ebiquity for American Express found in the most recent study that small businesses had actually cut back on customer data analysis. Among US SBOs polled in spring 2015, just 45% said they analyzed customer or other data, vs. 69% who said so in fall 2014 and 65% in spring 2014.

US Small-Business Owners Who Analyze Customer or Other Data, Spring 2014, Fall 2014 & Spring 2015 (% of respondents)

When asked about the biggest barriers to implementing data analytics, respondents were most likely to cite time constraints, though this was down from 48% in fall 2014 to 42% in spring 2015. Cost had become less of an issue, falling from 32% of respondents to 22% between fall 2014 and spring 2015, while a lack of knowledge about how to conduct this had become a larger barrier, rising from 24% to 28% between the past two studies.

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