Small businesses have been increasing their subscriptions to cloud-based software at a rapid pace. These subscriptions have increased 7% for businesses with less than 20 employees in 2013 and 85% of small businesses are planning to increase their software spending in the next five years according to Intuit. Business owners have been upgrading their technology since the market recovery began, but use of cloud technology did not increase as drastically as it is currently. Small businesses were uncertain about using the cloud because of their relative lack of tech-savvy employees and security breaches that could jeopardize their financial futures. However, cloud technology has recently picked up because many owners want to operate with more efficiency and want the option of operating in multiple locations.
The expectation for the coming years is that cloud-based software will only continue to grow amongst small businesses. In order to meet the expected demand and profit from this demand, many cloud-computing service providers are teaming with different types of capital providers to maximize this potential. This seems like a safe bet according to IDC, a New York-based market research firm; they expect Software as a service to grow nearly five times faster than traditional on-premise software between 2013 and 2018.