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Are Small Businesses Interested in Online Storage Services?

The Diffusion Group, March 2006, Pages: 8


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With AOLs 2005 purchase of online storage company Xdrive and Google seriously considering an online storage offering, questions abound regarding the nature of demand for online storage solutions among both consumers and businesses. Is there a critical mass of end-users willing to store their important data online? If so, what kind of data, and how much, will they want to store online?

Traditionally, advanced data services have found their initial audience among large enterprises, thereafter slowly trickling to small businesses and ultimately to consumers. Will online storage follow the same adoption curve, or is it by nature better suited for small businesses or consumers rather than large enterprises?

In this Q&A, we’ll highlight some of our recent research regarding how online storage services are likely to be received by small businesses. The data presented in this report is drawn from a primary research study devoted to understanding the digital storage needs of networked small businesses, with particular focus on the usage of servers and network-attached storage solutions. The survey was launched in December 2005 and queried approximately 1,000 decision makers or influencers at small businesses who have a network deployed.

For the purpose of this study, small businesses were defined as having no more than 20 PCs (whether desktop or laptop). While typically defined by the number of employees, the final sample closely mirrored data from the Small Business Administration (SBA) regarding the distribution of businesses by number of employees.





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