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State of the Cloud 2024 - Small Businesses

  • Report

  • May 2025
  • Region: Global
  • Frost & Sullivan
  • ID: 6104262

Continuing the Digitalization Journey

Small businesses (10-99 employees) perceive the cloud as essential to success. While they lag behind larger enterprises in technology adoption, they plan to invest in technologies such as AI/ML, cloud, and automation to achieve their business goals. In the 2024 the Global Cloud Decision-Maker survey, small business respondents shared their perceptions, purchase decisions, and plans related to cloud, IT, and AI. Key findings include:
  • AI is considered a strategic investment to help achieve business goals.
  • The percentage of small businesses using public and multi-cloud infrastructure will double by 2026; the percentage using hybrid cloud will triple.
  • Small businesses turn to managed service providers (MSPs) to fill expertise gaps, especially in application development, data migration, and data management.
This report offers small businesses and IT service providers a glimpse of the near future for the cloud and AI markets.

Table of Contents

Research Objectives and Methodology

Respondent Profile - Small Businesses

Key Findings
  • Key Findings
Cloud Adoption is Perceived as Essential to Small Business Success
  • Small Businesses Prioritize Growing Revenue & AI Adoption
  • Hybrid and Multi-cloud are Essential For Business Success
  • Small Businesses Explore all Cloud Types
  • Top Reasons for Deploying Apps in the Public Cloud
  • Security and Costs Pose Challenges
On-Premises Data Centers Remain Integral to Small Business IT Strategies
  • On-Premises Data Center Use Trend Among Small Businesses
  • Small Business Employees Prefer the Familiarity of On-Premises Solutions
Small Businesses Will Slowly Migrate Legacy Apps to Cloud
  • Migrating Workloads to the Cloud
  • Modernization Approaches for Legacy Workloads
Small Businesses Use Third-Party Services to Manage and Optimize their Cloud Environments
  • Third-Party Services to Support Small Business Cloud Strategies
  • Quick Delivery, Efficient Workload Management Top MSP Benefits
Small Businesses Embrace AI
  • Small Businesses Begin their AI Journeys
  • AI Supports Better Operations & Talent Management
  • Small Businesses Deploy Apps Integrated with GenAI
Appendix
  • Growth Opportunities Fuel the Growth Pipeline Engine™
  • Why is it Increasingly Difficult to Grow?
  • The Strategic Imperative 8™
Next Steps
  • Benefits and Impacts of Growth Opportunities
  • Next Steps
  • List of Exhibits
  • Legal Disclaimer