Demand for cloud storage options is growing among SMBs, and is set to for the foreseeable future, with all-cloud and hybrid options to the fore. Resellers have an important role to play to help SMBs to get the right solutions for their needs. Data creation is going growing by huge amounts; globally it is projected to grow to more than 180 zettabytes over the next five years by 2025, according to Statista.
This explosion in data creation is being driven by businesses large and small, which means that storage is of critical importance, and cloud storage is an increasingly popular solution for small- and medium-sized businesses (SMBs)
“For context, 180 zettabytes would be about 90 trillion hours of 4K video, and that would take you 10 billion years to watch it,” says John Bradshaw, director of cloud computing technology and strategy EMEA at Akamai.
“As SMBs grow, so do their data storage needs, often straining limited in-house IT resources. Cloud storage is increasingly popular because it provides a flexible, scalable solution that adapts to their needs without requiring hefty upfront investments in infrastructure. It eliminates the hassle of managing hardware, maintenance and dedicated staffing, making it a cost-effective choice that allows SMBs to focus on their core business instead of getting bogged down by capacity planning and IT overhead.”
Driving factors
There are other factors driving the increase in demand for cloud storage among SMBs. “The drive toward digitalisation, remote working and more sophisticated data management has accelerated this shift,” says Becky Stables of Catalyst-ERP. “SMBs are seeking ways to move away from traditional on-premise storage, which can be expensive to maintain and lacks the flexibility of cloud options. Cloud storage solutions offer a dynamic, scalable way for SMBs to manage their data more effectively while maintaining operational agility. This trend will likely continue as businesses focus on improving efficiency and keeping costs predictable.”
Ian Stretton, presales solution architect, Infinity Group, adds that demand was kickstarted by the pandemic. “Many businesses had to adapt to the hybrid working model and find solutions that provide their staff remote access to files and data,” he says.
“However, as the benefits of cloud storage have become better known, it has risen in popularity. With many SMBs focused on carefully managing costs in today’s landscape, cloud storage offers a flexible option that eliminates the need for maintenance and hardware costs. It also reduces the need for in-house staff to manage on-premises storage, which is ideal as many businesses face IT skills shortages.”
Kobi Hunn, solutions engineering manager at Distology, adds that over the past five years they have seen an increase in SMBs transitioning away from on-premise storage to cloud-based solutions such as AWS S3 bucks and Microsoft’s Azure Blob storage. “NAS (Network Attached Storage), SAN (Storage Area Network) and Data Centres have been the standard for an organisations,” he says. “But with the increase in costs to host, power and maintain the hardware, IT teams are looking to move to cloud-based solutions.”
Chanel Patrick, functional lead – UK Sales at IONOS, adds that cloud storage demand is increasing as it means that companies don’t need to set up their own data centre and resources can be scaled according to the demand. “SMBs tend to turn to web services that are hosted by a single provider, benefiting from economies of scale, as well as the ability to size their capacities quickly, easily and dynamically,” she says.
Ben Voce, cloud presales lead at Exertis, says the surge in interest in cloud storage stems from the increased use of AI tools, such as Microsoft’s Copilot. “This has led to an unprecedented amount of content creation,” he says. “Consequently, storage requirements have grown significantly.”
All-cloud options
Some SMBs are looking for cloud-only storage options. For instance, Chanel says that for SMB users, establishing an IT infrastructure would be costly and requires continuous support and maintenance from dedicated staff, which is often out of the picture for SMBs. “Since this is traditionally difficult to achieve, companies tend to buy new hardware in set cycles based on an estimate of their future needs, which often leads to more resources being purchased than are needed – hence why a cloud-based solution would be appropriate for SMBs,” she says.
“It also allows companies to access data remotely, with the only requirement being access to the internet. This means SMB employees and owners can work and build their businesses from any location, knowing their data with be stored securely.”
Becky adds that fully cloud-based solutions aren’t always appropriate for every SMB. “Businesses with complex compliance requirements or those that need ultra-low latency for certain operations may find that a hybrid model works better for them,” she says. “Resellers should carefully assess each client’s needs to ensure the solution aligns with their business objectives.”
Hybrid favoured
So while some SMBs are considering fully cloud-based solutions, a significant number are favouring a hybrid approach, blending cloud and on-premise solutions. “The decision largely depends on the nature of the business, its existing IT infrastructure and specific requirements such as regulatory compliance or the need for low-latency applications,” says Becky.
“Some businesses prefer to keep certain sensitive data on-premise, particularly in industries like finance or healthcare, while leveraging the cloud for other tasks like backup, collaboration and scalability. Flexibility is key, and the hybrid model provides a balance between retaining control over critical data and benefiting from the cloud’s accessibility.”
Ian agrees that while cloud-only solutions offer many benefits, such as scalability and flexibility, some SMBs have concerns about aspects like data privacy, security and compliance,” he says. “Some SMBs may also find applications or data they hold require on-premises storage due to performance or latency requirements.
“By embracing a hybrid approach, SMBs can control their critical applications and data through on-premises storage while placing their non-critical applications and data into the cloud for improved cost-effectiveness and accessibility. And this approach can be tailored to their specific IT needs.”
Chris Shaw, UKI&SA country channel manager at AvePoint, agrees. “A hybrid approach allows SMBs to maintain control over sensitive data while using the cloud for less critical data and applications,” he says.
Andy Brown, technical services director, UK & Ireland, TD SYNNEX, adds that for most businesses – large or small – it’s desirable to have some critical data stored on-premises. “That may be due to the sensitive nature of the information, industry regulation, concerns over security, or simply because they feel more comfortable that way,” he says.
“With the large volumes of data now being retained and analysed, it makes a lot of sense to have a tiered storage structure, with the data to which you need fast access kept close to the point of delivery and larger volumes of data that may be required less often kept in secondary or tertiary resources.
“Exactly where those resources are should not matter to the user. From a reseller perspective, there is an opportunity to provide effective management and orchestration of storage resources, and I think we will see more opportunities emerging.”
Chanel says a hybrid cloud structure means data will be spread across more than one service, allowing companies to run certain workloads in different locations, whether across private or public clouds. “This means there is a much lower risk that your company will lose data or be unable to operate in the event of a cyberattack or server outage, as ‘not all of your eggs are in one basket’,” she says.
“Cloud bursting is another option SMBs are considering. It’s a cloud computing technology that allows users to expand and reduce cloud resources as needed and is predominantly used by businesses using a private cloud and an on-site data centre. It is great for businesses that go through periods of high demand where internal computing capacity can quickly reach its limit. Cloud bursting allows internal resources to be expanded using external cloud capacity from third parties for a limited time, and when needed, without having to invest in costly on-site IT systems.”
Ben adds that Microsoft 365 is a prevalent service among SMBs that comes with some cloud storage. “However, as businesses exceed these storage limits, they often purchase additional cloud storage,” he says. “In such scenarios, businesses are exploring various types of cloud storage for archiving older, less frequently accessed data to reduce costs. On-premise storage is still necessary for businesses with existing infrastructure, and its capacity is also increasing to accommodate the growing data volumes.”
Reseller conversations
Resellers play a crucial role in helping SMBs navigate the cloud storage landscape. Chris says that resellers should emphasise the benefits of scalability, cost savings and improved security. “They should also highlight the flexibility of hybrid solutions and the importance of choosing a solution that aligns with the customer’s specific needs and regulatory requirements,” he says.
Ian adds that the security implications of cloud storage should be discussed, especially given the rising threat of cyberattacks. “Cloud storage typically offers robust security features such as encryption, access controls and regular backups, while cloud providers often have comprehensive disaster recovery plans in place to ensure data protection,” he says. “This is something we find clients often have not considered.
“Clients should also be aware of potential challenges such as bandwidth limitations and performance issues, particularly if they rely on large data transfers or have high-performance demands. Resellers should discuss how to optimise cloud storage to meet these needs, including strategies for reducing latency and improving accessibility.
“While cloud storage is often cost-effective, clients need to be informed of potential hidden costs, such as data egress fees, ongoing maintenance and the need for advanced security tools. Resellers can help clients understand the full cost picture and make informed decisions based on their specific requirements.
“Another potential challenge clients may face is vendor lock-in, where it can become difficult or costly to switch providers once data is stored in the cloud. Resellers should highlight the importance of planning for flexibility and portability, ensuring clients can adapt to changing needs without excessive costs.”
With security, Kobi adds that resellers should be aware of the shared responsibility model. “Considering that the CSP are responsible for the availability of the service, but it’s down to the customer to ensure it kept secure and configured correctly. This is where resellers can also provide support and security consultancy.”
Chanel agrees that resellers should make sure SMB customers are aware of the potential security risks including cloud hardware failure, user errors and third-party attacks, as well as how to best prevent these.
“To achieve a high level of security and convenience, it is not enough to only have robust protection mechanisms in place for the software and hardware being used,” she says. “Cloud security also involves responsible data handling and making all attempts at accessing the cloud or cloud service as secure as possible. Preventive measures for potential failures and data recovery features also belong to an effective cloud security package.”
John says that resellers should also emphasise the ease of integration with existing on-premise or other cloud-based systems. “This can simplify workflows and reduce the complexity of IT management,” he says. “Discussing features like automated backups, version control and the ability to access data remotely from any device is crucial, as these capabilities can greatly enhance productivity and collaboration – especially valuable in today’s mobile and remote working environment. This approach can help SMBs see the full picture of how cloud storage can support their growth and operational needs.”
Ben adds that resellers should understand the plans and applications of the business. “If a business plans to upgrade and transition to a cloud model, this should be considered when sizing storage solutions,” he says.
Future
It is expected that in the next 12-18 months demand for cloud storage solutions will continue to increase and more SMBs will adopt them. “Cloud storage will become even more integral as businesses increase their reliance on remote working and digital tools,” says Becky. “Hybrid models will remain popular, particularly for those businesses that require a blend of cloud and on-premise capabilities, but fully cloud-based storage will gain traction as confidence in the cloud’s security and reliability grows.
“For resellers, this presents a major opportunity. By providing tailored advice and reliable solutions, resellers can help SMBs navigate their cloud storage journey and capitalise on the numerous benefits cloud offers. Staying up to date with the latest cloud developments and understanding SMB pain points will be key to driving success in this evolving market.”
Ian says that he expects to see the shift towards hybrid and multi-cloud strategies becoming more prevalent. “SMBs are realising that a one-size-fits-all approach may not be sufficient, and they are looking for more tailored solutions that combine on-premises, public and private cloud options.
“Security will indeed be a key focus, but rather than just adopting more robust measures, we expect to see a greater emphasis on security integration within cloud environments. This includes better end-to-end encryption, zero-trust models and improved threat detection mechanisms. SMBs will seek cloud providers who can offer security as part of their core service, rather than as an add-on.”
Chris adds that ongoing digital transformation and increasing reliance on data-driven decision making will continue to drive the adoption of cloud storage. “As cloud providers continue to enhance their offerings and address the specific needs of SMBs, the shift towards cloud storage is likely to accelerate.”
Ben adds that with the increasing use of AI tools like Copilot for Microsoft 365, cloud technology will be adopted at an even faster pace. “SMBs are keen to leverage AI to enhance their processes and efficiencies, and cloud storage is the ideal platform to support this evolution,” he says.
John notes that recent advancements in cloud technology, particularly the integration of AI and machine learning, are elevating the value of cloud storage. “For example, hyperscalers are expanding their database offerings with AI-driven features that enable automated data management and real-time analytics,” he says. “These innovations allow SMBs to do more than just store data, they can also extract valuable insights, identify trends, predict customer behaviour and optimise operations, which adds significant value beyond simple storage.
“The next 12-18 months present an exciting opportunity for SMBs to embrace the power of cloud storage and take their businesses to new heights. As technology continues to advance, SMBs have the chance to harness cutting-edge tools that were once only available to large enterprises. By leveraging the latest in AI, machine learning and enhanced security features, a business can not only keep pace with the demands of a data-driven world but also unlock new possibilities for growth, innovation and success.”
