Millions of SME’s are not aware of how they could save business energy by using cloud computing, says E.ON.

According to a research by energy provider, E.ON, there are around 90% of SME’s that don’t understand that they could significantly reduce the amount they spend on IT energy by using cloud computing.

Cloud computing is a general term for anything that involves the delivery of computing and storage capacity as a service to a heterogeneous community of end-recipients over the Internet and entrusts these services with a user's data, software and computation over a network and are stored on servers at a remote location such as those involved in online accounting that stores accounting data entered into a network and stored on servers at a remote location.

After questioning SME’s involved in business, finance and property services, the study by E.ON found that most SMEs were not aware of how using cloud technology could reduce business energy costs.

By using cloud technology, businesses are only required to pay for the computing power they use; they can then scale up or down as they need to or preferred, without the need of using any additional servers.

Because there are only fewer machines that are needed, it follows that with cloud computing, it will only consume less electricity and therefore savings can be made. With business electricity prices continue to increase; this is a positive move for many SME’s.

“Energy is a hot topic for UK SMEs and it’s clear they are unaware of the energy saving solutions available to them. By adopting cloud computing, small businesses are in a win-win situation, they will be able to improve their productivity through its flexible approach and will benefit from savings on their IT energy expenditure,” Head of Business Sales at E.ON, Iain Walker said.

Meanwhile, senior policy adviser at the Forum of Private Business, Phil McCabe, said that in the same vein with other green technologies, it is important for business owners to realize that “embracing cloud computing can significantly reduce bottom line costs, as well as their energy footprint. Using the internet rather than physical servers is a flexible and effective way of managing accounts and other paperwork, for example helping businesses to adhere to HM Revenue & Custom’s record-keeping guidelines, sidestepping the aggravation and cost of more traditional business accounting systems”.

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