Do Small Businesses Realize the Benefits of Cloud Hosting?

A recent survey conducted by internal resources at Rackspace show that medium sized businesses are reaping more of the benefits of cloud hosting while most small businesses are missing out.  According to the survey, 57% of medium sizes businesses in the U.S. claim to be aware of cloud hosting with 53% echoing the same sentiments in the U.K.  The survey hints that smaller companies are either confused about the advantages of cloud hosting or not familiar with the technology in general.  Although more organizations have come to realize the benefits, it looks as if this critical business segment is still in the dark.

Lew Moorman, Chief Strategy Officer at Rackspace Hosting, notes that he is surprised more small businesses are not taking advantage of the cloud services currently available.  Moorman says that while relatively new, cloud is a proven technology with the ability to suit the needs of businesses of all sizes.  Even more surprising is that nearly 60% of the survey respondents in the both the U.S. and U.K. reported having no plans to utilize cloud hosting in the future.

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Executives at Rackspace believe most small businesses are shying away from the technology because they don’t completely understand the benefits it offers over traditional hosting solutions.  While all that might be true, another reason small organizations may be eluding the cloud is because they feel it is a cost prohibitive solution.  After all, new technologies often are.  If small businesses knew there was a way to enjoy scalability and cost efficiency, they would probably be more intrigued by the concept of cloud hosting.  Ironically enough, Rackspace has the answer with its hybrid hosting solution.

The Rackspace Cloud

Rackspace’s hybrid hosting solution is compromised is three core elements:

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Cloud Sites – As the company’s flagship cloud solution, Cloud Sites offer a scalable platform designed for supporting huge traffic spikes on a pay as you go basis.  The environment is cross-platform, compatible with both Linux and Windows systems.

Cloud Files – This is Rackspace’s web-based storage service that provides developers with instant access to an enterprise-class infrastructure that improves scalability.  Through its partnership with Limelight Networks, Rackspace gives developers the ability to distribute content to millions of users across the world all while reducing upfront investment and IT-related costs.  This service comes with an industry leading SLA and competitive pricing model with storage starting from $0.15 per GB and bandwidth from $0.22 per GB.

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Cloud Servers – The latest in Rackspace’s cloud hosting solution, Cloud Servers is set to provide server capacity to businesses of all sizes at their request.  This solution will leverage powerful technology developed by Slicehost, a company Rackspace recently acquired.  Known for its Xen virtualization software, Slicehost will stay on for the project and develop new innovative features in conjunction with the creative initiatives of Rackspace.

Rackspace is a global leader in web hosting solutions.  Aside from its cloud technology, the provider also specializes in managed dedicated servers and email hosting.  The company is well known for its award-winning Fanatical Support and recognized by Fortune Magazine as one of the best 100 companies to work for in the U.S.

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