Cloud computing must remain at the centre of business strategies to combat the challenges associated with rising costs, according to computing firm Qubic.

SMEs point to IT as a major capital expense in their businesses but according to Qubic, it is possible to reduce the financial burden without cutting down on innovative technology.

Investing in cloud computing technology – where software and hardware is pooled centrally and made available over the internet – will enable small and medium-sized businesses across the UK to reduce costs and enhance efficiencies.

The Office for National Statistics released figures showing that the CPI measure of inflation eased to 2.5% yet the Insolvency Service published figures showing that the number of businesses going into receivership and administration rose by 1.5%. 

This outlook gives a mixed picture of the UK economic landscape however, one thing which is certain is that thousands of small businesses across the UK can avoid falling into administration by using innovative technology to reduce start-up costs and avoid bankruptcy.

Chris Papa, managing director of Qubic, said: “There is always pressure on start-ups and small businesses to establish themselves and the only way this can be done is if they have sufficient access to leading technology that enables them to break ground without breaking the bank. Technology such as cloud computing can provide small businesses with access to high tech IT infrastructure without actually investing huge amounts of money purchasing the equipment.

“By cutting costs at this level, small businesses and start-ups could help Britain out of recession by driving job creation. Focusing on becoming more efficient can give businesses the extra resources to invest elsewhere in their business so that they can grow.”