Which U.S. cities are the most cloud-friendly?

Boston is the cloud-friendliest U.S. city for enterprise organizations, while Washington D.C. tops the list for small and midsized companies. Such are the findings of a recent study [DOC] funded by Microsoft and conducted by 7th Sense Research, aimed at gauging IT decision makers’ opinions and attitudes about cloud-based services throughout 10 major metropolitan areas in the United States.

Beyond where the cloud is gaining traction, the report identifies what types of cloud services are cropping up in enterprise companies, as well as small to midsized organizations. Big winners include email, collaboration, backup and storage, and cloud-based productivity apps. Given that some of these services could replace desktop and server-room offerings from Microsoft, it’s no surprise that the company is interested in which way the winds are blowing the cloud.

How companies are using the cloud Overall, the study found that enterprise companies are further ahead of their small and midsize counterparts in embracing or even considering cloud technologies. Forty one percent of the respondents at large organizations said they had at least one cloud project planned or under way, compared to 16 percent of small businesses. Overall, decision makers at companies of all sizes agreed that the cloud is a strategic engine, not a passing trend — or a threat to IT. More than half of the companies surveyed said they’re hiring as a result of cloud services.

Enterprises companies are looking to the cloud for different uses than small businesses. For example, 14 percent of respondents at small businesses said they are using the cloud for email and communication, and 26 percent plan on following suit. By contrast, 20 of enterprise companies look to the cloud for email and communication, and 42 percent intend to move in that direction.

Meanwhile, only 7 percent of small businesses said they are using cloud-based collaboration tools and 26 percent plan to do so. Twenty-three percent of enterprise respondents are using the cloud for collaboration, and another 41 percent are planning to do the same.

As noted, productivity apps delivered via the cloud are gaining ground at enterprise companies and small businesses: 15 percent of the enterprises said they’re using them, and 45 percent more plan to; 9 percent of small businesses are using cloud apps today, and 30 percent plan to do so.

Storage and backup services delivered via the cloud also have fans in the business world: 10 percent of small businesses said they’re using such services today, and another 29 percent anticipate doing so. Twelve percent of enterprise companies, meanwhile, are using cloud-based storage and backup services, and an additional 46 percent said they will.

Different sizes, different benefits Additionally, enterprise companies and small businesses cited different top benefits from their respective cloud implementations. Among small businesses, 49 percent said their cloud deployments helped boost their bottom line, 45 percent said cloud services yielded better security, and 42 percent they were able to reduce IT workloads. Another 41 percent said cloud services helped to ensure they had the latest versions or upgrades, while 38 percent said the cloud helped them deploy new functions and applications more quickly.

Among the IT decision makers in the enterprise, 47 cited the reduction of IT workloads as a key cloud benefit, 43 percent said their cloud projects helped them deploy new functions and apps more rapidly, 43 percent of respondents also pointed to bottom-line cost savings, and 41 percent praised the cloud for allowing them to scale as their businesses grow and develop. Finally, 36 percent said the cloud let them abandon legacy systems.

The study also ranks cities in terms of their cloud friendliness. The rankings were based on respondents’ answers to questions about their attitudes regarding cloud computing, as well as the number of projects they had under way.

Atlanta Atlanta placed in the middle of the pack of cloud-friendly cities, ranked No. 5 among enterprises and No. 7 among small businesses. According to Microsoft’s analysis of the report, 62 percent of IT decision makers at large companies in Atlanta currently employ or plan to implement cloud-based email and communications tools, such as IM and voice, compared with 36 percent of those at small businesses.

Boston Beantown is the cloud-friendliest city for large organizations, ranked at No. 1; it also holds the No. 5 spot among small businesses, A high percentage of companies in Boston view cloud services as an opportunity to be more innovative and strategic, and 46 percent of large businesses there have one or more cloud projects planned and under way. Further, more than half are already using the cloud for email, communication, and collaboration.

Chicago The Windy City holds the No. 9 spot for cloud friendliness, both for enterprises and small businesses. The winds of change are in the air, though: Half of IT decision makers at large companies in Chicago said they viewed cloud computing as an opportunity to be more strategic. Meanwhile, 39 percent of the small businesses in Chicago said they find the potential cost effectiveness of cloud services encouraging.

Dallas Cloud services are mighty appealing to large companies situated deep in the heart of Texas: Dallas ranks number No. 3 among the cloud-friendliest cities for enterprise organizations. Among small businesses, it holds the respectable No. 6 slot. According to the survey, 46 percent of IT decision makers at large companies in Dallas view the cloud an engine for innovation, 9 percent higher than the national perception. Security was a big selling point for smaller businesses: 46 percent said they were encouraged to embrace cloud services for reliable security, nearly twice the response of enterprise companies.

Detroit Detroit’s standing among cloud-friendly cities isn’t stellar: It landed in last place among large companies in the 10 surveyed regions and at No. 8 among small and midsize companies. Still, nearly half of the decision makers in the Motor City said that the cloud is an engine for innovation, and just over 50 percent of respondents foresee investing in the cloud over the next five years to boost profitability.

Los Angeles/Orange County The cloud is finding a home amid the smog of Southern California, according to the survey, particularly along smaller organizations: Los Angeles and the OC rank fourth for cloud friendliness for small businesses and eighth for large organizations. Overall, 46 percent of respondents said they are investing in cloud services; small businesses cited the benefit of having the latest upgrades always available to them as a draw. Further, they said that focusing on strategic initiatives would reduce IT workloads.

New York Whereas enterprise companies in the Big Apple are embracing cloud services, the small businesses there are thus far about as warm toward them as New Yorkers are to visiting yokels who block the subway turnstiles: New York is ranked No. 2 as the cloud-friendliest city among large organizations and at the bottom of the heap in the 10th spot among small businesses. For some perspective, 46 percent of large companies said they had cloud projects actively under way, whereas only 14 percent of small businesses said the same.

Philadelphia Philly’s small-business community is more keen on the cloud than its large businesses. The city ranks No. 3 for cloud friendliness among small businesses and comes in at No. 7 among large organizations. Interestingly, IT decisions makers at the large companies are more knowledgeable about the cloud: 87 percent of them said they had at least some knowledge about it, compared to 50 percent at small businesses.

San Francisco The City by the Bay is arguably the overall most cloud friendly among the 10 cities covered in the survey: It holds the No. 4 spot for cloud friendliness for enterprises and the No. 2 spot among small and midsize organizations. Additionally, 49 percent of the respondents at large companies in San Francisco said they have at least one cloud project planned or under way, and 40 percent of IT decision makers at local small companies deemed cloud computing an engine of innovation.

Washington, D.C. The nation’s capitol is also the capitol of cloud friendliness for small businesses, according to the survey, holding the No. 1 slot in that category. For enterprise organizations, however, it’s down at No. 6. Businesses that have adopted cloud services in D.C. cite enabling a remote workforce and lowering total cost of ownership as the top reasons for the move. Almost half of IT decision makers at local businesses (46 percent) said they saved at least $1,000 through their use of cloud services.

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