Could the cloud help Britain out of recession?

Friday, 19 February 2010

A raft of economic figures are expected to shed more light on the state of the British economy such as the UK trade figures and the Bank of England’s inflation report, after figures from the Insolvency Service report showed a rise in personal insolvencies where the number of company liquidations fell 1.1 percent on the year to 4,566, personal insolvencies rose 24.9 percent on the year to 35,574.

However, amongst this gloomy result a ray of hope appears as thousands of small businesses across the UK battle to survive in the current tough economic climate through the use of innovative technology to reduce start-up costs and avoid bankruptcy.

As the debate continues as to whether Britain is in recession, there is no doubt that the lion’s share of job creation will come from SMEs. Cloud computing technology – where software and hardware is pooled centrally and made available over the internet – is enabling small and medium-sized businesses across the UK to reduce costs and enhance efficiencies.

“The harsh pressure on start-ups and small businesses remains, as the latest figures from the Insolvency Service reveal,” said “Piers Linney, joint Chief Executive Officer at Outsourcery. “Technology such as cloud computing is providing help to many by doing away with thousands of pounds of costly IT investment in favour of pay-as-you go IT delivered over the cloud for as little as £6 a month, enabling many SMEs to continue trading in these tough times.”

With the UK looking to SMEs to pull it out of recession, it is critical that this important sector finds ways of not only surviving, but growing. In 2009 as a whole, there were 19,077 company liquidations, up 22.8 percent compared with the previous year, and 134,142 people were declared insolvent, around 1 in every 320 adults, up 25.9 percent from 2008.

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