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2020 SBEC/TechnoMetrica Small Business Cloud Services Survey Page 1 2020 SBEC/TechnoMetrica Small Business Cloud Services Survey June 2020 70 Hilltop Road, Suite 1001, Ramsey, NJ 07446 Phone: 201.986.1288 www.technometrica.com

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Page 1: 2020 SBEC/TechnoMetrica Small Business Cloud …...2020 SBEC/TechnoMetrica Small Business Cloud Services Survey Page 1 2020 SBEC/TechnoMetrica Small Business Cloud Services Survey

2020 SBEC/TechnoMetrica Small Business Cloud Services Survey Page 1

2020 SBEC/TechnoMetricaSmall Business Cloud Services Survey

June 2020

70 Hilltop Road, Suite 1001, Ramsey, NJ 07446

Phone: 201.986.1288

www.technometrica.com

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2020 SBEC/TechnoMetrica Small Business Cloud Services Survey Page 2

Section Pages

Methodology 3 - 4

Executive Summary 5 - 10

Detailed Findings 11 - 32

Demographics 33 - 39

Table of Contents

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2020 SBEC/TechnoMetrica Small Business Cloud Services Survey Page 3

Methodology

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2020 SBEC/TechnoMetrica Small Business Cloud Services Survey Page 4

Study Methodology

• The SBEC/TechnoMetrica Small Business Survey was conducted online from June 4 to June 5, 2020, using a national

sample of 302 small businesses, with 100 or fewer employees who use cloud services for their business.

• Respondents for the survey came from TechnoMetrica’s network of online panel partners. Survey respondents consisted

of owners, presidents, and other senior-level decision-makers.

• The error estimate for this survey is plus or minus 5.75 percentage points, using a probability sample assumption for the

study’s convenience sample.

• The median employee size for the study sample is 13. The median age of the small businesses taking part in the study is

10 years.

• Geographically, 19 percent of the sample was from the Northeast region, 15 percent from the Midwest, 42 percent from

the South, and 25 percent from the West.

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Executive Summary

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Executive Summary

• Small businesses overwhelmingly rely on cloud services for the continued operation of their businesses, especially amid

the COVID-19 outbreak, according to our survey of small businesses who use cloud computing services.

Top Cloud Computing Activities Among Small Businesses

• Small businesses use cloud computing for a wide array of activities.

• Cloud storage or backup is the most commonly cited cloud computing activity carried out by small businesses, with a

share of 63 percent, followed by email hosting, web hosting, and applications hosting, at 46 percent. Rounding out the

top three was payroll processing, which was selected by close to two in five (28 percent) small businesses.

• Meanwhile, more than one-third (35 percent) use cloud computing for each of the following three activities:

communication and collaboration, video conferencing and webinar services, and invoicing, sales and expense tracking,

and/or reporting.

• Three in ten small businesses utilize cloud computing services for accounting purposes, while 28 percent use them to

perform e-commerce support. Customer engagement rounded out the list, at 22 percent. Just one percent cited other

activities not explicitly listed in the study.

Small Business Cloud Spending

• Small businesses, particularly larger-sized ones, show a willingness to spend on cloud services. Small businesses who use

cloud services report median cloud spending of $324.78 per month. Close to three in ten (28 percent) spend $501 or

more on cloud services or software in a typical month. In fact, more than one in ten (14 percent) spend $1,001 or more

on a monthly basis.

• Median spending on cloud services increases with the size of the company. Small businesses with 51 or more employees

report median monthly cloud spending of $750.50, followed by companies with 21 to 50 employees, at $400.40 , those

with 11 to 21 employees, at $375.50, those with six to ten employees, at $233.44, and businesses that have one to five

employees, at $98.82.

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Executive Summary

Importance of Cloud Services to Small Businesses

• Small businesses overwhelmingly rely on cloud services to operate their core business offering. Around three-quarters

(74 percent) of respondents agree that their core business offering would be unable to operate without the use of cloud

services. Close to one-third (31 percent) agree strongly and more than two in five (42 percent) agree somewhat with this

notion. Meanwhile, just under one-quarter (24 percent) disagree.

• Companies of all sizes widely perceive the importance of cloud services to their core business offering. Small

businesses with 21 to 50 employees (84 percent) are the most likely to agree with the statement, followed by

those with 51 or more employees (74 percent), 11 to 20 employees (71 percent), one to five employees (69

percent), and six to ten employees (67 percent).

• Cloud services are also critical to the operation and competitiveness of small businesses. When asked to rate how

important cloud services are to the operation and competitiveness of their business using a scale of one to ten, the vast

majority rated their importance as either high (37 percent) or very high (34 percent). Close to one in five find cloud

services moderately important to their business’ operation and competitiveness, while just over one in ten rated their

importance as low (eight percent) or very low (three percent).

• Very high connotes a rating of nine or ten, high connotes a rating of seven or eight, moderate connotes a rating of

five or six, low connotes a rating of three or four, and very low connotes a rating of one or two.

Small Business Cloud Spending Amid COVID-19

• Close to two in five (36 percent) small businesses say that they have subscribed to or retained new or additional cloud

software or services since the start of the COVID-19 outbreak, while 56 percent have not.

• Larger small businesses are more likely to have subscribed to or retained new cloud services amid COVID-19. Close

to half (48 percent) of those with 21 to 50 employees and more than two in five (43 percent) companies with 51

or more employees have done this, compared with 40 percent of those with six to ten employees, 27 percent of

those with one to five employees, and 24 percent of those with 11 to 20 employees.

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Executive Summary

• Small businesses utilizing cloud services are split on the question of whether they have been offered extensions or

delayed payments on their monthly cloud subscriptions as a result of the COVID-19 outbreak. Close to two in five (39

percent) say that their cloud service providers have offered them extensions or delayed payments, while 41 percent have

not been offered such relief. Close to one in five (19 percent) are not sure.

• At the same time, a majority (58 percent) of small businesses with 51 or more employees say that they have been

offered extensions or delayed payments on their monthly subscriptions, the largest share of any type of company

by employee size.

Top Benefits of Cloud Computing For Small Businesses

• Small businesses widely perceive the key benefits of cloud computing services, particularly when it comes to cost and

time savings.

• Close to nine in ten (89 percent) small businesses who use cloud services agree that cloud technology saves time and

money. A majority (51 percent) strongly hold this view, while 38 percent agree somewhat.

• More than eight in ten (84 percent) small businesses say that cloud services have improved employee productivity and

collaboration. Two in five (40 percent) strongly perceive this benefit, and 43 percent somewhat perceive it.

• Almost eight in ten (79 percent) agree that cloud services have helped their businesses more effectively communicate

with and/or better manage their customers amid COVID-19. Around one-third (34 percent) feel this way strongly, while

45 percent agree somewhat.

• The cloud has been critical to the survival and operation of small businesses during the COVID-19 outbreak. Around

three-quarters (76 percent) of small businesses say that cloud services have been critical to the survival and operation of

their business during the COVID-19 situation, with 35 percent asserting this view strongly and 41 percent adhering to it

somewhat.

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Executive Summary

• More than seven in ten (73 percent) small businesses find that their company has become more competitive due to

cloud services. Close to three in ten (29 percent) feel this way strongly, and an additional 44 percent somewhat perceive

this.

• Cloud services are playing a key role in the reopening strategies of small businesses. Around two-thirds (67 percent) of

small businesses agree that they are able to reopen more quickly and efficiently from the COVID-19 lockdown as a result

of using cloud services. More than one-quarter (27 percent) strongly agree with this view, while 40 percent agree

somewhat.

• Two-thirds (66 percent) of small businesses agree that they could not operate their business without cloud services.

Cloud Services as Essential Business Tools for Small Businesses

• Small businesses overwhelmingly agree (84 percent) that cloud services are essential tools when it comes to operating

their business. This view is widely held across business segments by employee size.

• Small businesses widely perceive cloud services as being at least equally important as the other business tools they use.

Nearly half (45 percent) consider cloud services to be more important to their business than their other business tools,

while an additional 39 percent find them to be equally important. Just 13 percent say that cloud services are less

important as compared with other business tools.

Potential Benefits of Expensing Cloud Services for Small Businesses

• Expensing cloud services would have a significant impact on small businesses as they move to reopen from the COVID-19

shutdown.

• A majority (51 percent) of small businesses say that a program allowing them to expense their cloud services would help

improve their ability to reopen sooner. Also, close to seven in ten (67 percent) agree that such a program would help

them increase their chances of profitability and survival during the post-COVID-19 recovery period.

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Executive Summary

Small Businesses Support Making Cloud Costs Forgivable Under PPP

• Small businesses widely agree that costs related to cloud services should qualify for loan forgiveness under the Paycheck

Protection Program, or PPP. Almost nine in ten (87 percent) small businesses believe that cloud services are essential to

business operations and, therefore, the costs of these services should be forgivable under PPP. Close to one-half (45

percent) agree strongly with this view, while more than two in five (42 percent) agree somewhat.

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Detailed Findings

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1%

22%

28%

30%

35%

35%

35%

38%

46%

63%

Other

Customer engagement

E-commerce support

Accounting

Invoicing, sales and expense tracking, and/or reporting

Video conferencing and webinar services

Communication and collaboration

Payroll processing

Email hosting, web hosting, applications hosting

Cloud storage or cloud backup

Top Cloud Computing Activities Among Small Businesses

Cloud storage or backup tops the list of the most common cloud computing activities carried out

by small businesses, with close to two-thirds (63 percent) citing this task. Meanwhile, nearly half

(46 percent) of small businesses use cloud computing for email hosting, web hosting, or

applications hosting, followed by payroll processing, at 38 percent. Communication and

collaboration, video conferencing and webinar services, and invoicing, sales and expense

tracking, and/or reporting were each selected by 35 percent of small businesses.

More than six in ten small businesses use cloud computing

services for cloud storage or backup

(Base = All respondents : 302)

Q. For which of the following activities does your small business use cloud computing services?

(Please select all that apply)

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Larger small businesses are more likely than smaller ones to use

cloud computing across most activities

Cloud computing

activitiesOverall 1 to 5 6 to 10 11 to 20 21 to 50 51 or more

Cloud storage or

backup63% 54% 63% 63% 67% 70%

Email hosting, web

hosting, applications

hosting

46% 41% 37% 49% 49% 53%

Payroll processing 38% 19% 47% 44% 40% 54%

Communication and

collaboration35% 31% 33% 37% 46% 32%

Video conferencing

and webinar services35% 24% 33% 24% 48% 45%

Invoicing, sales and

expense tracking,

and/or reporting

35% 29% 43% 37% 33% 39%

Accounting 30% 14% 43% 34% 30% 43%

E-commerce support 28% 27% 30% 15% 29% 35%

Customer

engagement22% 16% 27% 22% 25% 26%

Other 1% 1% 0% 5% 0% 0%

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19%

3%

6%

5%

14%

18%

17%

18%

Not sure

$5,001+

$2,501 to

$5,000

$1,001 to

$2,500

$501 to

$1,000

$251 to

$500

$101 to

$250

Under $100

Monthly Spending on Cloud Services

More than one in ten small businesses spend $1,001 or more

per month on cloud-based services

Median Spending

Per Month

$324.78

Q. Approximately how much does your business spend on cloud services in a typical month?

$750.50

$400.40

$375.50

$233.44

$98.82

$324.78

51 or more

21 to 50

11 to 20

6 to 10

1 to 5

Overall

Median Monthly Spending

By Company Size (employees)

Small businesses spend a median of $324.78 per month on cloud software and services. Close

to three in ten (28 percent) small businesses spend $501 or more on cloud services in a typical

month, with 14 percent spending over $1,000. The largest small businesses report the largest

median monthly cloud spending, at $750.50.

(Base = All respondents : 302)

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Q. Please indicate whether you agree or disagree with the following statement…

32%

35%

32%

37%

26%

31%

42%

49%

39%

30%

44%

42%

18%

11%

20%

17%

19%

17%

4%

3%

5%

10%

11%

7%

4%

2%

5%

7%

1%

3%

51 or more

21 to 50

11 to 20

6 to 10

1 to 5

Overall

Agree/Disagree Statement:

My company’s core business offering would be unable to

operate without the use of cloud services.

Agree strongly Agree somewhat Disagree somewhat Disagree strongly Not sure

Small businesses overwhelmingly depend on cloud services to

operate their core business offering

Agree Disagree

Overall 74% 24%

1 to 5 69% 30%

6 to 10 67% 27%

11 to 20 71% 24%

21 to 50 84% 14%

51 or more 74% 22%

Around three-quarters (74 percent) of small businesses agree that their core business offering

would be unable to operate without cloud services. Close to one-third (31 percent) strongly

agree with this view, while 42 percent agree somewhat. Just under one-quarter (24 percent)

disagree.

(Base = All respondents : 302)

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Around seven in ten small businesses see cloud services as

critical to their operation and competitiveness

Q. Overall, how important are cloud services to the operation and competitiveness of your business? Please

use a scale of 1 to 10, where 1 means not at all important and 10 means extremely important.

43%

37%

32%

27%

29%

34%

36%

40%

37%

50%

31%

37%

14%

19%

20%

17%

19%

18%

4%

3%

7%

0%

17%

8%

3%

0%

2%

7%

4%

3%

51 or more

21 to 50

11 to 20

6 to 10

1 to 5

Overall

Importance of Cloud Services to Business’s Operation and Competitiveness

Very High (9 to 10) High (7 to 8) Moderate (5 to 6) Low (3 to 4) Very Low (1 to 2)

Based on a scale of one to ten, the vast majority of small businesses rated cloud services as

either highly (37 percent) or very highly (34 percent) important to the operation and

competitiveness of their business. Close to one in five (18 percent) find cloud services to be

moderately important, while just over one in ten (11 percent) attach low or very low importance

to the cloud. Cloud services are most critical to small business with 51 or more employees.

(Base = All respondents : 302)

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Nearly two in five small businesses have subscribed to or

retained cloud services amid COVID-19

43%

48%

24%

40%

27%

36%

51 or more

21 to 50

11 to 20

6 to 10

1 to 5

Overall

Subscribed to or Retained

By Company Size (employees)

Q. Have you subscribed to or retained new or additional cloud software or services since the start of the

COVID-19 outbreak, or not?

Yes, have

subscribed

to/retained

cloud software

or services

36%

No, have not

subscribed

to/retained

cloud software

or services

56%

Not sure

8%

Adding and Retaining Cloud Software and Services

During the COVID-19 Outbreak

More than one-third (36 percent) of small business who use cloud services say that they have

subscribed to or retained cloud software or services since the start of the coronavirus

outbreak, while 56 percent have not. Businesses with 21 to 50 employees are the most likely to

have subscribed to or retained cloud services, at 48 percent, followed by those with 51 or

more employees, at 43 percent.

(Base = All respondents : 302)

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Just under two in five small businesses have been offered

extensions or delayed payments on monthly cloud subscriptions

Q. Have your cloud software/service providers offered extensions or delayed payments on your monthly

subscriptions as a result of the COVID-19 outbreak, or not?

58%

46%

24%

37%

28%

39%

28%

33%

44%

40%

56%

41%

14%

21%

32%

23%

16%

19%

51 or more

21 to 50

11 to 20

6 to 10

1 to 5

Overall

Impact of COVID-19 on Monthly Cloud Payments

Yes, have offered extensions/delayed payments No, have not offered extensions/delayed payments Not sure

Amid COVID-19, small businesses are slightly more likely to report not having been offered

extensions or delayed payments from cloud service providers than to report having been offered

such relief, 41 percent to 39 percent. Almost one in five (19 percent) are not sure. The smallest

businesses hold the largest share of those who have not been offered extensions or delayed

payments.

(Base = All respondents : 302)

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Saving time and money (89 percent) is the most widely perceived benefit of cloud services

among small businesses, followed by improved employee productivity and collaboration (84

percent). Nearly eight in ten agree that cloud services have helped their business better

communicate with or manage customers during COVID-19 (79 percent) and have been critical to

the survival and operation of their business amid the outbreak (76 percent).

The cloud delivers a wide array of benefits to small businesses,

particularly in the form of time and money savings

66%67%73%

76%79%

84%89%

I could not

operate my

business without

cloud services

My business is

able to reopen

more quickly and

efficiently

following the

COVID-19

shutdown

My business is

more competitive

due to cloud

services

Critical to the

survival and

operation of my

business during

the COVID-19

situation

Helped my

business more

effectively

communicate with

and/or better

manage my

customers during

COVID-19

Improved

employee

productivity and

collaboration

Saves time and

money

Top Benefits of Cloud Computing for Small Businesses

(Percent Agree)

Q. To what extent do you agree or disagree with this statement…

(Base = All respondents : 302)

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Around nine in ten small businesses agree that cloud

technology saves time and money

Agree

89%

Disagree

7%

Not sure

4%

Agree/Disagree Statement:

Cloud technology saves time and money

4%

4%

3%

38%

51%

Not sure

Disagree strongly

Disagree somewhat

Agree somewhat

Agree strongly

Breakdown By Level of Agreement

Small businesses widely agree that the cloud saves them time and money. A majority (51

percent) strongly agree with this view, while 38 percent agree somewhat. Less than one in ten

either strongly (four percent) or somewhat (three percent) disagree. An additional four percent

are unsure.

Q. To what extent do you agree or disagree with this statement…

(Base = All respondents : 302)

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The vast majority of small businesses have seen improved

employee productivity and collaboration due to cloud services

Agree

84%

Disagree

14%

Not sure

2%

Agree/Disagree Statement:

Cloud services have improved employee

productivity and collaboration

2%

4%

10%

43%

40%

Not sure

Disagree strongly

Disagree somewhat

Agree somewhat

Agree strongly

Breakdown By Level of Agreement

More than eight in ten (84 percent) small businesses agree that cloud services have improved

employee productivity and collaboration. Two in five (40 percent) feel this way strongly and 43

percent agree somewhat. Just 14 percent disagree with this sentiment, while an additional 2

percent were not sure.

Q. To what extent do you agree or disagree with this statement…

(Base = All respondents : 302)

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Cloud services have helped around four in five small businesses

better communicate with or manage customers amid COVID-19

Agree

79%

Disagree

17%

Not sure

4%

Agree/Disagree Statement:

Cloud services have helped my business more effectively

communicate with and/or better manage

my customers during COVID-19

4%

6%

11%

45%

34%

Not sure

Disagree strongly

Disagree somewhat

Agree somewhat

Agree strongly

Breakdown By Level of Agreement

Close to eight in ten (79 percent) small businesses perceive cloud services as having helped

their business more effectively communicate with or better manage their customers during

COVID-19. Just over one-third (34 percent) hold this view strongly, while 45 percent say they

agree somewhat. Less than one in five (17 percent) disagree, and four percent are undecided.

Q. To what extent do you agree or disagree with this statement…

(Base = All respondents : 302)

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Small businesses widely perceive cloud services as critical to the

survival and operation of their company during COVID-19

Agree

76%

Disagree

20%

Not sure

4%

Agree/Disagree Statement:

Cloud services have been critical to the survival and

operation of my business during the COVID-19 situation

4%

9%

12%

41%

35%

Not sure

Disagree strongly

Disagree somewhat

Agree somewhat

Agree strongly

Breakdown By Level of Agreement

Around three-quarters of small businesses agree strongly (35 percent) or somewhat (41

percent) that cloud computing has been critical to the survival and operation of their business

amid COVID-19. Meanwhile, just one in five disagree with this sentiment, either strongly (nine

percent) or somewhat (12 percent). An additional four percent are not sure.

Q. To what extent do you agree or disagree with this statement…

(Base = All respondents : 302)

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Close to three quarters of small businesses agree that cloud

computing makes their business more competitive

Agree

73%

Disagree

22%

Not sure

6%

Agree/Disagree Statement:

My business is more competitive due to cloud services

6%

8%

14%

44%

29%

Not sure

Disagree strongly

Disagree somewhat

Agree somewhat

Agree strongly

Breakdown By Level of Agreement

More than seven in ten (73 percent) small businesses say that their business has become more

competitive due to cloud services, with 29 percent feeling this way strongly and 44 percent

agreeing somewhat. Just over one in five (22 percent) disagree with this notion, and six percent

are unsure.

Q. To what extent do you agree or disagree with this statement…

(Base = All respondents : 302)

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Cloud services are helping nearly seven in ten small businesses

speed up reopening after the coronavirus-induced shutdown

Agree

67%

Disagree

25%

Not sure

8%

Agree/Disagree Statement:

My business is able to reopen more quickly and

efficiently following the COVID-19 shutdown,

because I use cloud services

8%

10%

16%

40%

27%

Not sure

Disagree strongly

Disagree somewhat

Agree somewhat

Agree strongly

Breakdown By Level of Agreement

Around two-thirds (67 percent) of small businesses are able to reopen more quickly and

efficiently from the COVID-19 shutdown as a result of using cloud services. More than one-

quarter (27 percent) strongly perceive this benefit, while two in five feel this way somewhat.

Just one-quarter disagree, while another eight percent are not sure.

Q. To what extent do you agree or disagree with this statement…

(Base = All respondents : 302)

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Two-thirds of small businesses could not operate their business

without the cloud

Agree

66%

Disagree

32%

Not sure

2%

Agree/Disagree Statement:

I could not operate my business without

cloud services

2%

11%

21%

36%

30%

Not sure

Disagree strongly

Disagree somewhat

Agree somewhat

Agree strongly

Breakdown By Level of Agreement

Small businesses largely agree that cloud services are critical to the operation of their business.

Three in ten strongly agree and close to four in ten (36 percent) somewhat agree that they

could not operate their business without cloud services. Just under one-third (32 percent)

disagree with this point of view. An additional two percent are not sure.

Q. To what extent do you agree or disagree with this statement…

(Base = All respondents : 302)

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45%

49%

49%

43%

31%

42%

43%

38%

37%

43%

48%

43%

7%

10%

10%

7%

14%

10%

3%

0%

2%

7%

5%

3%

3%

3%

2%

0%

2%

2%

51 or more

21 to 50

11 to 20

6 to 10

1 to 5

Overall

Agree/Disagree Statement:

Cloud services and software are essential

tools for operating my small business

Agree strongly Agree somewhat Disagree somewhat Disagree strongly Not sure

Small businesses widely view cloud services and software as

essential tools for their business

Agree Disagree

Overall 84% 13%

1 to 5 79% 19%

6 to 10 87% 13%

11 to 20 85% 12%

21 to 50 87% 10%

51 or more 88% 9%

More than eight in ten (84 percent) small businesses agree that cloud services and software

are essential tools for operating their business, with 42 percent saying they agree strongly and

43 percent saying they agree somewhat with the statement. Just 13 percent disagree with this

sentiment, while two percent are unsure.

Q. To what extent do you agree or disagree with this statement…

(Base = All respondents : 302)

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More than eight in ten small businesses say that cloud

computing is at least equally important as other business tools

Q. Generally speaking, how important are cloud services and software to your company, as compared to

other business tools your company uses?

54%

46%

41%

50%

37%

45%

36%

40%

41%

40%

39%

39%

7%

11%

15%

7%

19%

13%

3%

3%

2%

3%

4%

3%

51 or more

21 to 50

11 to 20

6 to 10

1 to 5

Overall

Importance of Cloud Computing as Compared to Other Business Tools

More important Equally important Less important Not sure

Close to half (45 percent) of small businesses believe that cloud services and software are

more important to their company than the other business tools they use, while nearly two in

five (39 percent) say that they are equally important. Just over one in ten (13 percent) find

cloud services to be less important as compared with other business tools.

(Base = All respondents : 302)

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A majority of small businesses say that expensing cloud services

would help their companies reopen sooner

Q. Please indicate whether a program that would allow your business to expense your cloud services would help

improve your ability to perform the following tasks: Reopen your business sooner.

59%

62%

44%

47%

40%

51%

26%

13%

17%

13%

33%

23%

15%

25%

39%

40%

27%

26%

51 or more

21 to 50

11 to 20

6 to 10

1 to 5

Overall

Potential Impact of Expensing Cloud Services on

Business’s Ability to Reopen Sooner

Yes, would help improve No, would not help improve Not sure

More than half (51 percent) of small businesses believe that a program allowing them to

expense cloud services would improve their ability to reopen their business sooner. Less than

one-quarter (23 percent) do not think such a program would help speed up their reopening,

while 26 percent are not sure. Larger small businesses are more likely to perceive the potential

benefit of expensing cloud services when it comes to reopening their business.

(Base = All respondents : 302)

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Small businesses largely agree that expensing cloud services

would help improve their chances of profitability and survival

72%

71%

59%

77%

61%

67%

18%

11%

15%

7%

21%

16%

11%

17%

27%

17%

18%

17%

51 or more

21 to 50

11 to 20

6 to 10

1 to 5

Overall

Potential Impact of Expensing Cloud Services on Business’s Ability to

Increase Their Chances of Profitability and Survival Post-COVID

Yes, would help improve No, would not help improve Not sure

Around two-thirds of small businesses say that being able to expense their cloud services

would help increase their chances of profitability and survival during the post-COVID recovery

period, while just 16 percent disagree. Companies with six to ten employees are the most likely

to perceive such a benefit, at 77 percent.

Q. Please indicate whether a program that would allow your business to expense your cloud services would help

improve your ability to perform the following tasks: Increase your business’s chances of profitability and survival

during the post-COVID-19 recovery period.

(Base = All respondents : 302)

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Small businesses perceive the potential benefits of expensing

cloud services as the COVID-19 lockdown subsides

51%

67%

Reopen the business soonerIncrease the business’s chances of profitability

and survival during the post-COVID recovery

period

Potential Benefits of Expensing Cloud Services

for Small Businesses

(Summary of Yes/No Statements)

A majority of small businesses acknowledge at least one of the potential benefits from being

able to expense their cloud services. The ability to increase the business’s chances of

profitability and survival is the more widely perceived benefit, at 67 percent.

Q. Please indicate whether a program that would allow your business to expense your cloud services would help

improve your ability to perform the following tasks…

(Base = All respondents : 302)

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Q. Do you agree or disagree with this statement… Cloud services are essential to business operations, and

therefore the costs of these services should be considered forgivable under the PPP program, and therefore qualify

for loan forgiveness similar to utilities, rent, and transportation.

43%

52%

39%

40%

46%

45%

45%

43%

41%

43%

39%

42%

5%

2%

5%

7%

6%

5%

3%

2%

2%

0%

2%

2%

4%

2%

12%

10%

6%

6%

51 or more

21 to 50

11 to 20

6 to 10

1 to 5

Overall

Small Businesses Widely Demand That Cloud Costs Qualify

for Loan Forgiveness Under PPP

Agree strongly Agree somewhat Disagree somewhat Disagree strongly Not sure

Small businesses overwhelmingly agree that cloud services are

essential and should qualify for loan forgiveness under PPP

Agree Disagree

Overall 87% 7%

1 to 5 85% 9%

6 to 10 83% 7%

11 to 20 80% 7%

21 to 50 95% 3%

51 or more 88% 8%

Close to nine in ten (87 percent) small businesses believe that cloud services are essential to

business operations and that the costs associated with these services should be considered

forgivable under the Paycheck Protection Program, or PPP. Close to half (45 percent) feel this

way strongly, while 42 percent agree somewhat. This sentiment is widely held regardless of

company size.

(Base = All respondents : 302)

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Demographics

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Job Title

33%

10%9%

47%

OtherVice PresidentPresident/CEOOwner/Partner

Q. What is your job title?

(Base = All respondents : 302)

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Size of Small Business

11%

6%

14%

10%

7%

6%

5%

3%

3%

10%

14%

10%

1

2

3 to 5

6 to 10

11 to 15

16 to 20

21 to 25

26 to 30

31 to 40

41 to 50

51 to 100

More than 100

Q. Including yourself how many people are currently employed by your business?

Median

Employee Size

13

(Base = All respondents : 302)

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Years in Business

52%

13%12%

19%

5%

10 years or more6 to 9 years4 to 5 years1 to 3 yearsLess than a year

Q. How many years has your company been in business?

(Base = All respondents : 302)

Median

Years in Business

10

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Region

25%

42%

15%

19%

WestSouthMidwestNortheast

(Base = All respondents : 302)

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Age

5%

3%

7%

9%10%

13%

19%

10%11%

14%

65 or older60 to 6455 to 5950 to 5445 to 4940 to 4435 to 3930 to 3425 to 2918 to 24

Q. What is your age?

(Base = All respondents : 302)

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Male

37%

Female

63%

Gender

Q. What is your gender?

(Base = All respondents : 302)

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About TechnoMetrica

• Founded in 1992, TechnoMetrica Market Intelligence is a leading market research consultancy dedicated to providing

clients with actionable insights to help drive business growth. TechnoMetrica conducts public opinion research through

its nationally renowned polling division, TechnoMetrica Institute of Policy and Politics, or TIPP. Together with our

polling partner Investor’s Business Daily, TIPP produces the monthly IBD/TIPP Poll, which tracks national indicators for

consumer confidence and presidential approval, based on a survey of around 1,000 U.S. adults. The IBD/TIPP Poll has

been recognized as the most accurate national poll in each of the last four U.S. presidential elections, and was one of

only two polls to correctly predict the outcome of the 2016 general election.

• Contact: Raghavan Mayur

• President of TechnoMetrica

• Address: 70 Hilltop Road, Suite 1001

Ramsey, NJ 07446

• Phone: 800-328-TECH (8324)

201-986-1288

• Cell: 201-803-6491

• Email: [email protected]