A new study by Amazon Web Service highlights the benefits of small and medium-sized UK companies transitioning to the cloud to tackle growing social and economic challenges. The report released this week indicated that smaller companies in the UK that embrace cloud technologies can generate up to £6.9 billion in annual productivity gains and generate an additional two million jobs in vital industries like education and health by 2030. The report referred to as “Realising a Cloud-enabled Economy” was delivered by Amazon Web Services (AWS) and explores the possible benefits of moving to the cloud for smaller companies and the social issues that could be addressed.
Delivered in partnership with Accenture, the report applied data from the Organisation for Economic Co-operation and Development (OECD) data on adopting various cloud technologies by country to estimate a cloud-enabled economy in 2030, where 90% of all companies apply cloud technology in some capacity. The results suggest that if cloud adoption levels continue rising at the expected rate, smaller companies could contribute significantly to vital social challenges nationwide. These contributions could include supporting 58 million remote health consultations, enabling over four million students to access online education and supporting nearly two million jobs within the national economy. Cloud-focused smaller companies are also involved with creating solutions to transition the economy towards a more sustainable future and delivering digital finance solutions that help support better financial inclusion and general well-being.
According to the OECD, the UK represents one of the largest cloud technology hubs in Europe, with over 50% of all companies purchasing cloud services. The country has witnessed a rising rate of cloud adoption, but adoption rates of advanced technologies like AI and ML remain relatively low. Approximately 75% of smaller businesses in the new report identified AI and ML as the two technologies they believe will drive the most social impact by 2030. Generative AI is a form of AI that delivers new content and ideas. Generative AI is supported by pre-determined ML models based on huge amounts of data. These models can be applied by smaller companies to strengthen productivity, like supporting medical teams to measure test results and make informed decisions.
Smaller companies using the cloud to digitise their companies represent a vital step towards unlocking multiple economic and social benefits. Cloud-enabled companies are tackling challenges in healthcare within underserved communities, enabling stronger remote access points and improving the monitoring of health conditions. In education, cloud-enabled companies are advancing access to engaging and personalised education routes, strengthening educational performance and decreasing time spent on other activities. By 2030, the report forecasts that 11 million adults will access education through cloud-enabled companies, a 175% increase compared to current figures. The report also suggests that by 2030, around 4 million primary to secondary will have access to online education via cloud-based businesses.
In the financial services industry, cloud-enabled companies provide a secure option for people to access and engage with their banking services, strengthening financial literacy. The report suggests that by 2030, 25% of people will use financial services supported by cloud-enabled smaller businesses. With open banking technology, companies like Snoop that enable users to monitor their bills can explore spending activities and present data to an individual in an accessible form, enabling efficient financial decisions.
The path to a cloud economy requires the integration of business tech and continued support from the government. While the UK has made positive strides, the report emphasises the challenges of adopting cloud solutions for smaller companies, like cyber security concerns, limited access to the necessary infrastructure, and the need for increased digital skills.
The report highlights where smaller companies can adopt internal actions to integrate cloud services and tackle potential challenges. Smaller businesses can accelerate cloud uptake by determining cloud solutions, upskilling employees and providing training. The new study shows that by adopting the cloud, companies can make more impact on communities nationwide. Cloud solutions enable government, educators and industries to combine forces, empowering companies worldwide to transition to the cloud, boost productivity and deliver a more prosperous future.
