More small businesses cut costs with shift to the cloud

01/10/2013 | Wall Street Journal, The

Startups and small businesses report trimming thousands of dollars a year from their bottom lines by adopting cloud-based storage solutions that eliminate the need to maintain and manage costly servers. Bill Hipsher, business development director for US Storage Search, says a decision to migrate call center operation and Web hosting offsite cut monthly IT costs by $7,000, which will allow the company to add as many as 40 employees this year. However, some entrepreneurs say security concerns continue to make the cloud a hard sell with some clients. "They're all afraid someone's going to steal their information because they don't understand the cloud," says Los Angeles financial planner Louis Barajas.

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