When we get out of the tech bubble to check in with the average business, cloud software still has a lot of room to grow.

Only a minority of SMBs (37%) still have adopted cloud software, according to the latest Tech Adoption Index by the Local Search Association.

Every 6 months, the Local Search Association surveys 1,000 small-to-medium businesses to measure adoption of cloud software. The survey includes a representative mix of automotive, retail, professional services, home services, and personal services.

When you break down by department, you see where cloud software is strongest. Cloud software is used by

  • 25% of payroll and human resources,
  • 22% of marketing and advertising solutions,
  • 20% of sales use CRM,
  • 14% of finance and operations, and
  • 10% of the supply chain management

So, why the hesitation? Objections vary by department. For instance, finance departments are concerned about security, whereas most businesses prefer highly customized supply chain software.

But if you had to pick on one word: change. 57% percent of SMBs are happy with their current toolset and don’t want to change. 27% have the mindset of “if it ain’t broke, don’t fix it.” Surprisingly, 14% aren’t even aware that these solutions exists.

Nevertheless, it appears time will melt all icebergs. Of 508 respondents,

  • 27% intend to use cloud for CRM,
  • 17% intend to use cloud for finance and operations,
  • 14% intend to use cloud for payroll and human resources,
  • 14% intend to use cloud for supply chain management, and
  • 13% intend to use cloud for marketing and advertising.

The majority claim they will make these shifts within 6 months. 44% say they will in 6-12 months. And of if they had make a change, 62% claimed they’re prepared to move to the cloud.

Interestingly, 60% would prefer to work with a single provider instead of working on SaaS from multiple sources.

The Local Search Association will update their Tech Adoption Index every 6 months.