Why more SMEs are embracing cloud computing

Rahul Siddhu| Indiatimes

The advent of cloud computing has changed the way IT demands are met. There are some factors which make cloud computing a must for SMEs .

Cloud computing significantly brings down the running cost for an organization . “Cloud computing has emerged as a new era in IT and is at the top of the agenda for every CIO today. SMEs that contribute to 1/3rd of IT investment find cloud computing as a most appealing IT feature. As per a recent study by Zinnov, the cloud computing market in India is estimated at around $400 million and is expected reach $4.5 billion by 2015 and SMEs being the backbone of Indian economy are likely to drive the growth.

Cloud adaptation not only brings down total cost of ownership , lowers risk and promotes innovation, but also offers a protected IT set up with high business continuity and IT talent retention which is most crucial for SMEs today,” says Neeraj Athalye, Head, Cloud Business, SAP India Pvt Ltd.

No maintenance
“Cloud computing not only enables you to access a lot of software and other related services but it also cuts down heavily on your maintenance cost. All you have to do is to pay some varied amount to the cloud service provider, which means that there is nothing which you have to maintain. To avail cloud computing services only a basic computer is required, so that it gets connected to cloud and the rest is taken care of by the host.

You just need to keep your computer up and running. This eventually makes functioning of an organization a hassle-free affair, as far as IT solutions are concerned. All you need is one account with a cloud computing provider, where entire staff can log in and operate,” says Abhishek Tyagi of Perfect Solution.

Luring SMEs
There is perception among SMEs that cloud computing is very expensive and beyond their reach. “Many SMEs which are not based in metropolis still believe that they cannot afford cloud services as it way beyond their budget, whereas to reap the benefits of cloud computing just a couple of hundred dollars are needed.

This lack of awareness is holding back many SMEs to make the most of cloud services,” points out Manmohan Aggarwal of Yebhi.com. He further adds that cloud computing service providers also need to come forward and spread awareness to make SMEs more aware of flexibility of cloud services.

The road ahead
Though cloud computing is picking up and more and more SMEs are coming forward to adopt it, experts do believe that cloud computing providers need to make it more cost effective and at the same time there is need of more awareness on the same.
“Small and medium businesses in India operate in lean environments with limited resources and IT personnel. Due to these limitations, upfront infrastructure investment is a big challenge for the vast base of SMBs and hence they consider cloud infrastructure to enhance competitiveness. The cloud model’s flexible payment model (pay per user per month) makes access to technology affordable for resource-constrained small and medium businesses.

One more significant thing to consider is that the adoption of cloud speeds up the implementation of technology and would help the vast SME base in India to achieve global competitiveness,” states Rajesh Janey, President, EMC India & SAARC. “As for SMEs, they have to come forward and explore the various packages which suit their needs. Believe me, cloud computing is so flexible that it disappoints no one with its price and services,” concludes Abhishek.


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