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Cloud Computing Boosting SMEs and Start-ups


Is the Cloud Computing market really flourishing in India? Or is it just hype? Well, we dig out the truth for you and unfold ground reality of Cloud computing in India, especially when it comes to the adoption amongst SMEs.

With small and medium enterprises mushrooming all around the country, need for Cloud computing has relatively increased to a certain level. Multiple businesses now show a keen interest in the sector with a view of maturing even further. A few top companies that excel in the field of Cloud computing in India, include: IBM, Cisco, HP, VMware, Wipro, TCS, etc. These firms take care of the IT part for several of their clients and provide Cloud services that not only reduce their IT costs but also equip them with latest technologies.

According to Naveen Mishra, Research Director, Gartner, Public Cloud market was estimated around $600 million in India in 2014 and it is expected to grow to roughly $800 million by 2015. This gives us a sense of growth in the market.

Clearing the doubts hovering over the growth of Cloud market in India, Mishra said, “Cloud in my mind has moved beyond the hype. It is a plateau of productivity, which means that customers are investing in Public Cloud. From that perspective, we see manufacturing as one of the biggest investors in the Public Cloud. SMEs are another set of investors. Then we see Government thinking about Cloud, though in a slightly different way. So, these are some of the biggest sectors in India who are investing in to Public Cloud. And that is why we are talking about aggressive growth rates for 2015.”

At present, Cloud is targeted by various vendors. First, we have some dedicated Public Cloud vendors such as Google, Amazon and, Microsoft, who are trying to make their space in the domain by targeting the Indian market with their portfolio. The second segment is Data centric service companies that have been in the space for a while and they are inventing and building Cloud business portfolio around the needs and requirements of their customers. Next is the IT services companies like HCL, Wipro, TCS. So, broadly these three segments are quite active in India when it comes to Cloud services.

Now, as far as the hype about SMEs adopting Cloud solutions goes, Mishra clears out the air by estimating that SMEs would account from anywhere between 30 percent and 40 percent after Public Cloud revenue at this stage.

The accelerating adoption of Cloud solutions by SMEs is because they are typically not very sophisticated in terms of IT. Mishra explains further, “SMEs would have a small IT team and they are more focused on their core business activities. When they are growing with these challenges, they struggle with maintaining that growth or leading through technology. Now, through Public Cloud, they get a partner who acts as an extended arm of their IT and manages all of the IT show, They get elasticity, plus, what we have also seen in many cases, when they invest in Public Clouds, it helps in reducing their cost of IT.”

Even the start-ups are now more inclined towards availing Cloud services rather than having their detailed IT set-up. However, this really depends on the nature of their business. If the business is very customer centric and if the start-up is into the services industry with customer experience making a difference, then, with Public Cloud, they can scale up and down depending on the kind of load that they have.

Another reason, why start-ups begin with the Public Cloud is because they don’t have to make a huge capital investment. They usually have an access to limited cash and they want to spend it very carefully. From a capital management perspective, it helps them to support the variations in their IT. “It helps them to get a partner who helps them to try the business, from a technology’s stand point,” told Mishra from Gartner.

The negative point and the whole resistance around Cloud would be security. If we have regulations enough that data security can venture, so these challengers can be a plight to an SME as well.

Cloud Computing benefits to SMBs

Cost Reduction: This is the first and foremost benefit of Cloud computing to the Small and Medium Enterprises (SMEs). Every firm produces a massive amount of data from its different segments, be it admin data, policies, surveys, etc. all of it requires to be documented and kept safe. But building up their own technology and software can add a huge cost to the company’s budget. That is when cloud computing enters the picture, saving them from spending a fortune and keeping the data safe and handy. Also, the softwares are updated from time to time, keeping the clients up to date.

Less risk and quick recovery from a disaster: Low risk is one of the most joyed aspects of Cloud services. Here the vendors offer their clients security of data which helps them focus better on strategizing instead of worrying about their plans and proceedings. Filing everything up on paper is not a very bright idea these days and they can be misplaced or rot over the period of time. Letting the Cloud vendors take care of company data not only lessens the IT load, but also ensures quick data recovery incase of a service crash down.

Flexibility: Another advantage of Cloud computing to the small and medium enterprises is the flexibility and portability. Using Cloud services, employees can get a hold on the company data at any time and from anywhere. This helps your business grow and plan better.

Safety of data: Storage is not the only function that Cloud vendors provide with. SMEs look up to the Cloud companies for their security solutions and software. These solutions make sure that your data is backed up and encrypted. This also means that SMEs will not have to spend extra on backing up their data separately. Additionally, the company does not have to spend on in-house data security as it is taken care by the Cloud service provider.

Employees Empowerment: Like we discussed, Cloud offers a certain level of flexibility to the employees by letting them access files and documents by simply logging in using their user ID and password. Cloud services being web-based, gives freedom to the staff members to access their personal development documents. For example, HR Software on Cloud would allow the employees to register their leaves and book holidays in advance.


Binni Rawat

She is a traveller (explorer) by heart and a writer by chance. Her curiosity drove her into writing for tech where she enjoys her role as a product reviewer. Binni holds a degree in Journalism & Mass Communication and loves to explore places whenever free. When she is not writing, you can find her engrossed in a fiction novel or travelling to the mountains.

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