Scaling, Adapting, and Thriving: The Cloud Imperative for Indian SMEs 20 per cent of SMEs have successfully migrated more than half of their workload to Cloud and 51 per cent of SMEs prioritise Cloud for customer support.
Opinions expressed by Entrepreneur contributors are their own.
You're reading Entrepreneur India, an international franchise of Entrepreneur Media.
India's robust economic growth and digital infrastructure are driving a wave of innovation across businesses of all sizes. Particularly, small and medium enterprises (SMEs) are leveraging Cloud technology to unlock their potential, scale operations, and drive the nation's economic progress. Cloud technology has become a critical foundation for India's digital transformation. For SMEs, the Cloud offers cost-effective scalability, enhanced agility, and improved collaboration. It enables businesses to innovate, experiment with new technologies, and gain a competitive edge in the market. As per Tata Tele Business Services SME Digital Insights, Cloud adoption among Indian SMEs is rapidly increasing, with many seeing it as a powerful springboard for growth.
The study highlights that over half of SMEs are utilising Cloud for its affordability and scalability. Customer support and networking applications are the top priorities for Cloud migration, with 51 per cent and 49 per cent of SMEs, respectively, making this transition. Additionally, sectors like retail, logistics, and manufacturing are expanding their Cloud infrastructure to streamline operations and enhance business agility.
Benefits of Cloud for SMEs
The Cloud enables streamlined workflows, automated tasks, and centralised data management for efficient strategic initiatives. By eliminating high cost hardware investments and reducing ongoing maintenance costs, the Cloud offers a flexible financial model that supports growth for SMEs. This means that the organisations can invest in other areas of development.
Apart from cost effectiveness, Cloud infrastructure scales effortlessly, allowing SMEs to adapt quickly to changing market conditions and to seize new opportunities. Unlike traditional security protections, many SMEs view the Cloud as a path to enhanced security compliance. Contrary to popular belief, Cloud solutions provide robust security features and comprehensive data backup capabilities, bolstering the overall security backbone of the organisation. Nearly half (40per cent) of SMEs prioritise enhanced security compliance as the main reason for adopting Cloud, highlighting its strategic role in business decisions. Interestingly, regional alignment is strong with Mumbai leading at 55 per cent.
"Cloud technology presents an unparalleled opportunity for businesses to amplify agility, foster collaboration, and gain a decisive competitive edge while enhancing the customer experience. With domain expertise and innovative solutions, we are powering SMEs to harness the transformative power of cloud solutions for sustained success in an increasingly digital world," said Vishal Rally, senior vice president – product and marketing, tata teleservices.
36 per cent of SMEs are prioritising Cloud skilling for their future Cloud usage plans and 48 per cent of SMEs in North and East India are focusing on Cloud skills. Healthcare (33 per cent Big Data, 31 per cent AI) sees promise in improved patient care and faster drug discovery but struggles with data silos and skill gaps. SMEs are actively seeking trusted partners who can assist them in supporting them with their Cloud expansion plans (39 per cent) as well as in attaining Cloud cost-effectiveness (37 per cent).
Prabhu Ram, head of the Industry Intelligence Group (IIG), notes that Indian SMEs are increasingly adopting Cloud technology to enhance their business operations. This transition to the Cloud is driven by its efficiency, reliability, and adaptability, which help streamline operations, promote growth, and improve customer experiences. By embracing Cloud technology, SMEs gain access to advanced tools like AI, enabling them to stay competitive and successful.
Collaborating with trusted experts is crucial for maximising the benefits of Cloud adoption, from improved customer support to innovative solutions. This trend is expected to persist, as SMEs recognize Cloud technology as a competitive advantage and a vital component for building resilience.
MSMEs leveraging technology
75 per cent of small business owners aged 18 - 30 are the most tech-savvy, with over 87 per cent in this demographic using smartphones for their daily business activities and accessing digital content. They are closely followed by those in the 31 - 40 age bracket. Interestingly, 36 per cent of these young entrepreneurs reported earning more than INR 15,000 per month. The pervasive use of smartphones underscores the internet's vital role in bridging infrastructure gaps and fostering technological inclusion among MSMEs at the grassroots level.
Digital devices are primarily used for work, with 36 per cent of respondents spending 4-6 hours on their phones daily. However, for leisure activities like social media or online entertainment, 66 per cent spend less than 3 hours. YouTube is the most preferred app, with 41 per cent using it for social media and 72 per cent for entertainment. Interestingly, 58 per cent of respondents do not have any gaming apps installed on their phones. Read more
