Creating value for SMEs, SMBs and startups through innovative digital solutions

By Manoj Dhanda

Technology for MSMEs: The last year has been characterised by the rapid adoption of cloud technology by businesses of all sizes in the tech industry. A survey by Microsoft revealed that 71% of the CEOs of various companies are ready for digital integration and transformation of their businesses. However, it is notable that businesses in the metropolitan cities and areas have been rapaciously embracing Cloud solutions and other tech-back innovations, while smaller enterprises in non-metro cities have been slower in making the transition.

Also Read: The missing link in India’s economic growth

Challenges in Cloud Adoption

The slower adoption rate of SMBs and SMEs to tech-backed innovations is attributed to several factors, including insufficient growth capital, access to high-speed internet, research and selection of appropriate technologies and lack of innovative capacity. Moreover, the business owners in rural and non-metropolitan areas are not familiar with the potential benefits of the integration of cloud solutions and thus, are reluctant to bear the cost. Since the transformation process is still initiated in a top-down approach, the management of the company undergoing such a transformation faces the most pertinent challenge. Therefore, a successful cloud transformation of SMBs and SMEs is incomplete without competent leaders to carry the process out. A tech-savvy team of industry experts must back the management for the technological upgrade to manifest into a sustainable business model.

The Face of Cloud Solutions Today

In recent times, small businesses in non-metropolitan areas are starting to catch up to their counterparts in metropolitan areas regarding cloud adoption. The challenges that made adopting cloud-based solutions and other technological innovations for SMBs and SMEs are being dealt with over time. The penetration of high-speed internet in the non-metropolitan areas has considerably bridged the gap in adopting tech-backed innovations for SMBs and SMEs. Moreover, the general awareness of the potential of Cloud-integrated solutions leading to a boom in the Return on Investment (ROI) of SMBs and SMEs is driving their stakeholders to incorporate tech solutions to further enhance their business models.

Also Read: Government may consider extending the repayment period under ECLGS: FIEO

Conclusion

The development is noticeable, with tier II and tier III proving to be the growth engines in India. Owing to such developments facilitating the digital transformation, we can expect to see the gap between small businesses in non-metro and metro areas continue to close in the coming years.

Manoj Dhanda is the Founder and CTO of Microhost Cloud. Views expressed are the author’s own.