By Praveena Shenoy
Technology for MSMEs: In today’s dynamic business landscape, small and medium-sized businesses (SMBs) in India are faced with the challenge of achieving business resiliency while grappling with the inflationary impact. However, these challenging times have also presented an opportunity for SMBs to leverage cloud computing as a catalyst for growth and competitiveness. With its scalable infrastructure, cost-effectiveness, and enhanced functionality, cloud technology has transformed the technology game for SMBs, enabling them to rapidly scale and compete with larger businesses. The current inflationary trends have made it imperative for Indian SMBs to spike up their cloud adoption in order to become globally competitive.
Rising Inflation and Cost-Centric Approach
As customers become more cost-centric due to rising inflation, SMBs face increasing pressure to streamline their operations and maximize efficiency. Cloud computing offers a cost-effective solution, allowing SMBs to access world-class technology infrastructure without the burden of heavy upfront investments. By adopting cloud services, SMBs are optimizing their IT budgets and allocating resources strategically, driving operational efficiency and maintaining profitability even in inflationary times.
Cloud Adoption and Business Resiliency
To navigate the uncertainties brought about by inflationary trends, SMBs now are prioritizing business resiliency. Cloud technology provides the agility and flexibility necessary to quickly adapt to changing market conditions. By migrating their core workloads to the cloud, SMBs gain the ability to scale rapidly, streamline operations, and respond swiftly to evolving customer demands. The cloud also enhances data security and disaster recovery capabilities, ensuring business continuity in the face of economic volatility.
According to IDC, in the next five years, Indian SMBs will witness a 20 per cent increase in their IT investments and connectivity services budgets as they turn to technology to compete with larger businesses. Also by 2024, 35 per cent of Indian SMBs will shift one-third of their core workloads to the cloud, driving business agility and future resilience. The impact of cloud computing on India’s GDP is projected to be significant, with estimates suggesting that it will account for 8 per cent of the country’s GDP by 2026. Furthermore, cloud technology has the potential to add $310-380 billion to India’s GDP by the same year.
Also read: Amazon’s AWS launches new programme for SMBs in India to adopt cloud services
Enabling Global Competitiveness
According to NASSCOM, SMBs in India play a pivotal role in the country’s economy, contributing 31 per cent to its GDP and employing approximately 110 million people. To become globally competitive, these SMBs must embrace technology, particularly cloud computing. The cloud empowers SMBs to access advanced technologies, leverage data analytics, and enhance their digital presence, enabling them to compete on a level playing field with larger enterprises. By embracing the cloud, SMBs can improve productivity, accelerate innovation, and expand their market reach, both domestically and internationally.
As SMBs embrace the cloud, they gain access to world-class technology infrastructure, streamline operations, and enhance their ability to adapt to evolving market dynamics. With the potential to contribute significantly to India’s GDP, cloud technology emerges as a key driver of economic growth and transformation. By harnessing the power of the cloud, Indian SMBs can position themselves as global players, driving innovation, and propelling the country’s economic progress.
Praveena Shenoy is the Country Manager at cloud service company Opsio. Views expressed are the author’s own.