Do MSMEs really need Cloud for expansion?


The primary objective of small and mid-sized businesses is to how to become big. They try to focus on sales and acquiring new clients with many crucial departments get easily overlooked. The need of the cloud can be further understood by imaging an incident where a talented interior design met a potential client and they discussed an interesting project on designs and layouts. Her ideas were nearly compelling and she wanted to demonstrate her recent works. Unfortunately, she did not have the samples at hand so she promised to get back to the prospective client. But by the time she travelled back to her hometown and sent the designs, the client had changed their mind and got another more experienced interior designing firm. SMEs are normally interested in outsourcing their IT requirements in order to be able to focus more on their core business. The MSME environment is highly competitive, pressures to keep up with the competition, providing a means to enhance growth, managing changes, promoting services to customers, and staying competitive, enhancing innovation abilities have forced SMEs to adopt technologies .This makes cloud computing an attractive option for SMEs in making it part of the company’s infrastructure. Also, Cloud computing is not just limited to technology and technical infrastructure but it also reflects a new way in which IT can be used more strategically in business value creating . Cloud Computing for MSME could bring a significant advantage in cost reduction, depending on the type of Cloud services being deployed and the overall management and maintenance costs may also be reduced. Cloud has many benefits in business. Cloud significantly simplifies the software upgrades and adding new software applications which allows an easier and faster potential expansion for the business and resources. It is easier to administrate and maintain and it allows the organization to have global access regardless of their physical location.

 SMEs frequently lack of resources to invest in technologies due to their size and because of this they struggle to gain competitiveness and productivity in the market  operations and maintenance which are the important components of ICT is taken care by the cloud provider. This reduces the burden on the SMEs to be equipped with technical knowledge. So MSMEs can focus on their core business. In today’s business world with the amount of economic downturn and loss happening every day, the need of reliable, yet affordable technology is needed more than ever, cloud computing fills that void, Especially in small businesses, cloud computing is an excellent technological tool that can benefit the business. Organizations quickly shift to the Internet to increase their potential business opportunities For start-up businesses, Cloud Computing may be an attractive opportunity to reduce the cost of ownership of technology hosted solutions. Moreover, Cloud services can save companies money on hardware expenses along with the number of employees they should hire and this is ultimately beneficial for new (small) businesses which are trying to get started .Cloud computing helps the companies to avoid capital expenditure, create scalability systems, flexibility and creating new business models. Cloud Computing is conducting to a new era where enterprises will become virtual. Organizations will manage complex ecosystems of Cloud providers, IT suppliers and business process outsourcers as well as a host of other parties, both internal and external. The cost benefits are the main key for executives but executives today are also seeing the Cloud as a way to gain access to innovative, with the potential to transform the business .Cloud computing is more ideal for SMEs as their adopting will help SMEs to gain a competitive advantage over their competitors. It increases the reliability, performance, scalability, innovation and reduces the time to market. one of the major advantage of cloud computing is that it significantly reduces the running cost for an organisation. 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. There is a huge saving of money by using cloud technology as the industries have to pay only for the operating cost.

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