Opportunities and Challenges for SMEs While Industry Consolidates


Cloud Computing and SMEs
Cloud Computing and SMEs
Over the decade there has been a significant evolution in IT and businesses and individual users are seen rapidly adopting the changes in the IT with the objective of realizing the benefits. Cloud Computing is the IT industry’s dream of bringing all the services to one click of the mouse. Its basic idea is to do away with bulky hardware and huge software, replacing them with services those are hosted on clouds that can be accessed when required.

Cloud Computing has rapidly been developing into a more comprehensive way of doing business, and many companies are realizing the tangible benefits that come with cloud computing and this paradigm shift in the way businesses use technology is opening up a whole new world of opportunity for SMEs.

SMEs, who are said to be the lifeblood of any vibrant economy contributing to one-third of IT investment find Cloud Computing as the most appealing IT feature as it can provide a huge cost saving for their business.

In the Cloud Computing environment, the SMEs will not have to own the infrastructure so they can abstain from any capital expenditure and instead utilize the resources as a service and pay as per their usage of the resources provided by the Cloud. Cloud Computing enables the SMEs to automate their business by reducing their investment in IT infrastructure. Cloud based services helps the industries to reduce the cost involved in hardware, software, upgradation, training and licensing costs.

Apart from this the Cloud providers can also provide better security for SMEs as they use highly effective robust hardware and network infrastructure. The perception of the enterprises that cloud computing offers sophisticated services but inadequate security that made them doubtful for entering in to cloud doesn’t hold true anymore because of the elaborate security measures that the cloud providers are adhering to. Almost all the cloud providers are maintaining anonymity of their data centers location as cognizance of data centers location will make them vulnerable to physical attacks.

So, Cloud Computing is suitable for companies of all sizes, mainly for the SMEs. It enables SMEs improve their global competitiveness.

However, the lack of awareness about Cloud Computing amongst the target users is stopping it from gaining popularity. If we compare the Cloud Computing users with the conventional users, we see most of prospective users are unaware of the advantages of Cloud Computing. They are not aware of the portability, affordability, flexibility, feasibility, service quality or security features that Cloud Computing offers.

To have a better understanding on Cloud Computing and to understand how to derive maximum benefit of the technology you can refer to an interesting book on Cloud Computing by Mr. Ashwini Rath.


Please enter your comment!
Please enter your name here