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Only 2 percent of Indian MSMEs are aware of cloud computing: IMRB Report


The research report highlights that Indian MSMEs have many concerns around data security in cloud and that there is an urgent need to create an enabling environment and spread awareness amongst MSMEs on various advantages of cloud adoption
The recently released CII-IMRB joint research paper ‘Adoption of Cloud in MSMEs’ based on survey conducted with 8000 MSMEs across 22 Indian cities, reports that the overall awareness of cloud amongst MSME is only 2 percent. Out of this, the ratio of companies adopting cloud services is just about 4 percent.
It also highlights that the MSMEs look at cloud as an innovative concept and have concerns around data security, especially in businesses like IT/ ITES and BFSI and therefore further enabling environment and awareness needs to be built.


Some of the findings of the study are as follows.


Triggers for adoption of cloud computing


Effective hardware utilization emerges as one of the key reason for adopting cloud computing solutions. This seems to be more prominent among smaller SMEs; this could be because they would like to best use their existing hardware and reduce their bottom line expenses. On demand stability and Device independency is also seen as other critical triggers for adoption of cloud computing.


Areas of business that have been moved to cloud


Manufacturing vertical leading the cloud services adoption. And key functions being outsourced includes sales and marketing perception of cloud computing deferscity-wise and industry verticals. Technical operational data which is non-sensitive in nature is the most common operation that has moved on the cloud. HR related data has also been moved on cloud among MSMEs with 1-10 employees.


Concerns in cloud adoption


Data security is arguably the biggest concern many SMEs have. This becomes more predominant when we look at the SMEs who work on the customer data or have sensitive data that they would not want their competitors to have access to like IT, BFSI, Education or those who may not have dedicated IT personnel.


Five step process for MSMES to adopt Cloud services


Step 1:- Adopt web hosting services available on public vendors
Step 2:- Evaluate the service and vendor for a period of 4-5 Months
Step 3:- Migrate email and collaboration services to public cloud
Step 4:- Evaluate the service provided and vendors
Step 5:- Migrate non-mission critical services to public cloud

Pitfalls to be avoided while choosing a cloud vendor


MSMEs should be careful in choosing the set of cloud vendors. They should go for vendors who offer bundled service – applications that spans across business lines and helps consolidate the IT process in the business.