SMEs, small and medium sized enterprises are the ones in particular that will benefit from the advent of Cloud Computing in terms of lower cost, increased efficiency and enhanced access to global market. It has been rightly said as a great leveller of economic and social inclusion reflecting the sharp impact that innovations like personal computer and the internet have on the livelihood and lives of a hundred thousand pan nations. Leveraging this new technology requires educating on fostering the conditions for all businesses from large to small sectors. Besides these, on a much larger scale, governments across the region can play a major role to ensure that the cloud computing meets its potential.
Despite the uncertainty that looms over the global economy, SMEs mainly in the Asia pacific region have contributed significantly to the economic sustainability. That’s why Asia Pacific remains poised for a continued growth. It is the performance and positioning of small and medium-sized enterprises (SMEs) in this region that constitute over 95% of businesses and successfully generate over more than half of the employment and GDP contribution anywhere between 30-60%. While the variations are vast in the contributions and composition of SMEs across regional economies, the out-and-out number of businesses alone makes them a huge potential source of further growth, when enabled with the right inducements and technologies.
Though the numbers seem impressive the majority of the SMEs suffer from undercapitalized, underserved and underdeveloped resources in terms of technology tools and human capital that is required for running the businesses. Cloud computing has changed the game, offering SMEs the opportunity to rope-in applications and development platforms at an enterprise-level without the blended above-board capital expense or intricate technology roll-out. Models based on utility especially the utility-based model of computing is beneficial for SMEs, not only from a cost control point of view, but also to permitting them to work with services on a smaller scale at first before ramping up into full fledged deployment. By doing so the entry barriers to adoption of computing is significantly reduced. Applications hosted in the cloud environment also ensure business continuity because of the inherent characteristic of redundancy of data storage and possible data loss in an event of a disaster, a tough lesson we have admonished several times in recent months.
Recent research highlights that the adoption rate of computing by SMEs is unhurried despite the potential for cloud computing being evident. For sake a Microsoft sponsored Springboard survey affirms that while more and more Asian businesses are entwining cloud services, SMEs are dawdling behind their enterprise cousins. That is, around 62% of organisations having PCs more than 500 have either implemented or are planning to implement the cloud infrastructure. Contrariwise, 68% of firms with less than 50 PCs have no plans to implement the cloud infrastructure.
Hence efforts should be made to advance the potential for the cloud across the region, especially for SMEs. The effort should be in terms of fostering the right framework both regulatory and policy that will definitely augment confidence, trust and certainty to vendors and customers.
About Guest Author: Nikhil Agrawal is a Web Consultant and Entrepreneur with substantial experience in building online businesses and developing web applications. He also specializes in Consulting and Strategies for web infrastructure and VPS technologies.