SMB and SME Cloud Adoption in India

The COVID-19 pandemic has severely affected India's small and medium-sized business sector, which is irked by a liquidity crisis, lack of demand, and the absence of alternative trading models.


As the COVID-19 pandemic shook the world, we were completely unprepared for its impact. Business operations came to a standstill as governments across the globe-imposed lockdowns to stop the coronavirus from spreading. And small and medium enterprises suffered the most due to those shutdowns and lockdowns.

SMBs & SMEs – Engines of India’s Economic Growth

Small businesses and enterprises are the backbones of the Indian economy. As of 2019, they accounted for over a third of India’s GDP and employed around 110 million people. These figures make the sector one of the most important ones. However, while SMEs are the engine of economic growth in India, they are also more vulnerable to disruption than their larger partners. It is, therefore, imperative for SMEs to develop a solid business model.

NASSCOM’s Report on Cloud Adoption Trends Among SMBs

NASSCOM published a report analyzing the trends in cloud adoption by small and medium enterprises in India. This analysis included information on application maturity, drivers, application challenges, and SME technology opportunities.

The report shows how small and medium businesses use the cloud of digital transformation as a catalyst for boosting operations. It includes 17 case studies showing how SMEs used the cloud for scaling, from scaling operations to collaboration between widely distributed teams, simplifying the technology architecture, ensuring business continuity and more.

As India is gradually inching towards complete digitalization, businesses of all sizes, be it large, medium, small or micro, are also moving towards advanced technology. And the COVID-19 epidemic has only increased the process of digital transformation across all arms of businesses.

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Small businesses and enterprises are the backbones of the Indian economy. As of 2019, they accounted for over a third of India's GDP and employed around 110 million people.

Cloud computing is a fundamental technology in any digital move, and its adoption can help SMBs and SMEs become:

More flexible in increasing their global competitiveness, and

Better to deal with disorders (such as the current epidemic).

SMBs and SMEs Are Increasingly Adopting the Cloud Tech

More than 60% of the SMBs surveyed by NASSCOM have already adopted the cloud with varying degrees of maturity. As technology-driven segments are on a higher side of adopting cloud computing, Media and Entertainment, Retail, Automotive, Healthcare, and other sectors are also adopting cloud technology overwhelmingly.

COVID-19 has accelerated cloud adoption for small and medium businesses as businesses seek continuity and collaboration in unstable circumstances. Cloud computing is a powerhouse for collaboration and conferencing tools, marketing and security tools, and managed services, thus delivering to businesses and helping them survive.

Aakash Sharma
Aakash Sharma
Aakash writes on Startup Ecosystem, Policies, Legal and Regulatory aspects of business planning. An alum of Delhi University, he is assistant editor at Dutch Uncles.

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