Cloud Adoption By MSMEs in India - CII Panel Discussion - Oct 2021
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This document provides an overview of cloud adoption among MSMEs in India. It notes that MSMEs are critical to the Indian economy, employing over 120 million people. The COVID-19 pandemic created challenges like uncertainty and working capital issues for many MSMEs. However, cloud computing provides opportunities to address issues like data security, costs, and collaboration. The document outlines the business case for cloud adoption and best practices for MSMEs to successfully adopt cloud technologies like data storage, applications, and payments in a phased manner. Widespread cloud adoption could help MSMEs improve productivity and costs while gaining insights to stay competitive.
Cloud Adoption By MSMEs in India - CII Panel Discussion - Oct 2021
- 1. Overview of Cloud Adoption By MSMEs in India Sudhir Swamy Sr. Strategy Consultant PROMAG Consultancy Services CII Bangalore – IT Panel Discussion 8 October 2021
- 2. Indian MSME sector is the backbone of the national economic structure • 63.4 million units across India • 6.11% of the manufacturing GDP and • 24.63% of the GDP from services • 33.4% of India's manufacturing output. • Employ 120 million persons • 45% of the overall exports from India. • Growth rate of over 10%. • 20% of the MSMEs based out of rural areas Approx. 8 Lakh SMEs in Karnataka Source: CII 2
- 3. What has changed for MSMEs after March 2020? Key Challenges • Rise of uncertainty • Where are the customers? • Retaining people • Working capital and funding • Supply chain and inventory issues • Staying competitive In our estimate, at least 20-25% of MSME units in Karnataka will not restart their factories – KASSIA, July 2021 3
- 4. What has changed for MSMEs after March 2020? Opportunities • Recovering economy in India and overseas • Multi-channel GTM approach • Delivery of products and services • Hiring, WFH and Hybrid working • Supply chain planning • Financial discipline and cost reduction As a result of COVID, more than 60 per cent of the Indian organisations plan to leverage Cloud platforms for digital innovation – IDC Survey, 2020 4
- 5. What is Cloud Computing? • Cloud computing is the on-demand availability of computer system resources, especially data storage and computing power, without direct active management by the user • Examples: • Amazon Web Services (AWS) • Microsoft Azure • Google Cloud Platform 5
- 6. What is Cloud Computing?...2 Categories Entry point for most MSMEs - Email - Data storage & backups - Business applications - Payments - Tax and regulatory Source: Lucid Chart 6
- 7. Reasons why MSMEs should adopt cloud computing • Data security • Potential cost reduction • Scalability and Mobility • Disaster recovery • Insights • Increased collaboration Best in class SMBs that adopted cloud have been able to drive 25-30% productivity improvement and 15-20% reduction in operational costs – NASSCOM 2020 Study 7
- 8. Best practices for cloud adoption by MSMEs 1. Understand the Cloud business case 2. Develop a Cloud adoption strategy – prioritize and start small 3. Work out the financial impact – onetime and recurring 4. Manage change in the organization – educate employees 5. Develop a cloud security policy 6. Consult with a professional Cloud Service Provider to maximize benefits 8
- 9. In conclusion… • MSMEs are the backbone of the Indian economy • COVID has impacted MSMEs significantly in the last 12-16 months • A recovering economy is creating never before opportunities • Adoption of Cloud Computing can help MSMEs stay competitive • Management support is key to maximize the benefits of Cloud adoption 9
- 10. THANK YOU 10 Contact: Email – sudhir.swamy@promagconsult.in Phone - +91-9902178001 Website – sudhir.swamy@promagconsult.in