We know that India has the 3rd largest population of SME companies in APAC. Despite such a large volume, the contribution of SMEs to Indian GDP is a mere 6.2%. Benchmark this with other countries like China where the contribution to GDP is 60% and Indonesia with 23% contribution
The reason for such small contribution among other reasons, could be that a large volume of SMB transaction is in cash and that these transactions never get accounted for in official calculations.
Other reason could be the scale of operation, which remains small.
Both reasons can be addressed via a cloud environment boosted by Government intervention
If, like a public cloud, we can have a GOI cloud, which enables SMBs to leverage storage, communication , automation and CRM benefits (largely SaaS) and makes it mandatory, then a large chunk of productivity and revenues become transparent owing to in built compliance processes.
Most of the SMBs are very small in India in terms of scale and productivity both. Cloud Companies need to collaborate with these SMBs and work on a Profit Sharing mechanism or Make Money With Cloud proposition.
Infact before jumping to how cloud companies should position themselves in India, it would be worthwhile to take a look at various stages of an SMB:
At each growth stage SMBs have diverse challenges that need to be addressed:
1. Startup: Access to capital & skills but more importantly- proof of concept & compliance
2. Growth Phase: Scalability & management as it grows
3. Maturity: Optimization & innovation as it matures- can reap better profits
In a startup phase, SMBs need to deliver service that is compliant and in a way that is most efficient. E.g. imaging a mobile apps company that can leverage cloud to demonstrate a demo mobile app across 2-3 countries simultaneously using licensed software, multimedia communication and is able to include feedback, host final product while being compliant, accessible and unified communication
Similarly in growth phase, an SMB can scale communication and CRM systems on-demand alongwith business continuity
In maturity phase, SMBs can use PaaS to create innovative products that are customized for their needs
In India Government and Cloud companies both need to work together to :
1. Emphasize on Compliance
2. Focus on how cloud can help make money and profitability
3. Create a GOI Cloud or create a way where SMBs can access specific services like credit rating, loans, project report access through a way where these Govt services can be a part of various cloud services and SMBs can be incentivized to be on cloud.
Source Image: mashable.com