How Cloud Technology Is Empowering Indian MSMEs
Harjit Singh of Tata Teleservices on cloud technology and its beneficial effects on Indian MSMEs in terms of higher productivity, lower costs, and quicker market responsiveness
Cloud technology is emerging as a powerful catalyst for growth among micro, small and medium enterprises (MSME). By providing access to advanced tools and scalable resources, cloud solutions empower MSMEs to innovate, expand, and compete effectively in today's fast-evolving digital landscape.
A recent 'SME Digital Insights' study revealed that 50 per cent of MSMEs in India are prioritising cloud adoption for expansion in FY2024, with 51 per cent focusing on customer engagement and 40 per cent emphasising security. Additionally, 20 per cent have transitioned over half of their workloads to the cloud, signifying a growing commitment to leveraging digital tools.
Impact on Industry
With cloud technology, MSMEs are not only optimising their current operations but also laying a solid foundation for future growth and success. The financial sector is seeing significant benefits, with small banks using cloud-based analytics to gain deeper insights into customer behaviour and customise their services. These tools enhance risk management, ensure regulatory compliance, and provide a more secure, personalised banking experience. In manufacturing, MSMEs are adopting cloud-based Enterprise Resource Planning (ERP) systems, which integrate production, supply chain, and inventory processes in real-time. This results in increased productivity, lower costs, and quicker market responsiveness.
Cloud technology is transforming healthcare by boosting efficiency and enhancing care delivery. Cloud-based electronic health records (EHR) give healthcare providers instant access to patient data, ensuring continuity of care regardless of location. Telemedicine and secure cloud storage further improve patient experiences, helping smaller healthcare providers remain flexible and efficient in the digital age. Similarly, retail MSMEs are leveraging cloud-based inventory systems to monitor stock in real-time, reducing waste and streamlining operations. By integrating their online and offline channels, these retailers offer a unified shopping experience, staying competitive in an increasingly connected market.
Agility, Security, and Future-Readiness
Cloud technology gives MSMEs affordable access to cutting-edge tools like Artificial Intelligence (AI), Machine Learning (ML), and the Internet of Things (IoT). With a pay-as-you-go model, businesses avoid hefty upfront costs, allowing them to innovate cost-effectively. Incorporating AI and ML into daily operations helps MSMEs boost efficiency, refine processes, and deliver optimised services without stretching their budgets.
Data security is a top priority for MSMEs, and cloud solutions provide the essential protection needed to secure sensitive information. These platforms also enhance business communication and connectivity while ensuring adherence to cybersecurity standards. The scalability of cloud services allows MSMEs to quickly adjust resources based on market demand, making the technology a key driver of growth and adaptability.
MSMEs must overcome challenges like building internal expertise and transitioning from outdated legacy systems to fully unlock the transformative power of cloud technology. Staying ahead of industry trends and forging strategic alliances with trusted cloud providers is crucial to harnessing cloud's full potential. As cloud technology revolutionises business landscapes, MSMEs are poised to seize substantial opportunities. Cloud adoption goes beyond a mere technological upgrade—it's a strategic enabler for innovation, rapid scaling, and gaining a competitive edge in India’s dynamic digital economy. By leveraging cloud's full spectrum of capabilities, MSMEs are not only securing their future but also driving India's economic progress forward.
