Indian Micro, Small & Medium Enterprises (MSMEs) are gearing up to significantly ramp up their investment in cloud solutions. According to a recent survey, 81 per cent of surveyed MSMEs expressed their intention to increase their cloud spending in 2025.
The survey revealed that 97 per cent of respondents allocate up to 20 per cent of their revenue towards IT and cloud needs, reflecting a strategic alignment with technological advancements.
It also highlighted varying perspectives among MSMEs based on their scale and turnover. While 49 per cent of micro enterprises with turnovers less than Rs 5 crore expressed a desire to reduce their cloud spending next year, 44 per cent of medium-sized enterprises, with turnovers ranging between Rs 100 crore and Rs 250 crore, indicated plans to increase their cloud expenditure for 2025.
As the focus of MSMEs on DX becomes stronger, they are increasingly turning to IT infrastructure management and Customer Relationship Management (CRM) solutions to streamline operations and bolster customer management capabilities.
The Zoho survey findings further pointed to challenges hindering digital adoption among MSMEs, including high software costs, budgetary constraints, and a shortage of tech skills. Despite these obstacles, a strong majority of MSMEs remain optimistic about their growth prospects in the coming months, with 73 per cent expressing confidence in their future expansion despite macroeconomic concerns such as economic uncertainty and inflation.
Looking ahead, MSMEs are expected to focus on enhancing their digital capabilities across critical areas such as financial services, cybersecurity, and business intelligence. With 72 per cent of businesses reporting time savings and 71 per cent citing revenue increases post-implementation of CRM solutions, there is a clear trend towards leveraging technology to drive efficiency and decision-making capabilities.
