Slow Cloud Computing Adoption by SMB & SME in India

With the Technological landscape shift post Internet bubble, major technology company started trying to figure out the innovative approach to reduce the IT TCA & TCO for their client. By 2004 the adoption trend started showing shift and increase business for data centre hosted managed service product portfolio. The virtualization technology brought dynamic shift in network design and deployment which in turned impacted the adoption positively. The growth propelled the datacenter competitor to think out of box to come out with even more exciting proposition. The downturn in 2007-2008 pushed many data centres into a state of closure as the clients reduced their capex and opex model to survive the worst financial crisis. The Private hosting or ownership model got changed into resource utilization based on computing power to remove the ownership cost and increase the return on investment. The concept of cloud computing quickly gained traction across sector and geographies. Many technology service providers started converting their product line to be compatible for cloud computing environment. US and W-Europe again led adoption cycle. The BaaS, IaaS, PaaS, AaaS, SaaS; the form of cloud services got many takers and changed the fortune of many technology companies. The proprietary dominated product line based companies such as Microsoft, SAP, Oracle also approached cloud in big way and remodelled their product offerings accordingly to make it more affordable for broader client base. India also observed shift towards cloud services but with very lower pace. Many companies such as Tatacommunications, Tulip, Sify, Reliance globalcom, Bharti, and many more collaborated with Technology big-wigs to tap the huge revenue opportunity. A country with home of more than 8 Mn SMB & SME approached the concept cautiously as compared to peers in western world. It raises queries regarding the slow adoption. I read many article and most of them raised data protection, security as their top concern. In India, the SMB and SME define; refine their IT roadmap and stresses on localized development to keep the cost under check. Any updates and patches are done based on the organization service area and IT capex/opex allocation. Interestingly, the Indian PSU’s are still struggling to convert their paper based information into digitized form and in turn adopt innovative cloud service offer. In my point of view, the stumbling point in decision making process is the concern regarding data portability. In the absence of proper data portability, SMB & SME won’t be able to reap the benefits of cloud. The second major concern is the accessibility. Major chunk of SMB and SME are located in Tier 2 and Tier 3 cities and connectivity issues as well as cost are the concern for them. India is still witnessing heavy investment to enhance the communication connectivity segment. The data protection, data hosting, data transition route, security, interoperability, SLA and regulatory are some of the major decision making tags due to the recent government. According to NASSCOM report, the total market size of cloud computing in India is $400 Mn and their projection is to reach 16 Bn by 2020. The slow adoption of Cloud in India may impact Indian organization competitiveness in long run and productivity. Technology companies and communication service providers are forging collaboration to push cloud with little success.

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Monday, 26 May 2014 at 01:26:00 GMT-7 delete

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