SME stands for small and medium enterprises. SME is the most important part of the economy of India as there are around 40% of the people employed with some small or medium enterprise for their livelihood. However, the number of people that are attached to SME industry and the share of SME in the GDP are not proportional. The 40% of the work force is only able to generate as much as 17% of the GDP. This deficit can only be covered with the help of cloud based solutions.
It is only the modernization of the various aspects of SMEs can result in the betterment of infrastructure, employment generation and thereby economic growth of the people related to these enterprises. There is a need of the use of latest IT tools such as cloud based solutions to bring this deficit down and help in the economic growth of the country. The main problems of SME lie in the non-usage of adequate IT solutions to their problems and these are discussed below.
They use older technology
Most of the SMEs are using outdated technology for their IT needs and it is due to this reason that their efficiency and productivity is very low. They can use Cloud solutions for standardizing the prices, for providing their customers with continuous online support and for training their staff appropriately. SME industry will start functioning like any other high tech company with the help of Cloud based solutions.
The SMEs can benefit from the OpEx model of Cloud solutions
The SMEs are always fighting to get the finances. Since they are generally started as home-grown businesses they tend to save on many major things and opt for cheaper solutions. This prevents them from making it big. Since, Cloud based solutions can be paid for on monthly basis, it becomes easier for them to take advantage of the modern IT solutions.
The SME industry can become more organized by opting for cloud based solutions
The SMEs are not very organised and their functioning is mostly dependent on methods that are instinctive and reactive. This leads to more loss in businesses. All this can be omitted with the help of cloud based solutions. The newer IT solutions can help the SMEs work in an efficient streamlined manner. The cost of operations also can be brought down by almost 30 % if the SMEs adopt the cutting edge IT solutions in their business.
The simple cloud solutions can remove the fear of technology
The SMEs are small and generally ignorant of the new technology. This instills in them the fear of technology that prevents them from trying out anything new at all. This fear of technology and fear of change can be overcome by the cloud based solutions because these are easy to not only implement but to monitor and track. The solutions come with instructions that can be had in the preferred language of the user. The user friendly model of cloud is what is going to change the future of SMEs in India.
The IT solutions can be accessed without any barriers of any kind
The main problem that remains with the SMEs is that they are spread on a very large area and that too in a very fragmented manner. The prices of one place do not match that other, the weather is entirely different for different regions, the languages have a vast difference depending on the region where the SME is located. All this and much more make it impossible to workout upon a single solution for all. But with Cloud based solutions this problem gets solved instantly. Since there is nothing physical in nature that needs to be delivered or received there is no question of any such physical factors such as weather, intermediaries, suppliers etc. you just need to have a mobile phone and a network for the new system to work from wherever you are.
The best part of the cloud based solution for SME industry is that they are simple. They make the life and the business a simpler thing to handle. All the work is done there and then and you do not need to work overtime to get the registers in order. The solutions are in themselves easy to understand because they come with instructions. Then, the IT solutions are also cost effective; in fact they actually cut down upon your costs. Since you do not have to invest in the hardware and software of any kind the solutions of these kinds turn out to be actually cutting down upon your costs. All such services are given to you by the service provider and save you from the risk of ownership, operation and much more.
You get operator provided secure network where all your data stays away from the prying eyes. The data maintenance and upgrading of the software no longer remains your problem. It is all done by the service provider. All you need to do is keep checking from time to time if all your data is actually backed up and in place.
The SMEs are small businesses and so are their needs. But if they individually buy the IT solutions it will cost them a lot. So it is a wise decision to opt for cloud based solutions that will help you save your money and also get the IT solution that you wanted.
Even if you have a large amount of data in the older system you can get all the data assimilated in the cloud based solution without any problem of any sorts. You can have totally different solutions for each of the teams and then you can appropriately combine them at different stages. In other words the cloud based solutions are here to change your business for good.