50% of Indian SMEs prioritize Cloud for Business Expansion in FY2024: Study

Driven by India's accelerating digital landscape, small and medium enterprises (SMEs) are increasingly utilizing cloud technology to gain a competitive edge. A recent 'SME Digital Insights' study by Tata Tele Business Services (TTBS) and Cyber Media Research (CMR) reveals that 58% of SMEs across the country consider themselves highly digitally mature and leading the digital transformation. In FY2024, an impressive 50% of the surveyed SMEs are using cloud solutions to expand their businesses.

The SME Digital Insights study provides invaluable insights into Cloud adoption trends among Indian SMEs," stated Vishal Rally, Senior Vice President – Product and Marketing, at Tata Teleservices. “This study resonates with our business pulse, affirming that cloud technology presents an unparalleled opportunity for businesses to amplify agility, foster collaboration, and gain a decisive competitive edge while enhancing the customer experience. With domain expertise and innovative solutions, we are powering SMEs to harnessing the transformative power of cloud solutions for sustained success in an increasingly digital world.”

According to Prabhu Ram, Head- of Industry Intelligence Group (IIG), Cyber Media Research (CMR), “Indian small and medium enterprises are rapidly leaning in on Cloud, leveraging its efficiency, reliability, and adaptability to transform their businesses. The shift to Cloud is enabling SMEs to streamline their operations, fuel their growth, and deliver exceptional customer experiences. Cloud adoption unlocks access to cutting-edge advancements like AI, empowering SMEs to compete and thrive. Partnering with trusted experts is key to maximizing the Cloud's potential, from enhanced customer support to innovative solutions. This momentum towards Cloud is expected to continue, with SMEs recognizing it as a competitive  differentiator and a key factor in building resilience.”

Key Highlights from the SME Digital Insights study:

Public Cloud Dominates: More than half (52%) of SMEs benefit from the scalability and affordability of the Public Cloud. Nearly one in five SMEs (20%) have migrated over 50% of their workload to the cloud. Additionally, 51% of SMEs nationwide prioritize cloud solutions for customer support.

• Security First: A Key Driver for Cloud Adoption Among SMEs. Nearly 40% of SMEs prioritize enhanced security compliance as their main reason for adopting cloud technology, underscoring its strategic importance in business decisions. Notably, regional alignment is strong, with Mumbai leading at 55%.
• Futureproofing with Cloud Skills: 36% of SMEs are focusing on cloud skill development for their future cloud usage plans. In North and East India, 48% of SMEs are emphasizing cloud skills.
• Varied Adoption of Emerging Technologies by SMEs: The healthcare sector (33% Big Data, 31% AI) sees potential in improved patient care and faster drug discovery but faces challenges with data silos and skill gaps. The IT/ITES sector leads in AI/ML adoption (35%) for innovation, while the BFSI sector (37% Big Data) utilizes data analytics for insights.
• Partnerships Power Cloud Success: SMEs are actively seeking trusted partners to support their cloud expansion plans (39%) and achieve cloud cost-effectiveness (37%).