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SMB Cloud spends up 43 pc: study

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CIOL Bureau
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MUMBAI: A report indicated by Krawler Information System shows that Indian SMBs have increased their investment in implementing cloud based enterprise solutions by 43 per cent in 2011.

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The increase in spend on enterprise applications was to be expected with the upturn in economy. However with lessons learnt the hard way over the past few years, they are careful to not go for just any solution. There are reasons beyond the cool sounding terminology for SMBs to prefer cloud over on-premises model, said a press release.

Amongst major challenges those SMBs face are managing IT services and scaling at a rapid rate. While not being a core competency, IT services requires considerable investment of resources and bandwidth to run it smoothly. The role of IT services becomes even more important if the applications are deployed on-premises, leading to constant headaches associated with maintenance, upgrades, downtime etc, the release added.

Limitations on technology could also prove to be a bottleneck when it comes to scaling. What if there are not enough licenses? What would be the training cost to familiarize a new joiner with the custom legacy systems? How should the fluctuations in headcount be accounted for?

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Cloud based applications not only remove all the above hassles - the system is hosted and managed by the vendor or its affiliates - but also provide a simple solution to the "scaling problem", says Shashank Dixit, CEO and Co-Founder at Krawler Information Systems.

He added that the Indian market is maturing and the business owners are looking at implementing solutions that not only solve their problems now but also would be able to handle the changing demands in the future.. this is where SaaS steps in.