SMBs can take advantage of competition between giants

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Forming the backbone of every country’s economy, small and medium businesses (SMBs) have their own unique thought process and decision-making ways. They use different data points to drive digital transformation and bringing new changes to the business.

This is primarily because SMBs undertake new endeavours when they feel the need for it. Since the cloud plays an important role in digital transformation, SMBs are transitioning to the cloud.

Cloud computing holds promise, not just for large enterprises. On the contrary, it has proven to be one of the breakthrough technologies that are equally, if not more, accessible to small and medium-sized enterprises. This effectively removes entry barriers for small business owners and provides a levelled-playing field to the maximum extent possible.

Cloud computing enables easy access to business applications and data from any part of the world, at any hour and on any device. These services are cost-effective as compared to hosting servers in-house. According to a survey conducted by Gartner, over 60% of SMB owners will take to cloud services for hosting data by the year 2022.

Therefore, there is a huge opportunity lying untapped for cloud providers in SMBs, beyond large enterprises. SMBs are unique in nature and more dynamic than the consumer and big enterprise markets. And many of them are already taking to the cloud for the fulfilment of their requirements and business success.

Cloud for SMBs: Outlook for 2021
In 2021, it is expected that the majority of SMBs will be moving to the cloud. They want to know how cloud services can help them improve their business in an era where software as a service (SaaS) has become predominant and successful.

Some major benefits that cloud can offer to small businesses are:

  1. Reduction in Costs
    For an SMB, SaaS offers cost-effective rates. The nature of cost-reduction will vary depending on whether the solution offered is on-premises or outsourced, but it is sure to bring in a lot of savings.
  2. Flexible Access
    Cloud computing provides flexible access to all employees of an organisation. Upon creating a unique user on cloud solutions, the employee can then access it on the cloud through multiple devices. This way employees can access work from the office, home or even when on the move, be it through their smartphone, laptop or tablet. This also helps enhance the productivity of employees.
  3. Improved Security
    Cloud stores and maintains all data in a central location, whether in a CSP or within the house. This makes it administratively much more convenient to protect a database that is centralised from cyber thefts, as compared to storing data across multiple devices.
  4. Efficiency & Scalability
    Cloud servers centrally store the data and are superior in performance. Additionally, productivity applications and software are operated over the cloud. So, the overall efficiency of the company doesn’t get affected even if the devices become obsolete. Similarly, when an SMB plans to expand its operations, it becomes easier to do over the cloud network. It is also faster and cost-effective. For the purpose of scaling up, all that needs to be done is to create new users over the cloud network.
  5. Remote Work
    Cost-related efficiencies are one of the primary competitive advantages that SMBs offer. As they have a paucity of resources, most small-sized businesses (SMBs) are constantly looking for ways to cut down on extra expenses. Cloud computing solutions are reliable for serving as a seamless platform for remote work for the employees of a company. And SMBs can save huge costs by taking to cloud platforms.

The big giants are competing for a greater market share in the cloud computing space. In this scenario, SMBs can gain big advantages from this competition. They can benefit from the experience of these large enterprises and leverage offers such as free credits, GTM programs and discounts, that come as a package from cloud providers. As OEMs are competing for market shares, the ball is in the SMBs’ court to benefit from this ongoing battle.

Summing Up
In the times to come, SMBs will continue to grow alongside the big giants owing to the benefits that cloud services offer. Digital automation is improving human productivity. And we are witnessing SMBs moving to the cloud every day devoid of any increase in their expenses and without any in-built teams to help them manage the cloud.

(This article is written by RS Maan, MD and Global CRO – Codleo. The views expressed in this article are of the author).

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