Cloud Computing A Staircase For Smes To Reach Cloud 9 Or Just Another Technology Platform

So, why are all the SMEs in the growth phase, not embracing information technology in a big way

? Either they are not aware of its usefulness, or they are unable to find appropriate technology for their use or they are not ready to make good use of available or they simply can"t afford IT solutions on offer. First reason doesn"t seem to be too strong a reason, as most of the young entrepreneurs are internet and technology savvy and they generally have good knowledge about latest happenings in IT sector. Second reason can be taken care of as there are many IT companies ready to educate them and offer customized products to suit their needs. In today"s world no company is could grow by ignoring the use of IT, so third reason also doesn"t seem to be much of a deterrent. Affordability can be an issue, because having robust IT systems and process pays in long term but it doesn"t provide benefits instantaneously. SMEs with not so stable and strong client base, fluctuating cash flows and uncertain growth trajectory, find it difficult to invest in IT systems due to cash crunch and also because they do not want to increase their fixed costs too much.

HP along with telecom giant Bharti has decided to address this fourth reason and in the process make a buck or two for itself. They are contemplating; in fact they are working on providing cloud computing to SMEs. Cloud computing is sharing of resources such as hardware, software and information on demand through internet. SaaS (software as a service), which is offering software as service which works on pay per use model and where applications and software are accessed over internet and not owned by users is an example of cloud computing. This HP-Bharti initiative aims at providing cutting edge software applications to SMBs in healthcare, hospitality and other service sectors on a subscription or pay per use basis. According to initial reports, HP-Bharti will provide back end infrastructure and the delivery mechanism, whereas front end applications and services will be provided through partnerships with established players like Microsoft as well as by independent software vendors. In fact in January this year, HP and Microsoft had announced that they will jointly invest $250 million to roll out cloud services, and in December last year HP had launched CaaS (communication as a service) to enable telecom players to offer their products and services to SMBs on pay per use and subscription basis. With these initiatives HP has made it clear that it has a eye on the SMB market which is accountable for nearly 30% of the domestic IT spend and also that it is ready to make investments to making to gain leadership position in providing technology solution to SBMs. HP believes that in the next few years around 60% of the IT applications used by SMBs will be shared among each other.

For SMBs, this is a huge development as they will be able to reduce their risk and liability of one time capital investment to roll out a new service. It will help them in freeing capital for funding their operations which otherwise would have gone into developing their IT applications. In addition to this, it will make them bolder in offering new services to their customers as cost of rolling out a new service will not be prohibitive. They will be able to use applications like pay roll processing and employee attendance maintenance which will be available on pay per transactions basis. In a nutshell, this will be a great opportunity for SMBs to embrace technology in a big way to achieve and maintain high growth trajectory. If the government can do its bit by subsiding use of such shared services or fund development and deployment of cloud computing, we can definitely look forward to the time when SMBs with the help of affordable IT services will be making a great contribution to our national economy.

by: www.365businessdays.com

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