Cloud adoption and its increased usage helped small and medium sized businesses (SMBs) to grow their market reach and increase profits on capital by three times, as per a study by Microsoft and Thought Arbitrage Research Institute (TARI).
Microsoft and TARI surveyed 275 SMBs across 11 cities in India (Bangalore, Chennai, Chandigarh, Coimbatore, Hyderabad, Kolkata, Lucknow, Mumbai, Mysore, NCR, Pune) to find out the social and economic impact of cloud adoption.
Along with increased market reach and profitability, the implementation of cloud in business helped SMBs to improve the employee productivity and operational processes.
Several CEOs in SMBs told that the usage of cloud technology provided them with the flexibility of using technology in the business and helped them get better control over their business.
“The CEOs of these companies have seen the positive value and high impact of cloud technologies in transforming their businesses. The findings of this study reiterate the power of digital transformation,” said Anant Maheshwari, President, Microsoft India. “At Microsoft we are deeply committed to empower every organisation and every individual to achieve more. We are partnering organizations in their unique transformation journeys, with each one contributing to an ecosystem of innovation led growth.”
Key findings of the study:
- SMBs who adopt cloud in their business have more than 75% chances of improving several business metrics within next two years.
- The handiness and flexibility provided by cloud usage can increase the cash flow by up to 308%.
- 96% of SMBs said that cloud technology had positive impact on their operating expenses within two years of adoption.
- 86% SMBs trusted cloud to be a secure platform which lessens the loss of confidential information.
- Cloud helped 94% of SMBs to increase number of skilled employees, with less investment, within two years of cloud adoption.
- SMBs who used cloud computing with government database of MSME (Ministry of Micro, Small and Medium Enterprises) companies grew their profit by 30%, and improved asset utilization by 50%.
SMBs in manufacturing sector lagged behind in adopting the cloud, but highlighted maximum positive impact on their business within next two years of cloud adoption.
The early adopter sectors benefitting from cloud usage were retail, IT/ITeS, education, health and hospitality, Microsoft added.