18 Percent of India SMBs are Using Fee-Based Cloud Applications

San Jose, CA, May 16, 2012: Techaisle’s recent survey of over 1000 India SMBs across Tier 1, Tier 2, Tier 3, Tier 4 cities shows that 18 percent of SMBs are using at least one fee based cloud application.

Familiarity with the term cloud computing is rising among SMBs, suggesting vendors’ evangelism activities are having some effect in terms of recognition and awareness. However, a good understanding of the benefits of cloud computing varies significantly among the SMBs. More importantly, awareness among channels that serve the SMB segment is limited with pockets of misinformation. Even if the SMBs and channels know about the benefits of cloud computing they still worry about security and data privacy.

CRM type applications are considered important by most SMBs and thus are among the first to be adopted. However, infrastructure related services such as storage are being adopted by SMBs that move from one employee size segment to another or by those SMBs that recently started their business.

Cloud is still too big a terminology for SMBs in India. Even though mid-market businesses have begun to use cloud in large numbers there is still a sense of trepidation. SMBs doubt the capabilities of vendors and channels resulting in a “wait-and-watch” situation.

Channel partners themselves are searching for viable business models and desperately looking for education, training and portfolio of offerings. However, this is predominantly seen within the Tier 1 and Tier 2 cities in India. Only 7 percent of all small businesses mention that channels have approached them for cloud computing as opposed to 45 percent of mid-market businesses.

The survey shows a clear link between channel recommendation and adoption of cloud computing is clear. Before working on channel incentives and offerings there is a strong need for cloud computing vendors to begin an education campaign for channel partners. Without channel participation, scaling adoption in the SMB space is not possible.

“We find that systems integrators and some VARs are the first to move into cloud computing offerings. We believe that non-traditional channels such as telecom companies, aggregators and some retail chains are likely to pay a critical role in cloud computing offerings especially targeting the small business market”, says Gitika Bajaj, Techaisle.

The above data and detailed analysis is available for purchase as a report titled India SMB Cloud Computing Adoption and Trends.

About Techaisle
Techaisle is a global SMB ICT Market Research and Industry Analyst organization delivering forward looking insights and tracking the future of SMBs and Channels. Techaisle conducts surveys with SMBs and channels to understand market trends, opportunities, buying behavior, purchase intent, and IT priorities. Techaisle offers its clients: SMB & Channels focused Syndicated Research, Custom Consulting, Market Forecast and Competitive Intelligence. For more information on Techaisle or its global products/services, please visit www.techaisle.com.