Indian SMBs’ Interest in Infrastructure as a Service is on the Rise

Small and medium businesses (SMBs, or companies with up to 999 employees) in India are gradually becoming more aware of and interested in Infrastructure as a Service (IaaS). Data storage/back up, servers and virus protection, spam filtering or other security solutions are the main focus of this increased interest according to a new study from AMI.

“Though nascent, the IaaS market in India is gathering steam. The time is right for vendors and partners to invest in educating India SMBs on the role and usage of cloud services,” says Rati Ghose, Director - Market Insights, at AMI. “IaaS adoption will be driven by several factors. The benefits of using Cloud services will percolate down gradually as the availability of reliable and affordable broadband continues to improve and as service providers continue to feature these services,” Ghose continued.

The ease of usage and maintenance that IaaS offers India SMBs is a huge trigger to adoption. Routine tasks of maintenance such as backups being taken care of by cloud service providers ensure that these SMBs (who on an average have 1.8 full-time internal, dedicated IT professionals) do not have to maintain this type of solution allowing these employees to concentrate on more mission critical issues.

In addition the cloud offers scalability. For most organisations that are starting up, they cannot foresee the exact demand for computing, storage, etc. Most businesses experience peaks and troughs in workloads. “In the course of our deep dive engagements on IaaS,” notes Ghose, “we have met with successful ecommerce businesses that have started their business on the IaaS model a few years back and see no reason to do it any other way. Take the instance of a ticketing portal. They have successfully scaled up their businesses for the past 3 years and met with increasing demand and volume of traffic during festivals, vacations, etc.—a clear cut case of scalability on demand.”

Going forward, in the choice of whether to adopt IaaS or not, the service partner plays a critical role. “Especially in the case of India SMBs,” Ghose continues, “the partners need to be cognisant of the organisation’s business road map and gauge where they can use IaaS in a cost-efficient manner and yield best results.” For any IaaS engagement to be truly successful, the experience, infrastructure and user-friendly approach of the service provider are critical. “For instance,” says Ghose, “for an online travel portal, the slightest downtime on the website may cause loss of business. For business-critical applications, the service provider needs to have the expertise to resolve the issue in a seamless manner.”

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