Few enterprises prefer to use on-premise infrastructure because it involves huge CAPEX. Lowering of overall operational efficiency coupled with reduced system performance has further deterred enterprises from going on-premise.
The popularity of cloud computing among SMEs also stems from the fact that businesses can focus on their core activities then be embroiled in issues pertaining to IT. In addition, they can cut IT infrastructure costs and overall operational expenditures.
And a growing number of SMEs are encouraging growth in the Global SME Cloud Market, which is poised to post an impressive CAGR of 20.20 percent from 2014 to 2019.
Growing utility of cloud-based computing is attributed to the following:
- Most SMEs depend on mobile applications to improve their overall businesses, especially retail organizations.
- With the expected increase in the number of SMEs worldwide, especially in the developing countries, the number of cloud-based applications will see a marked increase in enterprise sales.
- Another growing trend in the Cloud Computing market is the increased adoption of cloud collaboration applications.
- Cloud collaboration applications enable enterprise users to share and store files in a centralized server.
- With this, end-users can upload, share, and collaborate on data stored at a central location, thus increasing the reliability and usability of insightful data.
A Competitive Pricing Scenario
As most SMEs face budgetary constraints, they are more calculative in their IT spending than large enterprises.
SMEs are choosing cloud-based services that best fit their requirements and immediate business needs. The costs of different cloud deployment models vary based on the enterprise requirements.
Sensing the opportunity that exists in the SME market, a growing number of local and global vendors are further looking at pricing their offerings competitively.
The prices of cloud-based services are expected to reduce further during the forecast period.
Testing The Water With New Models
Cloud computing has evolved over the years, and cloud-based service providers are bringing application access to enterprises on a pay-as-you-go basis.
Thus, such models ensure that enterprises pay only for the service used and do not incur extra charges. Thus, SMEs are being advantaged with enterprise applications at minimal cost.
They would otherwise end up paying a lot more if they procured licenses for these applications individually.
