|[March 21, 2013]
ICT Adoption among India Small and Medium Businesses is Advancing Rapidly
KOLKATA, India --(Business Wire)--
At a time when overall business growth in India has slowed significantly
and the national GDP shows only a marginal rise the India small and
medium business segment (SMBs, 1-999 employees) can be viewed as a
beacon of hope. India SMBs show a 14% year-on-year rise in Information
and Communication Technology (ICT) expenditures and their adoption of
technology is likely to continue to increase. This is a direct result of
their need to utilize ICT tools to overcome nagging business challenges.
An analysis of these markets reveals that SBs are likely to marginally
overtake their MB compatriots vis-à-vis annual ICT spending growth rate.
These findings have emerged from the 2013
India SMB ICT & Cloud Services Tracker Overview study by New
Markets International (AMI) Partners, Inc.
India SMBs are in an expansion and transition mode in terms of
escalation in business and workforce. ICT is likely to play a vital role
in their continued growth. "Basic computing and networking hardware
dominates the IT spending portfolio of India SMBs. This is especially
true for the small business segment which is gradually enhancing their
ICT backbone serving as a platform for future adoption of higher-end
technology solutions", says Dev Chakravarty, Research Manager at
Cloud computing has brought about a paradigm change in the ICT adoption
pattern of SMBs worldwide. India SMBs are no exception to this
statement. "Using AMI's Global
Market Forecast Model, the industry's premier SMB market sizing
tool, AMI has found that expenditures on cloud-computing within India
SMB ICT portfolio are on the rise. These expenditures comprise almost
10% currently and are predicted to increase by a CAGR of 23% over the
next five years", adds Mr. Chakravarty. It may not be an exaggeration to
term cloud computing as a key future growth-enhancer in terms of India
SMB ICT adoption since cloud-based ICT solutions display greater future
growth-trends compared to their on-premise cousins
There are many questions regarding cloud computing usage by India SMBs;
e.g. - What are the larger spend components within the cloud Which
cloud categories will grow faster AMI analysis finds that the top two
spend-components within the SMB cloud-portfolio are for website-related
expenditures and Remotely Managed IT Services (RMITS). These SMBs have
become much more aware of the benefits of hosting their own websites
since it provides them multiple benefits such as better brand-building
and cost-effective marketing to mention just two. A number of
web-hosting firms have emerged to assist India SMBs in this endeavor. As
mentioned RMITS is also an up and coming trend for these companies. Many
India SMBs are indicating a greater preference for this alternative,
sometimes in conjunction with the age-old on-premise service options. In
the near future, IaaS and SaaS (News - Alert)-based solutions such as Productivity, CRM
and Business Intelligence are forecast to show considerable growth.
Cloud computing has been instrumental in alleviating many problems that
India SMBs face during ICT adoption - specifically those related to a
lack of funds and non-availability of a dedicated ICT-workforce. Other
key advantages of the cloud that appeal to SMBs include automatic
updates, flexibility and scalability.
The external environment is also ready to support the migration to the
cloud, with ISPs and Telcos having invested heavily in building an
adequate bandwidth infrastructure. A mature Channel Partner (News - Alert) community of
ISVs and SIs have equipped themselves with relevant cloud computing
tools and techniques enabling them to offer their services to SMBs.
"Future growth opportunity in the arena of more traditional ICT
solutions are somewhat limited," stated Mr. Chakravarty. "Hence, in the
face of stagnation, a significant proportion of channel partners have
been adding cloud computing to their product and service lines in a bid
to increase versatility and to meet the rising 'pull' from their SMB
The importance of channel partners cannot be overstated. They represent
the 'Route-To-Market' for India SMBs in terms of ICT procurement.
Moreover, the role of channel partners in cloud computing is further
emphasized by the fact that SMBs require a good deal of hand-holding and
guidance in order to understand what cloud solutions suit their
businesses best. In addition, significant shifts have occurred within
the cloud-partner ecosystem with the advent of new cloud-focused
partners a.k.a. 'Cloud-brokers' who are specialists in the arena of
facilitating cloud computing transactions between buyers and sellers.
AMI's recently published "2013
India SMB ICT & Cloud Services Tracker Overview" provides
marketing and product executives the insights to effectively
enhance/tweak their go-to-market approach within India SMBs for a
greater bottom line impact.
The study examines India SMBs' business needs, including ICT priorities,
purchase channel preferences and buying behavior at a granular level.
The analysis also delves into numerous individual ICT categories - both
cloud and on-premise solutions - and provides a clear sense of the
overall market opportunity/outlook for each and the forces shaping that
specific category. Shifts in the India SMB ICT landscape - including
purchase channels - are highlighted and illustrate how vendors can best
leverage those shifts to deliver solutions profitably.
For more information about this study, AMI-Partners, or our global SMB
research, call 212 944 5100, e-mail firstname.lastname@example.org
or visit our web site at www.ami-partners.com.
About Access Markets International (AMI)
AMI-Partners specializes in IT, Internet, telecommunications and
business services strategy, venture capital, and actionable market
intelligence - with a strong focus on global small and medium businesses
(SMBs), and extending into large enterprises and home-based businesses.
AMI-Partners' mission is to empower clients for success with the highest
quality data, business strategy perspectives and ?go-to-market
solutions. Led by Andy Bose, the firm has built a world-class management
team with deep experience cutting across IT, telecommunications and
business services sectors in established and emerging markets.
AMI-Partners has helped shape the go-to-market SMB strategies of more
than 150 leading IT, Internet, telecommunications and business services
companies. The firm is well known for its IT and Internet adoption-based
segmentation of the SMB markets; its annual retainership services based
on global SMB tracking surveys in more than 25 countries; and its
proprietary database of SMBs and SMB channel partners in the Americas,
Europe and Asia-Pacific. The firm invests significantly in collecting
survey based information from several thousand SMBs annually, and is
considered the premier source for global SMB trends and analysis.
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