Indian SMBs can account for 30% share of India’s public cloud market: NASSCOM Report

The COVID-19 pandemic has severely impacted the SMB segment and they have struggled with liquidity crunch, lack of demand and lack of an alternative operational model.

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Cloud adoption has helped customers see benefits across costs, productivity, reduced complexity and faster query resolution; customers have seen 20-25% increase in productive gains and 15-20% of operational cost reduction.
NEW DELHI: As the country continues embracing the shift towards digitalisation, businesses (large, medium, small, micro) also continue to be disrupted by advanced technologies and COVID-19 pandemic. The latter has fast-tracked digital transformation of companies across all verticals.

National Association of Software and Services Companies (NASSCOM) report, ‘SMB Cloud Adoption in India: Towards a Cloud First nation’, showcases how SMBs are at the cusp of digital transformation with cloud adoption as the catalyst. SMBs are the backbone of India’s economy. In FY2019, they accounted for $952 billion in revenue which translates to 34% share in GDP and employed 110 million people, second only to agriculture. This makes India the second largest amongst the BRICS nations in terms of SMB contribution to GDP and employment.

The COVID-19 pandemic has severely impacted the SMB segment and they have struggled with liquidity crunch, lack of demand and lack of an alternative operational model. However, according to the report findings, SMBs that have an online presence have shown greater resilience and are expected to see short-term revenue gain.


Technology adoption can help SMBs become more resilient and better equipped to handle disruption and also enhance their global competitiveness. And cloud computing is one of three fundamental technologies in this journey (the other two being big data analytics and cybersecurity).

In a statement, Debjani Ghosh, President, NASSCOM, said, “As India aims to become a cloud-first nation and with the government’s push for cloud adoption by MSMEs, it will be crucial for SMBs in India to think of themselves as Digital Enterprises and lead the E-revolution for India.”

Over 60% of surveyed SMBs have already adopted cloud, though with varying degree of maturity. While technology-first segments lead in cloud adoption followed by BFSI, media and entertainment, retail, automotive, healthcare and manufacturing are emerging verticals for adoption.
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COVID-19 has accelerated cloud adoption for SMBs also as they seek business continuity and collaboration in a distributed environment. This is driving demand for collaboration & conferencing tools, marketing and security tools as well as managed services.

Cloud adoption has helped customers see benefits across costs, productivity, reduced complexity and faster query resolution; customers have seen 20-25% increase in productive gains and 15-20% of operational cost reduction.

Enabling business continuity, improved collaboration, a shift from offline to online as the primary channel of engagement with clients, cost-effectiveness, managing security with the increase in cyber-attacks especially during remote working are leading drivers of cloud adoption by SMBs.
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