Magazine : 
Indian MSMEs Set to Boost Cloud Spending in 2025
In a significant trend reflecting the evolving landscape of Indian Micro, Small, and Medium Enterprises (MSMEs), a report by global technology company Zoho reveals that 81% of these businesses plan to boost their cloud spending by 2025. This strategic move is aimed at scaling investments across critical areas such as customer relationship management (CRM), financial services, and business intelligence software.
The report identifies several key digital adoption challenges currently faced by MSMEs, including high software costs, budget constraints, tech skill shortages, and integration complexities. Despite these obstacles, the MSME sector in India is poised for growth, with expectations of increasing from 6.3 crore to around 7.5 crore enterprises, underscoring its pivotal role in the country's GDP trajectory.
Praval Singh, VP Marketing and Customer Experience at Zoho, highlighted the importance of MSMEs on this occasion of MSME Day, emphasizing their crucial contribution to the economy. He noted a prevalent need among these businesses for feature-rich and accessible solutions as they navigate expansion challenges.
The survey also revealed that 73% of respondents expressed optimism about their growth prospects in the coming six months. However, concerns persist over economic uncertainties (54%), inflation (44%), and a shortage of skilled labor (33%), shaping the macroeconomic environment in which these enterprises operate.
With a steadfast focus on enhancing digital experiences to drive growth, MSMEs are increasingly relying on IT and cloud solutions. Nearly all surveyed businesses (97%) allocate up to 20% of their revenue to meet their IT and cloud requirements, underscoring the critical role of technology in their operational strategies.
This proactive shift towards cloud adoption reflects MSMEs' commitment to leveraging technology to streamline operations, enhance efficiency, and capitalize on growth opportunities in a competitive market landscape.
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