Why SME customers are leading in adopting cloud services?

SME customers in India are the toast of the season for cloud service providers. The growing cost of hardware which has in the last one year spooked buyers by an increase in prices by over 20% (which is an outcome of the strong dollar) has made them turn to predictable costs associated with Infrastructure as a Service ( IAAS ) cloud service models.

Cloud Service providers are offering their pool of hardware resources, servers, computing infrastructure, network bandwidth, security on the fly as virtual devices or instances for customers to tap into and pay as per usage instead of investing on expensive hardware and software.

With the competition in the cloud service provider space set to increase with vendors like IBM SoftLayer , Oracle , Amazon investing local resources in sales and support, the future of cloud computing looks bright for Indian SME customers.

With most of the initial acceptance has been on the SAAS – Software as a Service model where customers are buying subscription based software licenses which allow application access by their users through the internet, the real fun begins with the steady adoption of IAAS – Infrastructure as a Service and PAAS – Platform as a Service model where the customers are now choosing their virtual server hardware , computing clients , operating system, storage and other resources by provisioning them from cloud service providers instead of capital purchases.

This very trend is forcing Server, Network, Storage vendors to relook at their strategies as they are now directly competing with the Cloud Service Providers who have bypassed the brand specific buying decision process of their customers and are soon becoming the largest consumer group for homogenous cheap server, networking and storage technology.

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