Enabling infra SMEs efficiency

Cloud-based IT solutions are likely to be a game changer over the years to come, as they will provide a level playing field to SMEs and JVs vis-a-vis the big organisations. Satish Pendse explains how cloud-based solutions can be a boon to SMEs in infrastructure sector.

As information technology (IT) gains momentum as a business enabler by providing the competitive edge through efficiency improvement, the need for rugged systems and processes enforce¡able through IT systems is felt by small and medium enterprises (SMEs) and joint ventures (JVs) as well.

Conventional IT vs cloud computing

Conventionally, IT solutions have been available ‘on-premise’, i.e. the companies have to invest upfront to procure hardware, IT product licences and implementation services. Post implementation, they also need to manage these, and need IT manpower for the purpose. However, not all companies prefer this option. For SMEs and JVs, the main concerns with regard to the conventional IT approach include:

• High initial investments for world class IT systems (hardware, software, implementation etc)
• Skilled IT manpower required to support. The same is expensive as well as difficult to retain. Attention gets defocused in that area instead of mainline business issues.
• Internal readiness is low in terms of people and process maturity in terms of adopting the world-class systems. This leads to implementation and susten¡ance risks. The investments at stake are relatively higher especially for the size of the organisation.
• In addition, for JVs which have limited time span, the conventional IT approach is not feasible because of the upfront investments involved.

Due to this, these companies tend to go for quick-fix, low-end IT systems. This may lead to issues and challenges since such systems may have their own set of challenges in terms of bug-free, sustainable functioning and also tend to reach end of life-cycle very fast and businesses may get stuck. It will be in the best interest of these companies if they can directly go for world-class IT systems and reap the same benefits as their peers from large enterprise segment. This will now be possible at affordable rates through cloud computing.

Best practices at affordable price

Cloud computing as a concept has been existent for quite some time and is getting acceptance across globe. From on-demand music, to mobile applications, to emails, to enterprise solutions like ERP, CRM; a number of services are now available on cloud. With IT solutions specifically for infrastructure and real estate industry now available, SMEs will get access to world-class IT solutions and industry best practices in an investment-friendly model. Cloud is a boon to SME sector in this regard. The key business drivers for cloud computing include:

• Substantial reduction in upfront investments – pay-per-user-per-month
• Rapid start û templatised
• Access to global best practices
• Minimal IT manpower for ongoing support
• De-risking
• Level playing field for SMEs segment
• Best suited for JVs (limited life span)

Real estate and infrastructure SMEs and JVs can now look forward to upgrade business processes to world-class levels with the help of cloud computing model. It will also help in quick adoption of world-class IT in an investment-friendly manner, without investing in technical teams to manage the system.

Providing value to business

Cloud computing has potential to offer significant value to business. Cloud-based IT solutions are likely to be a game changer in future, as they will provide a level playing field to SMEs and JVs vis-a-vis the big organisations. With the right IT partners who under¡stand the infrastructure industry, cloud-based solu¡tions will prove to be a boon to SMEs in infrastructure sector.