Effects of Cloud Computing on SMEs in 3rd World Countries

September 12, 2022
Effects of Cloud Computing on SMEs in 3rd World Countries

The telecommunications industry has paid considerable attention to cloud computing while emerging market countries have shown even greater excitement for the technology. Due to the "greenfield" nature of ICT in many countries, "leapfrogging" to cloud computing is conceivable.

Governments throughout the globe have recognised the economic growth promoting the potential of broadband in recent years. A tenfold increase in broadband penetration is associated with a 1.38 percent increase in GDP, as reported by the World Bank.

Access to high-speed Internet has become a top priority for almost every developing country to boost economic growth. Some countries have responded by investing heavily in their network infrastructure and frontline links. According to a global assessment, Broadband network quality has been growing gradually in emerging countries.

On the other hand, in some instances, the expected economic development has not been realised since the investments in content and services were never made.

Even though speeds in emerging markets may be lower than those in industrialised nations, they are fast enough to use the cloud for essential business functions like email and office productivity. According to Cisco's Global Cloud Index, the average fixed-consumer download speed in the Middle East and Africa is 1,691 kbps and 795 kbps, respectively.

Intermediate cloud applications such as customer relationship management (CRM), enterprise resource planning (ERP), and introductory video conferencing are available in Egypt, South Africa, and the United Arab Emirates, for example.

A cloud architecture "unlocks" the potential of networks by making it quicker and cheaper to produce and distribute locally and regionally focused applications and information.

Many private and public organisations see great potential in cloud computing.

Cloud computing is the model of acquiring and paying for IT resources and applications on a subscription basis.

Using the cloud can help large enterprises in emerging countries address three significant challenges: a) a dearth of qualified IT people, b) budgetary constraints, and c) security risks. In light of these and other challenges inherent to business in emerging nations, the cloud will become increasingly important to many stakeholders in these contexts.

According to research by Cisco, chief information officers believe businesses can improve data security by outsourcing data management to the cloud. The survey showed that twelve percent of workloads worldwide would be cloud-based in 2013.

Compared to the 29% of CIOs in France and 24% of CIOs in the UK who said they would use cloud computing, 50% of CIOs in India, 43% of CIOs in Brazil, and 40% of CIOs in Mexico said the same thing in the 2011 Cisco Connected World Technology Report.

There is a growing interest among developing countries in using cloud computing to meet the needs of their citizens. Cloud computing allows for standardised services to be rolled out from a central location, improving the quality of life for a country's population. The widespread use of cloud services also makes it easier for governments to provide services to large populations.

Small and Medium-Sized Businesses' Bright Future in the Cloud

Cloud computing, says Cisco IBSG, is poised to alter the small and medium-sized business landscape significantly. When it comes to expanding their economies, small and medium-sized companies (SMBs) play a pivotal role. Compared to the 15 million small businesses in the United States, there are a whopping 195 million in Brazil, Russia, India, and China.

About US$600 billion of India's yearly economic output is attributable to small and medium-sized businesses (SMEs). More than 90% of output in Africa is attributed to small enterprises, a statistic that is consistent with many developing nations, according to the United Nations Conference on Trade and Development (UNCTAD).

In a thriving economy, the little firms serve as the cradles for the giants of tomorrow and the catalysts for breakthroughs in technology. The use of electronic media and communication systems (ICT) is low among SMBs in developing countries. In India, for example, SMBs spend just 30% of all ICT money.

Thus, technology provides a significant lot of untapped potential to increase efficacy. Due to its mobility and agility, cloud computing makes this feasible. Even computers with little processing power can use the cloud. If business owners don't have access to a personal computer, they may always utilise a public terminal or stop by an Internet cafe. Since smartphones are widely used in many parts of the world, cloud applications that can be managed only from a mobile device may also gain traction.

Small and medium-sized businesses (SMBs) in developed countries will rely substantially on cloud applications over the next five years to handle their communications and business operations, as shown by the Cisco 2010 SMB Cloud Watch Survey findings.

The impact will be magnified in poor nations where many small businesses lack the resources to adopt ICT and/or the know-how to employ what is available effectively. Many companies will take their first technical steps thanks to on-demand application services.

The Cloud: Fueling the Expansion of Small and Medium-Sized Businesses

Small and medium-sized businesses (SMEs) may function more efficiently with the cloud and its integrated universal applications for things like messaging and scheduling as well as customer, inventory, accounting, invoicing, and human resource administration.

As a bonus, "baskets" of industry-specific cloud applications may be able to tempt whole business ecosystems (communities of interest). For example, a social network of textile producers throughout the country may be formed using a software as a service (SaaS) basket, improving the efficiency of national textile production and markets; Fair for Fabrics and Clothing in Istanbul.

The Apparel Exporter Association of Turkey (ITKIB) is considering this option. If policymakers and regulators can foster an environment where the cloud flourishes, it has the potential to be a crucial facilitator of small and medium-sized company growth, which may have far-reaching consequences on economic development in emerging nations.

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It's time to get started with cloud computing at Netooze costs as little as $4.95 per month. You can draw up blueprints and build and renovate with Netooze Cloud. Netooze Cloud allows you to build apps faster, make better business decisions, and connect with people all over the world.

Netooze® is a cloud platform, offering services from data centers globally. When developers can use the straightforward, economical cloud that they love, businesses expand more quickly. With predictable pricing, thorough documentation, and scalability to support business growth at any stage, Netooze® has the cloud computing services you need. Startups, enterprises, and government agencies can use Netooze® to lower costs, become more agile, and innovate faster.

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