Small businesses in India that use cloud-enabled technologies could unlock up to ₹1.6 trillion in annual productivity gains and support 45.9 million jobs across sectors like healthcare, education, and agriculture by 2030, representing 9% of total jobs in India, according to a new report by Accenture.
Micro, small, and medium enterprises (MSMEs) are a major driver of economic performance, collectively accounting for about 99% of all firms, 70% of jobs, and about 60% of Gross Domestic Product (GDP) on average across developed economies, according to the Organization for Economic Co-operation and Development (OECD).
Commissioned by Amazon Web Services (AWS), the Accenture report titled “Realizing a Cloud-enabled Economy: How Cloud Drives Economic and Societal Impact Through Small Businesses,” points out that cloud technology has also democratized advanced technologies supported by it, such as artificial intelligence (AI) and machine learning (ML), allowing MSMEs access to tools previously accessible only to large enterprises with the scale to develop them internally. By 2030, Accenture expects the use of cloud computing by MSMEs “to become increasingly ubiquitous, advanced, and mature”.
India’s current rate of at least basic cloud adoption for all businesses, such as the use of web-based email services or cloud-based storage solutions, stands at 28%, according to the report. It underscores, though, that there are greater opportunities to unlock with the adoption of intermediate applications like the use of customer relationship management (CRM) or enterprise resource planning (ERP) tools, and advanced applications such as the use of AI, including generative AI, and ML tailored for sophisticated tasks including fraud detection or supply chain forecasting.
Benefits
By moving to the cloud, for instance, small businesses (defined as those companies with less than 250 employees), can facilitate remote medical consultations, improve access to education, enhance precision agriculture, and more, which contribute to achieving the United Nations’ Sustainable Development Goals (UN SDGs).
According to the Accenture societal impact survey, by 2030 one in five businesses are expected to be using services provided by cloud-enabled MSMEs to directly address their climate and sustainability objectives, such as through energy or emissions monitoring and reduction, while 15% of cloud-enabled MSMEs providing services to achieve sustainability goals are expected to be supporting smart cities.
In the agriculture sector, cloud-enabled small businesses help with addressing food shortage problems by implementing data-driven practices through cloud technologies such as AI. The report estimates small businesses in India can help unlock ₹1.1 trillion in annual productivity benefits in agriculture, and one in nine farms will use precision agriculture solutions that enhance productivity by 2030, representing a 300% increase compared to the current usage rate.
In the healthcare sector, cloud-enabled small businesses help with addressing the challenge of limited access to healthcare faced by underserved communities. The report estimates cloud-enabled small businesses can help unlock ₹199.5 billion in annual productivity benefits in healthcare and support 47 million telehealth consultations in India by 2030.
In the education sector, cloud-enabled small businesses help with addressing the challenge of accessibility and inclusivity of education through digital platforms. The report estimates these small businesses can help unlock ₹291.6 billion in annual productivity benefits in education and provide 99 million students in India with e-learning solutions by 2030, which is 165% more than the current usage rate. The report also highlights 248 million adults are expected to access education resources via cloud-enabled small businesses.
Cases in Point
For instance, as part of its programmes to helps startups manage costs, get technical expertise, and access training and business mentorship, AWS provides small businesses with a starter pack of cloud credits of up to $83,500 over 12 months, resources, and support from its partners, and to help them start digitising in the cloud.
Areete, for instance, has developed technology to help dairy farmers solve their problems such as low milk yield, missed reproduction cycles, and high medical expenses on cattle management. Using AWS IoT and database technologies, Areete has developed a serverless cloud-native solution called “Ayushman Cowfit,” which provides farmers with regular multilingual alerts and notifications about their cattle health, leading to higher quality diary yields.
Rocket Learning, an edtech non-profit, provides early childhood education to underserved children throughout India. They achieve this by leveraging AWS AI and ML technologies and currently serve over 1.75 million children across nine Indian states. India’s CreditVidya uses AI and ML to incorporate smartphone data when assessing loan applications for people without credit history, helping process over 25 million loan applications.
Source: AWS, Accenture Report
That said, cybersecurity challenges, organizational culture, lack of access to information technology (IT) infrastructure (software and hardware) and digital skills are the primary barriers to cloud adoption among small businesses.
How to Unlock the Potential
Accenture recommends that to unlock this potential, businesses and governments will need to collaborate to foster the continued adoption and maturity of cloud usage.
Businesses, according to the report can achieve this by:
- Identifying how cloud can help them scale and deliver global impact
- Investing in embedding cloud technology into their strategy
- Developing a migration plan, and training employees to leverage the benefits of cloud technology
Governments can support businesses in achieving a cloud-enabled economy by:
- Prioritizing cloud education across all levels
- Investing in digital infrastructure to ensure innovation can continue unimpeded
- Leading by example by promoting cloud adoption across all levels and divisions of government
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Written By: Techquity India
