By Frankline Sunday
The adoption of Cloud Computing by small and medium enterprises (SMEs) is steadily driving up revenues of service providers.
It has also contributed their growth. Cloud computing has been in the country for the last five years. But it was not until two years ago that corporates started warming up the service.
The concept generally refers to companies adopting software solutions that are hosted outside the company’s Information technology infrastructure. This implies that instead of buying computing and networking hardware, companies can outsource the services freeing up most of their capital expenditure to be channeled towards other priority areas. While traditionally the preserve of large firms and multinationals, SMEs have now joined the bandwagon.
They are moving their operations to the cloud. This is as more entrants into the market increase competition and drive down service cost.
“We have seen an increase in the adoption — both in demand and range of services demanded,” said Access Kenya Group Chief Technical Officer Raymond Macharia.
“Initially it was basic backup and storage, now it includes applications such as enterprise resource planning. The planning ropes in accounting, human resource, procurement, stores management, project planning among others.”
Macharia said most SMEs are aware that it is no longer necessary for them to own their own email servers or be in control of their messaging needs since the same can be outsourced. The increased adoption of Cloud services has also seen more firms diversify business and move into cloud computing. A local mobile service provider Safaricom, two years ago made an entry into the service with a cumulative Sh3.5 billion war chest. Through a partnership with Seven Seas Technologies, EMC and Cisco, the company today offers a range of cloud computing services including hosting, storage and backup services.
reliable backup
Fibre optic cable company Seacom became the latest entrant in the cloud services market three months ago through its new subsidiary Pamoja Cloud Services.
According to Mr Macharia, the adoption of cloud services both locally and internationally has been fuelled by a need for companies to have a reliable backup. “Many information technology heads depend on tape backups, they have to be taken every day, stored offsite in a safe place and tested regularly,” he explained. “With today’s regulatory mandate to store data for longer periods of time, the cost of acquiring and maintaining a larger number of tapes can be heavy for an SME.”
This form of backup is time consuming and fraught with errors as a single incorrect tape backup will need to redone manually.
In cutting cost of acquiring IT equipment, adoption of cloud computing by SMEs now puts them vantage point to compete with their larger counterparts.
In addition, as more firms adopt and bear testimony to the benefits of cloud computing, previous apprehension over management of sensitive data by hosting companies is subsiding.
