Small and medium-sized business (SMB) spending in India on Software-as-a-Service (SaaS), a key component of cloud computing, is expected to spike 43 percent this year.

According to research firm AMI, more than 10 percent of Internet-owning India SMBs in Tier I and Tier II cities are considering cloud computing in 2011. “Among India Internet SMBs,” notes Kalyan Banga, Senior Research Analyst at AMI-India, “almost half have a mobile workforce and over one fifth provide telecommuting options to their employees. The need for anytime, anywhere data access is a key driver of cloud computing in India.”

He continues, “Mobility, telecommuting, notebooks, smartphones—all are playing an important role in cloud adoption. Hence, it is becoming increasingly evident that the entire ecosystem and the players within it are steadily gearing up for cloud adoption. In the aftermath of the economic downturn, cost-conscious India SMBs are tightening their purse strings. Cloud computing is appealing as it requires less of a financial burden through zero capex and minimal opex.”

AMI also found that infrastructure gradually is falling into place to support greater cloud growth within India SMBs. “The availability of affordable and high-quality broadband services is a major driver not only for cloud computing but all Internet-based technology adoption,” it explains. “The development of virtualization is another key booster. Moreover, implementation of cloud-based solutions reduces the organization’s need and dependability on skilled IT personnel.”

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