Majority of Indian MSMEs plan to increase their cloud spend in 2025: Report

Around 81% of micro, small and medium enterprises (MSMEs) respondents in a survey said they want to increase their cloud spending budget in 2025. 

The survey by Chennai-headquartered Zoho titled “State of Digital and Customer Operations in Indian MSMEs" took data from 5,149 MSMEs across industries in India. It revealed that 77% of the companies have allocated up to 50% of their 2024 budget toward cloud solutions. 

Customer Relationship Management (CRM), financial services and business intelligence are some of the key technology areas of businesses according to the survey findings. 

Zoho adds that 87% of the survey respondents have either used a CRM solution before or are currently using one, out of which 97% said they have seen an improvement in their customer operations after using it. 

Additionally, 90% of MSMEs currently not using a CRM solution said that they will adopt one by 2026. 

What’s stopping Indian MSMEs from growing exponentially?

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What’s stopping Indian MSMEs from growing exponentially?

"This MSME Day, we commemorate the vital role of these businesses in our country," said Praval Singh, VP Marketing and Customer Experience, Zoho Corp. 

"As we have closely worked with them for over two decades, we understand that a prominent hurdle these businesses face as they scale is the lack of feature-rich and accessible solutions in the market. Therefore, we have invested in building products like Bigin that are focused on their specific needs, and have made them affordable, packed them with the right set of features, and ensured they are easy to set up and use," Singh added. 

The findings also identify that the major chunk of adoption challenges these companies face are high software costs, budgetary constraints, lack of tech skills, and integration hassles.