cloud infrastructure

Cloud Adoption in emerging markets

Emerging markets such as India and China still have some barriers to get to the same level of cloud adoption as in the developed markets. These include:

Internet speeds:
Emerging markets still  don’t enjoy the internet bandwidth and speed available in other parts  of the world (Google highlights India bandwidth threat – FT.com). This makes it extremely frustrating for businesses to use  cloud services and might just be the biggest hindrance for them.

Price sensitivity:
A $22/month model for using a cloud service for 5 users e.g. JIRA might be peanuts for an Australian company but for an Indian company a similar low quality locally developed solution selling at $4/month would be the preferred option. Thus, cloud service providers need to revise their pricing model based on the affordability for businesses in that region.

Lack of local Cloud based applications:
Emerging markets focus on providing services to developed economies instead of creating cloud based software for their local market. Moreoever, the return on investment for creating such software would be low. Thus there aren’t many SaaS based local applications to begin with.

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