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Indian Government to Offer Subsidy for MSME’s Deploying Cloud Computing

MSMEs to use common as well as tailor-made IT infrastructure in addition to managed services software

India: Indian Government, recently announced to provide subsidy upto USD1510 (INR 1,00,000) for Micro & Small Enterprises to strengthen the usage of cloud computing for information and communication technology applications.

The Govt scheme will provide subsidy on user charge for a span of 2 years which will be disbursed through direct benefit transfer route. The MSME initially have to make a full payment to service provider which will be disbursed by Telecommunications Consultant India Ltd(TCIL) into the beneficiary account.

MSME ministry stated that to sensitise the benefit of ICT along with cloud computing application for business purposes. Cloud computing services will be offered under two categories.

The first benefit includes a maximum subsidy of USD1510 per unit disbursed over a span of 2 years and second benefit which includes offering cloud services at much lower cost to desired MSME’s. Government allocated a budget of USD690 million with the centre granting USD414 million over a span of 2 years.            

TechSci Research depicts that the rising demand for cloud solutions would play a vital role for digital enterprises. With increased awareness of the cloud services among various Micro, Medium & Small Enterprises and the growing need to automate big-data while reducing risk, in addition to Infrastructure Automation & service management is likely to drive the growth for hybrid cloud Infrastructure as a Service in coming years.   

According to a recent report published by TechSci Research,India Cloud Computing Market Forecast & Opportunities, 2020”, the market for cloud computing services in India is projected to grow at a CAGR of over 22% during 2015-2020. Increased government spending on National Optical Fibre Network (NOFN) and various e-governance portals, coupled with growing acceptance of cloud services in SME segment is expected to drive the market for cloud computing. SaaS is set to top the charts as the largest cloud service segment, occupying over 40% share in the market by 2020.  

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