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The Problem Isn’t the Cloud - It’s How Indian SMEs Are Sold the Cloud

Lytus Technologies Holdings Private Limited

The Problem Isn’t the Cloud - It’s How Indian SMEs Are Sold the Cloud

“Cloud is supposed to simplify business. But for most Indian SMEs, it ends up creating more questions than answers.”

Walk into any room full of Indian small and mid-sized business owners and say the word “cloud,” and you’ll see a few nods, a few confused looks, and at least one person saying, “Oh yeah, we’ve been thinking about it for some time now... just haven’t figured out how it works.”

That’s the real story behind cloud adoption in India’s SME sector.

It’s not that Indian SMEs don’t want the cloud. On the contrary, a 2024 study by CMR India shows that over 50% of Indian SMEs view cloud tech as a key to business expansion. They’re hungry for digital transformation, they just don’t want a tech headache served with it.

So what’s stopping them?

It’s Not the Tech. It’s the Way It’s Sold.

If you're an SME founder or even someone advising one, you’ve probably sat through one of those classic cloud sales calls. It starts with excitement. But soon, you’re lost in a sea of words: “hybrid workloads,” “Kubernetes orchestration,” “elastic compute,” “data lakes.” And all you’re thinking is, “Wait, how is this going to help me manage my billing better? Or keep track of my stock?”

That’s where most providers lose the plot.

They start with tech features instead of business impact. They sell capacity, dashboards, and SLAs. But SMEs are looking for one thing - clarity.

Most Indian SMEs don’t have internal IT teams. They aren’t looking to optimize their cloud spend across regions. They don’t need to “lift and shift” workloads. What they need is someone to say, “Here’s how moving to the cloud will help you deliver orders faster, cut inventory mistakes by 30%, and reduce billing errors.”

What’s Really Holding SMEs Back?

Here are the top four blockers, based on the CMR study and echoed by dozens of founders across India:

1. Lack of Internal IT Teams

Most SMEs don’t have CIOs or full-fledged IT departments. There’s usually one “tech-savvy” team member handling everything from printers to payments. So, when a cloud vendor comes in with five dashboards and a 60-page onboarding document, it overwhelms rather than empowers.

2. Data Migration Fears

Legacy systems are common. Whether it's Tally on a local server, Excel-based inventory, or WhatsApp for customer management, migrating all that to a cloud-based system feels risky. The fear isn’t irrational. Many have heard stories of data getting lost or systems not working post-migration.

3. Hidden Costs and Unclear ROI

Pay-as-you-go sounds great on a pitch deck. But in reality, SMEs often find cloud bills confusing and unpredictable. The result? A lot of skepticism. They ask, “What exactly am I paying for? And how is this better than what I’m already using?”

4. Poor Post-Sale Support

Many SMEs feel abandoned after signing the dotted line. Sales teams vanish, replaced by customer support bots and ticketing systems. There’s no real human guidance. And without someone to answer simple, context-specific questions - adoption stalls.

So What Do Indian SMEs Actually Need?

Here’s the shift the industry needs to make from a tech-first approach to a business-first, India-first approach.

Modular, Business-First Solutions

Don't sell packages. Solve problems. Instead of pitching a massive suite, offer micro solutions:

• A simple cloud tool to manage billing

• A CRM that integrates with WhatsApp

• Inventory management that works offline-first and syncs later

Bonus if it’s on a pay-per-use model. Nothing builds trust like transparent, predictable pricing.

Localized Onboarding & Support

Most SMEs operate in regional languages. Their business logic isn’t always “by the book.” So, onboarding should happen in their language, with examples they relate to. Think less like a software demo, more like a one-on-one training session.

Even after onboarding, support needs to be human and local, not buried under “Raise a ticket” links.

Vendor-Agnostic Advice

One of the biggest gaps in the Indian cloud ecosystem is the lack of trusted advisors. Most resellers push the product that gives them the biggest commission. That’s a problem.

What SMEs need are solution partners, people who look at their business holistically and say, “You don’t need XYZ right now. This smaller, more focused tool will do the job.”

We need more consultants, fewer commission-based closers.

Real Integration with Daily Tools

Don’t force SMEs to adopt 10 new tools. Meet them where they are. Can your cloud tool integrate with WhatsApp, Google Sheets, or even Tally? Can it send alerts on SMS?

The more invisible and seamless the tool feels, the faster the adoption.

Cloud Is a Journey, Not a Transaction

Let’s be honest, digital transformation is hard. And for SMEs, it’s deeply personal. They’re putting their business - often a family legacy on unfamiliar infrastructure.

So what they need isn’t a fast-talking tech salesperson. They need someone to walk the journey with them. Someone who’s there before the sale, during onboarding, and well after the bill is paid.

Think of it like this:

• Selling cloud should feel like mentorship, not a marketplace.

• The conversation should start with pain points, not platforms.

• And success should be measured in outcomes, not usage stats.

Because when done right, cloud isn’t just tech. It’s a way to build resilience, agility, and long-term growth for Indian businesses — no matter how small.

Final Thought

Cloud isn’t complicated. But the way we present it often is. If we want Indian SMEs to embrace it, we need to stop selling cloud the way we sell software — and start offering it the way we offer solutions.

Not with jargon.

Not with pushy pitches.

But with empathy, clarity, and local context.

After all, the goal isn’t just to get them on the cloud — it’s to help them grow with it.

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