When a medium sized business in India adopted a cloud-based inventory management system, they were able to reduce errors by 60% and improve delivery time by 40%1. Such benefits are no longer surprising, and companies in India are experiencing similar advantages. Indian organisations, much like their global counterparts, have been rapidly embracing the cloud and the demand is growing exponentially. The Indian cloud computing market was valued at nearly $18 billion in 2024, with forecasts indicating a CAGR of over 26% for the subsequent six years2.
India’s share of the global cloud market remains small, yet its growth potential is significant as more businesses realise the advantages of cloud computing. However, it’s worth considering the scale of opportunity especially in the small to medium sized business segment. Here’s why. As of September 2025, India has over 68 million registered Micro, Small and Medium Enterprises (MSMEs) and around 1,59,000 startups3, 4. Together, they represent a significant and rapidly expanding market for cloud adoption in the country. A Microsoft survey of 3,000 businesses in India revealed that more than a quarter of SMBs were rapidly adopting new technologies, and over 25% had already implemented cloud solutions5.
While the cloud offers myriad advantages, moving to the cloud isn’t without its challenges. Predicting and controlling cloud costs remains difficult, especially for SMBs or startups. The cost structure of the large global cloud computing providers can be daunting, while the ongoing talent shortage and rising data security risks make the journey even more complex. So how does a company make the right choice?
In the complex and evolving cloud computing landscape, selecting the right partner among the many cloud computing service providers in India is no trivial task. Whether it’s choosing any of the global cloud companies or an Indian cloud computing company, organisations need to consider several factors such as cost, scalability, regulatory compliance, performance, and long-term flexibility.
In this blog, we consider five critical factors that SMBs need to consider while choosing a cloud computing provider:
For SMBs and startups, the first and main consideration is often cost while adopting the cloud. A provider that provides transparent, predictable pricing models such as pay-as-you-go or subscription plans helps maintain financial control and ensure easy scalability for the company. This flexibility is particularly valuable for companies with fluctuating workloads or seasonal demand. A transparent pricing model without hidden charges related to storage, data transfer, or customer support is another critical factor.
Cloud downtime can impact smaller businesses greatly by disrupting operations, diminishing customer experiences, and eventually resulting in revenue loss. SMBs need a minimum of 99.9% uptime that can be guaranteed through robust service-level agreements (SLAs). In addition, backup, redundancy, and disaster recovery mechanisms are crucial to ensure business continuity during unexpected disruptions.
SMBs often do not have dedicated IT teams, making dependable support a key selection factor. They need to select a service provider that offers 24×7 technical assistance, preferably with local support staff, to help resolve issues quickly and minimise downtime. Onboarding help, migration support, tutorials and training, and overall service support are other factors to consider.
If the chosen cloud computing provider enables easy integration with the organisation’s existing systems as accounting software, CRM, or ERP solutions, the transition to the cloud becomes more seamless and efficient. Another aspect is easy compatibility with open APIs and popular programming environments to ensure that SMBs can expand or customise their systems without being locked into one technology stack.
For a small but growing business, scaling rapidly without roadblocks is critical. Scaling resources, whether up or down, enables the organisation to manage growth efficiently without service interruptions. There are some cloud computing companies that offer startup programmes or credits that can help reduce initial setup costs. Another aspect to consider is if the cloud provider supports easy data migration and interoperability. The ability to move workloads or switch vendors without significant cost or complexity protects the business from future inflexibility and ensures greater control over its digital assets.
Indian SMBs today can choose from several capable and trusted cloud providers in India, including Intelics Cloud, that offer multiple advantages to this segment of companies. First, an India based provider presumably has a deeper understanding of the local business environment, including operational challenges, cost sensitivities, and infrastructure constraints, enabling them to design cloud solutions that are both practical and affordable. Second, since the billing is done in Indian currency, the uncertainty of currency fluctuations is eliminated. Third, India’s data privacy laws, governed by the Digital Personal Data Protection (DPDP) Act, 2023, are becoming increasingly stringent. An India based cloud computing provider can ensure data localisation and sovereignty, where sensitive information is stored and processed within the country’s borders. Fourth, local hosting provides the advantage of lower latency. Since the data travels shorter distances, applications load faster, transactions process quicker, and overall performance improves, which is especially beneficial for SMBs. Finally, the challenge of vendor lock-in and high exit costs remains a key concern for many small businesses. Indian cloud computing providers like Intelics Cloud address this challenge by offering flexible terms and minimal exit barriers, allowing SMBs to scale without restrictive contractual obligations.
The Digital India initiative has taken deep roots in the Indian business milieu over the past 10 years. The momentum of cloud adoption among India’s SMBs and startups, aligned with this initiative, is both undeniable and transformative. As the digital economy deepens its roots, cloud computing is emerging as the great enabler helping SMBs enhance efficiency, improve customer experience, and compete on a global scale. Yet, the decision to move to the cloud must be guided by strategic considerations around cost, flexibility, reliability, security, and control. As the digital ecosystem continues to mature, the synergy between Indian SMBs and reliable and efficient cloud computing providers will play a vital role in shaping the country’s digital future.