Cloud computing can help 1M MSMEs compete effectively with large companies

By Leandro Anton Castro

CLOUD computing—or the practice of data management through the Internet—will enable the over 1 million micro, small and medium enterprises (MSMEs) in the Philippines to level the playing field with large corporations.

In order to flourish in a highly competitive market, these enterprises need to realize cloud computing is the way to go, since demand for digital services grows at a continuous pace, IP Converge Data Services Inc. (IPC) Director Niño R. Valmonte said in a briefing on Wednesday.

“We call the cloud the great equalizer because the start-ups and small businesses will now be able to use or take advantage of solutions that large companies would be able to use, as well,” Valmonte said.

Savings, he said, can be realized through the cloud, vis-à-vis ease of expansion.

“It’s easy to expand when you need more, when your business is growing, because you do not need to pay up-front, and just subscribe to more,” Valmonte said.

In terms of disaster recovery, in a country plagued by disasters, it’s important for businesses to be able to “immediately subscribe to more resources, on-the-fly.”

“Basically, with the pay-as-you-go model you can scale up and scale down, anytime you need, when you need it,” he said.

The cloud, he added, protects enterprises from data loss, noting that 65 percent of data loss occurs in-house.

“By that alone, you know it’s safer to have your data stored elsewhere. In terms of security, it’s a commitment by both the cloud service provider, as well as the user. It’s a shared responsibility,” he said.

Cloud service providers have the infrastructure and facilities to ensure security from data losses. More than helping individual businesses, participants of the cloud community also contribute to society, Valmonte said.

“By joining this community, members are able to contribute to society by sharing their time and knowledge about the cloud and information and communications technology, in general, and pave the way for start-ups and small businesses to flourish,” he said. “The success of every Filipino business fosters economic growth and nation-building, and better lives for Filipinos,” he said. Valmonte urged technopreneurs, Web developers and information-technology enthusiasts, among many others, to participate and play roles in economic reform.

The cloud-computing sector in the Philippines is estimated at $260 million today, but is seen to balloon to as much as $800 million in the next six years.