Although there are challenges that exist in the IT market today, the adoption of cloud services has made it possible for businesses to remain competitive and relevant for the small and medium enterprises (SMEs).
This is according to Raymond Wright, MD at Network Alliance, who argues that the increasing level of cloud service adoption and application within the SME space reflects a fast-maturing market place.
However, he says, the lack of skills in the technology sector is still a concern and "the reality is that all software and hardware procurement is directly linked to the exchange rate, which is constantly rising".
He adds that IT decisions in the SME sector are not made by IT professional but by finance managers or directors who, although knowledgeable about business, have limited knowledge about technology.
"IT companies need to employ people who not only have theoretical qualifications but also have exposure and technical know-how.
"We have a training schedule in our business where we take young people and train them. We give them an opportunity to become [for example] Microsoft engineers, server administrators or desktop administrators," says Wright.
He states that vendors in the IT industry must make an effort to spread awareness about the IT sector as well as encourage more people to work in the industry.
Security is another challenge facing SMEs, says Wright, pointing out that because the enterprises are small, they often do not have necessary resources and knowledge to take the business to the next level.
Despite the challenges, SME companies are adopting new technologies such as private cloud solutions based on monthly payment rather that annual payments, says Wright.
"For SMEs it is all about cash flow, therefore paying smaller monthly amounts is a more affordable way of adopting technology than annually," he explains.
By adopting cloud solutions, annual IT spent is transferred into updating the on-premise infrastructure and getting the benefit of a total infrastructure revamp with some business systems in the cloud and some still located on-premise, all with a lower cost, states Wright.
There are going to be more and more small enterprises in SA, and their economic contribution to the local economy is going to be substantial if they embrace the latest technology available to them, he concludes.
Share