Small and Medium Enterprises (SMEs) in Nigeria face a lot of challenges resulting in slow growth or sudden exit out of the market which experts proximate within 5 years.
In this 21 century, new technology is able to provide innovations that could be adjusted to alleviate the burdens entrepreneurs and SMEs have endured for far too long.
Some of the Reasons include:
1: OPEX vs CAPEX
Though the Nigerian government is addressing these problems with loans and financing for SMEs, there is so much to do to rectify decades of neglect.
With the introduction of capital expenditure (CAPEX) and operating expense (OPEX) of cloud technology service SMEs are able to operate the computer resources according to their growth, finances, capacity, and need.
This system, which is typically placed within the company, is purchased as a capital expenditure (CAPEX).
Cloud-based software, which is typically owned and managed by a cloud service provider, is purchased as required as an operating expense (OPEX).
2: Access to new technology
Technology evolves on a daily basis and at the same time delivery of goods and services changes too. To stay competitive local and international local entrepreneurs need access to technologies such as augmented reality, the internet of things, etc., to enhance the experience and taste of consumers today.
All of these technologies are expensive and depend on the cloud technology infrastructures to function.
Fortunately, with operating expenses (OPEX) SMEs can rent cloud services at cheaper rates without breaking the bank, offer an enhanced experience, and stay with bigger competitors home and abroad.
The increase of cyberattacks and crimes affects both big and small enterprises due to the covid-19 pandemic of 2020 as 80% of firms have seen an increase in cyberattacks according to idagent.com.
For the big enterprises and companies, they have the financial clout to protect themselves and their interests but small and medium enterprises are vulnerable because of their lack of finances.
And as mentioned before cloud computing offers update security services for their data and applications at a cheaper rate.
Aderemi Adejumo has more than 30 years’ experience in Technology, having worked in the United Kingdom, France, Belgium and Switzerland before moving back to Nigeria.
He is currently the Managing Director of Cloudflex Computing Service Ltd.
He has written several published articles and is passionate about the development of Cloud computing in Nigeria.
He can be reached via email: [email protected]