Budget 2017: Digital Push Will Drive Cloud Growth
Finance Minister Arun Jaitley has made a case for a cashless society and steps have been taken in that direction; this push is going to be the cornerstone of the Digital India initiative. He has particularly directed this push towards rural India, where 70% of the Indian population resides. Any policy that doesn’t take the countryside into consideration is bound to fail; thus, the importance of the rural economy cannot be overemphasized enough.
This push for digitalization will directly and indirectly fuel tremendous growth in cloud computing—the technology essential for the success of demonetization, Digital India, Smart City, or the GST taxation system. A strong cloud-computing infrastructure will pave over tricky areas such as implementation gaps in demonetization, tracing black money, and successful digital wallets—which is on its way to becoming the primary mode of financial transactions of the future. Of late, we have witnessed many an e-payment or digital wallet provider underperform. Those loopholes can be removed with the use of cloud tech.
Not only that even the implementation of the Goods and Services Tax (GST), which is set to roll in this year, depends on a successful adoption of the cloud-computing infrastructure. Let’s take an example: If an enterprise has branches or offices at several locations, it would be difficult for it to compute accounts and taxes with conventional software.
The implementation of various aspects of the new tax law, such as the input tax credit system—which allows an entrepreneur or an enterprise to claim tax credit paid outside the home state—as well as the centralization of taxes, would need a sound cloud infrastructure as a prerequisite because this is the technology that can provide computing on the go.
“Through the use of an Internet connection and a browser, enterprises can coordinate among various branches or offices and get their GST calculated. It would be difficult for a premise-based technology to factor in geographical spread,” said Shashank Dixit, CEO, Deskera, a global leader in cloud technology.
Moreover, the push to a digitized and cashless economy would get international cloud players interested in the government’s initiatives. In the next budget, the Finance Minister can incentivize cloud computing technology. This step would speed up the process of digitalization and also provide a strong foundation for a digital economy. Summing up, Budget 2017 provides the required groundwork for the quick expansion as well as consolidation of the cloud market. This step would help startups, SMEs and small businesses as growth in cloud technology would allow them access to state-of-the-art technology at affordable prices—suitable to their size and scale. Any progress of the MSME sector would only ensure overall growth of the economy as well as holistic development of the society.
[Disclaimer: The views expressed in this article are solely those of the authors and do not necessarily represent or reflect the views of Trivone Media Network's or that of CXOToday's.]
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