New research recommends cloud computing for SMEs

Astudy by the Nigerian Institute of Advanced Legal Studies (NIALS) has recommended that Small and Medium Enterprises (SMEs) using ICT integrate cloud computing into their overall IT strategy.

Lanre Fagbohun, a professor, director of research at NIALS, and head of the research team, said in the course of the study, the researchers looked at the benefits of adopting cloud computing. Some of the benefits he outlined include avoidance of costly up-front capital investments in IT infrastructure, faster go to market ability, flexibility in deployment of computing capacity in cloud model which allows users to pay for excess capacity only when it is required, self-service and increased automation which improves process efficiencies and reduction of environmental damage through maximisation of computing powers. 

The study revealed that many of the SMEs using ICT have a mix of cloud and non-cloud-based solutions. The researchers therefore urged that SME associations such as Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) and the Manufacturers Association of Nigeria (MAN) through regular workshops and seminars assist their members understand the costs of supporting the different elements of their existing IT models and how they can successfully integrate cloud computing into their overall IT strategy.

Fagbohun explained that the research was undertaken with the primary goal of understanding how data privacy, security of data, data sovereignty/ localisation and management should be approached. He said it is to better access the impact of fundamental apprehensions like entrusting the safety of vital and in some cases confidential data to a third party, liability for loss and the complication of having the location of data in different jurisdictions with differing levels of protection, privacy concerns associated with the access, use and sharing of cloud based data. He further said the research also looked into service reliability, lack of clarity in the cost-benefit analysis of how cloud service savings compares with existing operations and fears over vendor lock-in as a result of dependence on a cloud provider’s service on the rate of adoption of cloud services in Nigeria.

He also explained the rationale for the choice of the states the study focused on from the six geopolitical zones of Nigeria namely Lagos and Oyo (South West), Anambra (South East), Rivers (South South), Kwara (North Central), Kaduna (North West) and Abuja. Fagbohun explained that these states have a good representation of the educational institutions and SMEs and their regulatory institutions.

OLUYINKA ALAWODE