About 90,000 businesses, or around 6 percent of the country’s 1.5 million Micro, Small and Medium Enterprises (MSMEs), have already shut down due to the COVID-19 pandemic, according to a recent survey by the Department of Trade and Industry (DTI).
Unfortunately, many businesses, specifically MSMEs, were surprised and the fact that many of them were not aware, or do no have, a Business Continuity Plan (BCP), a system of prevention and recovery from potential threats to a company. While IT plays just one role in BCP, it is an important one.
However, there were also many businesses that managed to pivot and for some, it was the perfect time to fast-track their business’ digital transformation journey.
With the resurgence in COVID-19 cases and for better continuity among businesses even in the middle of a pandemic, Stitch Tech Solutions believes that with cloud computing, businesses of any scale can continue operating even amid the pandemic and even as natural disasters strike, the Philippines being in the middle of the “Pacific Ring of Fire,” where natural disasters like typhoons, volcanic eruptions or earthquakes are common.
“Aside from COVID-19, we understand that many businesses in and around Metro Manila have also been watching the movements of Taal Volcano and Mount Pinatubo given their grim histories, as well as ‘The Big One’ since these are expected to cripple business operations. With cloud computing, enterprises can continue to function amid these events as if they didn’t happen,” said Stitch COO Alex Aquino.
Among the benefits of cloud computing include:
- Speed – Most cloud computing services provide self-service, and on-demand, so even vast amounts of computing resources can be provisioned in minutes.
- Flexibility – Cloud computing is a flexible way of storing and accessing data over the internet. This means that your data is not tied down to one specific computer and can instead be accessed from several devices while still keeping all your information and data secure.
- Global Scale – Delivering the amount of IT resources right when they’re needed and from the right geographic location. For instance, certain multinational companies have just one central server that can be accessed simultaneously from different locations in the Philippines and abroad. Geoblocks can be applied, if necessary.
- Productivity – The accessibility of cloud solutions allows employees to work on-the-go; all they need is a connection to the internet to work from wherever they need to.
- Cost savings – The cloud allows you to trade capital expenses (such as data centers and physical servers) for variable costs. It can save you an estimated 30-50% in infrastructure spending. Cloud solutions are often handled by vendors who provide cloud computing services.
“With cloud computing, businesses can store and access files and software, especially large ones, without necessarily buying a physical server, saving them office space and cost. Office personnel can also work from home or anywhere else other than their usual workplaces,” Aquino further said.
Unfortunately, there is a gap in MSMEs’ access to cloud computing tools and BCP practice. A study by the International Labour Organization (ILO) published in 2015 suggested that SMEs in the Asia-Pacific region are the most vulnerable and least prepared for disasters, whether natural or man-made. It also cited related research saying that only 13 percent of the region’s SMEs have BCPs. In fact, major local firms have used cloud computing as part of their BCPs in the storms’ aftermaths.
Nonetheless, the ILO research noted the Asian Disaster Preparedness Center’s point that limited BCP awareness is one of the main barriers to the concept’s adoption.
“In a country prone to disasters, coupled with the pandemic, and with MSMEs serving as the backbone of the economy, it just makes perfect sense that cloud computing is a key solution towards achieving not just business continuity, but our economy bouncing back better,” said Stitch Chairman Eusebio Tanco.
“Our financial health as a country suffered this pandemic given that MSMEs function as our main economic lifeline. Through cloud computing, we want to give these businesses a shot in the arm, so they can get back on their feet the soonest and not just survive, but thrive,” Stitch CEO Jaeger Tanco said.
Though many businesses are open to exploring the benefits of cloud-based solutions, security remains a sensitive issue among companies, especially those who are sensitive about their data. “They need not worry because data in the cloud undergo strict encryption protocols, including heightened security of authorization to control access to the files, and there’s also vulnerability testing for possible data breaches,” Aquino said in response to a question from Frontpageph.com.
When asked as regards the future of businesses in the post-pandemic period, Jaeger Tanco said technology will play a very big role in the “new normal” in business. “A lot will also depend on computers as we move to the next stage, the new technology in terms of cloud, and this will be the new normal, the new future.”
For his part, Aquno said that though there may be companies who will go back to the “old normal” once everything is done, “they still need to future-proof their companies because technology will still be a very big part of the new ways, the new normal, in the future.”
Aside from cloud computing services, Stitch offers SAP Consultation and IT Services such as website and app development and management, as well as IT support and enhancement of day-to-day operations.