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UK SMEs can be categorized into three groups by their dependency on cloud infrastructure: high, medium, and low. Each category is defined by the extent to which they rely on cloud services for their core operations, and examples are provided to illustrate typical use cases. ## High Dependency ### Definition SMEs in this category rely heavily on cloud infrastructure for their core business operations. These businesses use cloud services for critical functions such as data storage, application hosting, and advanced computing tasks. The cloud is integral to their daily operations, and any disruption in cloud services would significantly impact their business. ### Examples 1. **Tech Startups**: Companies developing software applications or platforms that are hosted on cloud services like AWS, Google Cloud, or Microsoft Azure. 2. **E-commerce Businesses**: Online retailers using cloud-based platforms for their websites, inventory management, and customer relationship management (CRM). 3. **Media and Entertainment**: Firms that stream content, such as video or music, relying on cloud infrastructure for content delivery and storage. ### Use Cases - **Data Analytics**: Using cloud-based analytics tools to process large datasets and gain business insights. - **Machine Learning**: Leveraging cloud platforms to train and deploy machine learning models. - **Scalable Web Hosting**: Hosting websites and applications that require high availability and scalability. ## Medium Dependency ### Definition SMEs in this category use cloud infrastructure for significant but not all-encompassing parts of their operations. They may use cloud services for specific functions like email, document storage, or certain business applications, but they also maintain some on-premise infrastructure. ### Examples 1. **Professional Services**: Law firms, accounting firms, and consultancies using cloud-based document management and collaboration tools. 2. **Healthcare Providers**: Clinics and small hospitals using cloud services for patient records and telemedicine but still relying on local servers for some operations. 3. **Manufacturing**: Companies using cloud-based ERP systems for supply chain management and production planning. ### Use Cases - **Remote Work**: Enabling employees to access work applications and data from anywhere. - **Collaboration Tools**: Using cloud-based tools like Microsoft 365 or Google Workspace for team collaboration. - **Customer Relationship Management (CRM)**: Managing customer interactions and data using cloud-based CRM systems. ## Low Dependency ### Definition SMEs in this category use cloud infrastructure minimally, often for non-critical functions. They may use cloud services for basic tasks like email or simple data backup but rely primarily on on-premise infrastructure for their core operations. ### Examples 1. **Local Retailers**: Small shops using cloud services for email and basic accounting software. 2. **Traditional Service Providers**: Local businesses like hair salons or repair shops using cloud-based appointment scheduling tools. 3. **Small Educational Institutions**: Schools using cloud services for email and basic administrative tasks. ### Use Cases - **Email Services**: Using cloud-based email services like Gmail or Outlook. - **Basic Data Backup**: Storing backups of critical data in the cloud for disaster recovery. - **Simple Accounting**: Using cloud-based accounting software for financial management. ## Summary ### High Dependency - **Definition**: Core operations rely heavily on cloud infrastructure. - **Examples**: Tech startups, e-commerce businesses, media and entertainment. - **Use Cases**: Data analytics, machine learning, scalable web hosting. ### Medium Dependency - **Definition**: Significant use of cloud services for specific functions. - **Examples**: Professional services, healthcare providers, manufacturing. - **Use Cases**: Remote work, collaboration tools, CRM. ### Low Dependency - **Definition**: Minimal use of cloud services for non-critical functions. - **Examples**: Local retailers, traditional service providers, small educational institutions. - **Use Cases**: Email services, basic data backup, simple accounting.