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Indian MSMES Express Concern with Google Workspace’s Revised Pricing

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Indian MSMES Express Concern with Google Workspace’s Revised Pricing

Several Indian Micro, Small and Medium Enterprises or the MSMEs expressed worry about rising expenses following a recent modification to pricing for Google Workspace solutions. One of the businesses claimed in an open letter to Google India’s senior management on August 17 that such pricing practises would add an extra Rs. 2,000 to Rs. 5,000 crores in annual costs for Indian MSMEs for services they would never utilise.

Key Takeaways

  • Indian MSMES Express Concern with Google Workspace’s Revised Pricing – Several Indian Micro, Small and Medium Enterprises or the MSMEs expressed worry about rising expenses following a recent modification to pricing for Google Workspace solutions.
  • 5,000 crores in annual costs for Indian MSMEs for services they would never utilise.
  • Google understands that MSMEs which are small can’t have data of 100 TB (50 users with 2 TB each), and that they won’t be able to use it or avail it.
  • The process of exporting email data from Google Workspace is complicated.
  • Global technology MNCs typically craft a particular strategy for India that includes offering goods at the most affordable prices and services initially either free or at a very minimal charge with a number of add-on facilities,said Praveen Khandelwal, Secretary General, Confederation of All India Traders or the CAIT.

Sanjay Gupta, the head of Google India, Mayoori Kango, the head of industry—agency partnerships, and Amit Kumar, director of sales for Google Cloud India, were the recipients of the letter from Synersoft Technologies. Additionally, copies of the letter were forwarded to the Indian Competition Commission, MSME, IT and broadcasting, science and technology, industry and commerce, finance and various other recipients.

The CEO of Synersoft Technologies, has explained the myth by stating that, in the past, each enterprise user would pay about Rs. 2,500 on a per annum basis for the G-Suite Basic 30 GB storage space plan.If, for example, two senior team members required more storage capacity, only those two individuals may upgrade their plans to receive 100 GB of extra space for a fee of Rs. 1,300 per user per year.

However, they were informed of a new pricing strategy as of June.

Then Google declared that G-Suite would be rebranded as Google Workspace with specified policy adjustments. We’ve been told that the extra 100 GB of storage is no longer accessible. The “Business Standard” category, which has a minimum storage requirement of 2 TB and costs Rs. 10,000 per user on a yearly basis, must be upgraded. Additionally, they stated that you must upgrade all of your accounts to 2 TB storage if you require more storage than 30 GB in a single account, according to Shah.

It was also stated that there is a force to upgrade all 50 accounts (of staff) to a 2 TB storage at a 400% greater cost because I just require 130 GB for a few individuals. From Rs. 1,20,000, there is a yearly outflow of Rs. 5,00,000.

Google understands that MSMEs which are small can’t have data of 100 TB (50 users with 2 TB each), and that they won’t be able to use it or avail it. This is what was stated by an MSME registration. Therefore, it is not need to provision 100 TB on its cloud and is still able to charge for 100 TB, according to Shah.

It was also stated that, in the past, the cost of using Google email accounted for about 7 to 10 percent of the overall amount spent on digital expenses for operations, which also includedSoftware as a Service (SaaS) subscriptions, Internet prices, and other expenses. The cost for Google email accounts now only accounts for up to 30% of total digital spending, according to experts, and this is because of the pricing shift and the necessity to upgrade it for all the employees of the entity.

In case someone wishes to download data and move to another provider, Google has also limited the amount of data that can be transferred at once, according to expert from Synersoft.

The process of exporting email data from Google Workspace is complicated. The majority of MSME are unable to comprehend them, and their only option is to download all emails sent to the new service provider from Google. Google has a rule that I can’t download all of my emails at once to another service provider if I wish to. Every hour, it will permit a set quantity of emails before waiting for the following cycle. It requires days. And now, emails have stopped.

Global technology MNCs typically craft a particular strategy for India that includes offering goods at the most affordable prices and services initially either free or at a very minimal charge with a number of add-on facilities,said Praveen Khandelwal, Secretary General, Confederation of All India Traders or the CAIT. Once customers or businesses gain accustomed to their services, they raise the costs. In the beginning, these businesses use AI and ML to track the data and purchasing power of each and every individual or business using their services. Later, as users grow accustomed to these services, however, they start charging exorbitant fees, making it impossible for users to refuse to use them.

Google provides customised services

Based on certain enquiries, a Google representative clarified that, with each customer’s particular collaboration and security needs in mind, we have been assisting our clients with the transition to our new editions ever since we introduced Google Workspace in 2020. When switching to Google Workspace solutions, the vast majority of our customers will experience little to no change, and we are assisting all of our customers in making the switch.

The representative also added that from smaller businesses wishing to make quick, self-service purchases to larger enterprises with more sophisticated requirements, Google Workspace offers customised alternatives that are in line with how clients want to acquire our integrated suite of apps. Additionally, they are heavily investing in Google Workspace’s value for all customers, including those in consumer, enterprise, SMB,non-profit, education, and various other sectors.

Conclusion

In India, any business or enterprise that falls under the category of micro, small, or medium-sized enterprises (MSME) can apply for MSME registration. The eligibility criteria for MSME registration are based on the investment made in plant and machinery or equipment for manufacturing or service enterprises. MSME registration offers several benefits to businesses, such as easy access to credit, tax exemptions, and government subsidies, among others.

To get your business registered under MSME, you can seek the assistance of Kanakkupillai, a one-stop destination for all your business registration needs. With its team of expert professionals, Kanakkupillai offers a hassle-free MSME registration process that takes care of all the necessary documentation and compliance requirements.

So, if you are looking to register your business under MSME, get in touch with Kanakkupillai today and give your business the boost it deserves!

FAQ on Who can apply for MSME registration

1. Who falls under MSME category?

5 to 10 crore. Enterprises can be categorized into the micro, small and medium category on the basis on annual turnover as well. If the yearly turnover of the business is below Rs. 5 crore, it will be a small enterprise.

2. Who Cannot register under MSME?

Can trading companies register under MSME? No, trading companies or enterprises cannot register under MSME. As of now, the Ministry of MSME only allows manufacturing and service industries to register as MSMEs in India

3. What is the minimum turnover for MSME registration?

As per this announcement, the definition of Micro manufacturing and services units was increased to Rs. 1 Crore of investment and Rs. 5 Crore of turnover. The limit of small unit was increased to Rs. 10 Crore of investment and Rs 50 Crore of turnover.

4. What is the rule of MSME?

As per the MSME Development Act, 2006, the MSME industry has two 2 sectors: the manufacturing sector and the service sector. In India, the manufacturing end of the industry comprises of at least 6% of the GDP and the service end contributed to almost 25% of the GDP.

5. Can I register MSME before starting business?

MSME registration is a mandatory process for any business to legally START functioning in India. The registration process is free of cost, paperless, based on self-declaration, and is differentiated under two main categories, namely manufacturing enterprises and service enterprises.

6. What is the minimum turnover for MSME?

As per this announcement, the definition of Micro manufacturing and services units was increased to Rs. 1 Crore of investment and Rs. 5 Crore of turnover. The limit of small unit was increased to Rs. 10 Crore of investment and Rs 50 Crore of turnover.

7. How do you qualify as MSME?

The Philippines employs two criteria in operationally defining MSMEs, namely employment and asset size. The PSA classifies an enterprise as a micro if it has less than 10 employees, small if it has 10-99 employees, medium with 100-199 employees, and large if it has 200 or more employees

8. What are the disadvantages of MSME?
  • Piling of interest. The first demerit is the interest amount to be paid. ...
  • Tedious procedure while applying of loans. ...
  • No collateral requirement. ...
  • Processing fees. ...
  • The whole amount is not provided. ...
  • High credit score.
9. Does MSME have validity?

In order to provide MSMEs time to transition to the new site and continue to receive government benefits, the MSME license's validity, which had been increased from December 31, 2021, to March 31, 2022, has been extended. Up until June 30, 2022, the current MSME registration

10. Is MSME renewed every year?

MSME registration is valid for indefinite period as long as the business is running. There is no need of renewal of MSME.

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Kanakkupillai is your reliable partner for every step of your business journey in India. We offer reasonable and expert assistance to ensure legal compliance, covering business registration, tax compliance, accounting and bookkeeping, and intellectual property protection. Let us help you navigate the complex legal and regulatory requirements so you can focus on growing your business. Contact us today to learn more.