Cloud technology has changed how businesses operate, providing flexible, cost-effective solutions that eliminate the need for expensive infrastructure. For small and medium-sized enterprises (SMEs), cloud adoption is key to scaling efficiently, improving security, and staying competitive in a digital-first world.
At the same time, Artificial Intelligence (AI) is transforming business operations by automating workflows, strengthening cybersecurity, and delivering real-time insights. Together, AI and cloud technology are helping SMEs streamline operations, protect data, and compete at a global level.
In this installment of e27’s AI Leader Content Series, Kenneth Lai, Vice President, ASEAN at Cloudflare, discusses how these technologies are shaping SME growth and ensuring long-term business resilience.
Why SMEs need the cloud to scale
Traditional IT systems are expensive, difficult to maintain, and struggle to keep up with modern business needs. Cloud technology solves these challenges by offering a scalable, cost-efficient alternative that allows businesses to manage data, run applications, and support remote teams—all without the burden of maintaining physical servers.
Cloud adoption reduces costs, improves performance, and enables real-time collaboration, making it easier for SMEs to scale their operations. Businesses that integrate AI-powered cloud solutions can automate tasks, analyse data instantly, and optimise decision-making without relying on costly IT infrastructure.
Security risks are growing—AI can help
The shift to cloud computing has made businesses more connected, but it has also increased cybersecurity threats. As SMEs move towards multi-cloud environments and rely on Software-as-a-Service (SaaS) applications, cyber risks become more complex.
According to Cloudflare’s Asia Pacific Cybersecurity Readiness Survey 2024, 88 per cent of SMBs feel more vulnerable to cyberattacks due to the increasing complexity of their digital operations. Without strong security measures, businesses risk exposing sensitive data and suffering financial losses.
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AI-driven cybersecurity is changing the game by detecting threats in real time, blocking suspicious activity, and automating security responses. Zero Trust security models, which require strict verification before granting access, have become essential for businesses operating in the cloud.
Businesses that fail to prioritise security face operational disruptions, reputational damage, and financial losses. Investing in AI-powered security solutions ensures SMEs can scale with confidence, knowing their systems and customer data are protected.
How SMEs can build a smarter cloud strategy
Moving to the cloud is more than just shifting data online. To maximise the benefits, businesses need a clear strategy that balances security, scalability, and AI-driven automation.
A well-structured cloud approach ensures SMEs can secure their digital assets, improve efficiency, and prepare for future AI advancements. Instead of relying on multiple disconnected systems, businesses should integrate security, networking, and performance monitoring into a single framework. This reduces complexity and strengthens overall operations.
By embedding AI into their cloud strategy, SMEs can automate compliance monitoring, enhance real-time threat detection, and optimise cloud performance. A proactive approach allows businesses to harness AI while ensuring a secure, scalable infrastructure.
Cloudflare’s role in strengthening SME cloud security
For businesses transitioning to the cloud, security and performance must go hand in hand. Cloudflare’s Connectivity Cloud offers an integrated approach that secures networks, improves application performance, and simplifies multi-cloud management.
Instead of using multiple vendors for cybersecurity, networking, and performance, businesses can consolidate these functions into a single platform. Cloudflare’s cloud-based Zero Trust security solutions and network-as-a-service technology help SMEs protect data, reduce cyber risks, and optimise cloud performance without the need for large IT teams.
Also Read: Is the future of AI decentralised? Cloud computing holds the key
Cloudflare One, a cloud-based network-as-a-service solution, enables SMEs to operate in a multi-cloud or hybrid-cloud environment with zero trust security and optimised connectivity. This ensures data is secure while delivering faster application performance, essential for business continuity and long-term growth.
The future of cloud and AI for SMEs
Cloud computing and AI will continue to evolve, offering even greater efficiency, security, and automation. Low-code AI solutions will enable SMEs to integrate AI-powered tools more easily, reducing reliance on specialised expertise.
AI will also play a larger role in fraud detection, predictive analytics, and personalised customer experiences, helping businesses make smarter decisions and deliver better services. SMEs that invest in scalable, AI-ready cloud infrastructure today will have a major competitive advantage in the future.
Cloudflare remains at the forefront of cloud security and performance innovation, ensuring businesses can adapt to changing technology, secure their operations, and thrive in a digital-first economy.
Cloudflare is a global leader in cloud security and performance solutions, helping businesses protect their digital infrastructure, optimise network connectivity, and scale securely. By simplifying cloud adoption and cybersecurity, Cloudflare empowers SMEs to build resilient, future-ready operations.
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This article is part of e27’s special series on Artificial Intelligence for Startups and SMEs, where we explore the transformative power of AI in helping startups and small and mid-sized enterprises navigate today’s competitive landscape. Stay tuned for more insights from industry leaders in upcoming editions.
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