To promote the use of cloud computing by small businesses in India, the Indian government is . The hope is that the use of the cloud will make small businesses more successful, thus increasing both employment and tax revenues to the government.

In the United States we see the opposite approach, with the government more interested than promoting its use.   

Subsidies or not, the cloud does make it easier to start a small business because it makes IT resources both affordable and available. Before the cloud, those resources could cost millions of dollars.

Small businesses tend to operate on tight margins, and cheaper IT is great, but the reality is that it’s also just as cheap to competitors large and small. So cloud taxation would especially hurt small businesses.