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There has been a significant increase in the number of medium, small and micro scale enterprises (MSME) around the world which has helped young Entrepreneurs to build small scale businesses. Cloud computing has been one of the primary enabler of the same because of the multi-tenant, ubiquitous, on demand computing services it provides. Cloud computing is a computational model where users are provided with on demand computational services through the Internet by the Cloud Service Providers (CSP). Cloud computing requires data to be resided on remote servers that can be accessed as per the user requirements. It eliminates the need to develop or build on premise infrastructure as through its various service models, it can deliver software, hardware, databases, and data over the Internet with a minimal rental charges. Small and medium scale enterprises have gained and are gaining from this model as it frees them from unnecessary computational complexities and helps them in concentrating in their businesses. It has also served as a profitable and viable business model for service based IT industries as a piece of software that is hosted on the cloud can be used by a number of clients, giving rise to the MSME industry.