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Cloud is no more a Choice
Cloud is no more a Choice

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Gone are the days when migrating to cloud was a choice only a few leveraged. Although the term ’cloud computing’ has come into action only since a decade or so, the history of cloud goes long back. Then came the reality check through the Covid-19 pandemic, which led to organizations of all sizes and forms working remotely. The lockdowns and other restrictions imposed during the time turned everything upside down. Especially industries like Hospitality and Tourism experienced challenges to survive. These uncertainty of times during the pandemic, has led to an opportunity for the cloud market.

Businesses have changed the way they have been perceiving about cloud. Key drivers for cloud adoption are:

  • business growth & transformation,
  • security
  • workplace productivity

NASSCOM’s 2022 Cloud Study, conducted in collaboration with EY, seeks to understand the evolving role of cloud in Indian enterprises. The survey reveals that these drivers remained consistent across industries and size of organization (Figure 1) 1. Hence organizations have now started viewing cloud as an essential part of their business strategy.

Figure 1: Increase in Cloud Adoption by size of organizations

At the onset, only the IT/ITeS sector industries were focussed on cloud models. But post 2019, other industries like Healthcare and Banking & Financial Services (BFSI) moved towards digital transformation and quickly adopted cloud. The NASSCOM-EY survey also reveals that about 78% of respondents from the IT sector adopted cloud whereas 53% of companies from the other two sectors have moved to cloud1.

Figure 2: Top Cloud adopters by Industry

But why was this sudden increase in adoption of cloud taking place? On being asked most of the respondents i.e. about 75% said they did it to facilitate remote working for their employees. Other reasons include:

Figure 3: Reasons for sudden increase in Cloud adoption

Even when cloud is out of the equation, upgrading and migrating data systems with keeping a business running is a big challenge. But then again ensuring you have the right real-time capabilities that will pair with cloud migration and modernization will remove some of the roadblocks and ensure that the business is able to gather actionable insights and other benefits from its investment.

40% of Indian organizations will implement dedicated cloud services either on-premise or in a service provider facility by 2024, in response to performance, security, and compliance requirements, as per the IDC report titled ‘FutureScape: Worldwide Cloud 2022 Predictions – India Implications’2. So when are you migrating to cloud?

Sources:

  1. CLOUD AS A CATALYST FOR BUSINESS TRANSFORMATION: 2022 TRENDS (https://community.nasscom.in/communities/cloud-computing/cloud-catalyst-business-transformation-2022-trends)
  2. 40% of Indian organizations will implement dedicated cloud services by 2024: IDC (https://www.livemint.com/technology/tech-news/40-of-indian-organizations-will-implement-dedicated-cloud-services-by-2024-idc-11645683474028.html)
  3. Cloud Migration Is a Boon to Operations. But It Creates a Perfect Storm of Data Challenges (Cloud Migration Is a Boon to Operations. But It Creates a Perfect Storm of Data Challenges (datanami.com))

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Current Focus Areas: IT Services, AIOps, 5G, Cloud, Project Management. Also specialises in Application Rationalization, Cost Optimization, Benchmarking, Report writing, and Market Research.

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