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DIGITAL ENTERPRISE TRANSFORMATION, INDIA PARADIGM: WORKFLOW DISTRIBUTION ON CLOUD & TRADITIONAL DATA CENTERS (DCs)
DIGITAL ENTERPRISE TRANSFORMATION, INDIA PARADIGM: WORKFLOW DISTRIBUTION ON CLOUD & TRADITIONAL DATA CENTERS (DCs)

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“The cloud services companies of all sizes; the cloud is for everyone. The cloud is a democracy.”

- Marc Benioff, Founder, CEO and Chairman of Salesforce

This is the fifth of the multi-part blog series titled ‘DIGITAL ENTERPRISE TRANSFORMATION, INDIA PARADIGM’ and covers the State of Technology Adoption in India from the perspective of distribution of workflows between cloud and traditional DCs.

My earlier blog (DIGITAL ENTERPRISE TRANSFORMATION, INDIA PARADIGM: BUSINESS PROCESS DIGITALIZATION) set the context for my present and upcoming blogs which capture the key insights on digital enterprise transformation from an Indian end-user enterprise perspective. These insights have been drawn from the NASSCOM-Avasant “Digital Enterprise Survey” conducted in May’2022. Based on the results derived from the survey, NASSCOM and Avasant formulated the “The Digital Enterprise Maturity Index,” which forms a key component of the “DIGITAL ENTERPRISE MATURITY 3.0: Boosting Business Resilience through Technology” Report published in July 2022.

KEY INSIGHTS ON DISTRIBUTION OF WORKFLOWS BETWEEN CLOUD AND TRADITIONAL DCs:

1. Indian enterprises keeping up pace with global peers on cloudification

The share of workflows managed on cloud, spanning private, public, and hybrid cloud, is neck-to-neck between Indian and global enterprises with both kinds of companies managing nearly two-thirds of their entire workflows on Cloud. Moreover, private and public cloud models seem to be the most preferred choices in cloud adoption for both Indian and global enterprises, followed by hybrid cloud, on-prem DCs and managed DCs in that order.

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Notably, in terms of workflows residing on DCs, Indian businesses have a slightly higher percentage residing on managed DCs as compared to their global peers, while the reverse seems to be true with respect to on-prem DCs.

2. Key levers intensifying Cloud Adoption in India

In case of Indian enterprises, the value add from cloud is anticipated to be $310-$380 Bn to India’s GDP in 2026, accounting for ~8% of GDP and unlocking ~14 Mn direct and indirect employment opportunities. Further, India’s public cloud market estimated to grow at a 44% CAGR over 2016-2021 and reach $5.6 Bn in 2021E has further potential to grow at a CAGR of 27% in next five years (3X growth by 2026).

Some factors that bode well for Cloud adoption/acceleration in India are as follows:

  • 5.6X rise in Software-as a-Service (SaaS) investments from $800 Mn in 2018 to ~$4.5 Bn in 2021
  • $3.8 Bn worth investments attracted by the Indian data center industry in 2021
  • Under the Data Centre Scheme, the Government aims to attract $4 Bn of investments by 2025 in the data center industry and aims to provide 3-4% of capital investment as incentive accompanied with faster approvals
  • Infrastructure status provided to data centers in Budget 2022 is anticipated to improve credit availability at lower rates and flexibility on power sourcing

3. Cloudification offers a plethora of benefits and yields impactful outcomes

Indian enterprises are increasingly leveraging various cloud applications such as Infrastructure as a Service (IaaS), Platform as a Service (PaaS), Software as a Service (SaaS) and other segments like Business Process Services (BPaaS), Desktop as a service (DaaS), Disaster Recovery as a Service (DRaaS) and Cloud Management & Security Services to reap the multifold benefits of cloud adoption/acceleration like reduction in time-to-market for new products and services, enhanced customer experience (CX), cost optimization, greater productivity, collaboration, and so on.

For instance, SBI General Insurance, wanted to build a single customer view to maximize customer life cycle value and improve CX but the marketing data of customers resided in multiple systems creating data silos. By implementing a SaaS solution that integrates on-premise transactional data, analytical/ behavioral insights, and real-time interaction data to personalize conversation between the insurer and customer, the India-based insurance company has been able to enhance customer engagement by 20-25% resulting in 4-8% increase in conversions.

My forthcoming blogs will endeavor to assess key trends focusing on digital talent, hybrid work models, and different dimensions of digital maturity with respect to Indian end-user enterprises.

For more information on Digital Transformation and Digital Enterprise Maturity, please refer to the report downloadable at the following links:

NASSCOM Website: https://nasscom.in/knowledge-center/publications/digital-enterprise-maturity-30-boosting-business-resilience-through

NASSCOM Community:https://community.nasscom.in/communities/digital-transformation/digital-enterprise-maturity-30-boosting-business-resilience 

Previous versions of the report can be downloaded from the following links: 

A NEW ORDER OUT OF CHAOS-BUILDING A FUTURE READY ORGANISATION - https://community.nasscom.in/communities/digital-transformation/new-order-out-chaos-building-future-ready-organisation

REIMAGINING INDIAN ENTERPRISES' TECH LANDSCAPE IN A DIGITAL-FIRST WORLD – A NEW ORDER OUT OF CHAOS- https://community.nasscom.in/communities/digital-transformation/reimagining-indian-enterprises-tech-landscape-digital-first 

DEFINING THE DIGITAL ENTERPRISE - MAR 2020 -https://community.nasscom.in/communities/digital-transformation/defining-the-digital-enterprise-mar-2020.html  

Sources:

  1. DIGITAL ENTERPRISE MATURITY 3.0 - Boosting Business Resilience Through Technology
  2. NASSCOM-OliverWyman ‘Future of Cloud and Its Economic Impact: Opportunity for India’ Report

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Prerna Buckshee
Manager - Research

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