Cloud – The business value driver in the new normal | nasscom | The Official Community of Indian IT Industry

Terms of use

Terms of Use

The use of this site and the content contained therein is governed by the Terms of Use. When you use this site you acknowledge that you have read the Terms of Use and that you accept and will be bound by the terms hereof and such terms as may be modified from time to time.

All text, graphics, audio, design and other works on the site are the copyrighted works of nasscom unless otherwise indicated. All rights reserved.
Content on the site is for personal use only and may be downloaded provided the material is kept intact and there is no violation of the copyrights, trademarks, and other proprietary rights. Any alteration of the material or use of the material contained in the site for any other purpose is a violation of the copyright of nasscom and / or its affiliates or associates or of its third-party information providers. This material cannot be copied, reproduced, republished, uploaded, posted, transmitted or distributed in any way for non-personal use without obtaining the prior permission from nasscom.
The nasscom Members login is for the reference of only registered nasscom Member Companies.
nasscom reserves the right to modify the terms of use of any service without any liability. nasscom reserves the right to take all measures necessary to prevent access to any service or termination of service if the terms of use are not complied with or are contravened or there is any violation of copyright, trademark or other proprietary right.
From time to time nasscom may supplement these terms of use with additional terms pertaining to specific content (additional terms). Such additional terms are hereby incorporated by reference into these Terms of Use.

Disclaimer

The Company information provided on the nasscom web site is as per data collected by companies. nasscom is not liable on the authenticity of such data.
nasscom has exercised due diligence in checking the correctness and authenticity of the information contained in the site, but nasscom or any of its affiliates or associates or employees shall not be in any way responsible for any loss or damage that may arise to any person from any inadvertent error in the information contained in this site. The information from or through this site is provided "as is" and all warranties express or implied of any kind, regarding any matter pertaining to any service or channel, including without limitation the implied warranties of merchantability, fitness for a particular purpose, and non-infringement are disclaimed. nasscom and its affiliates and associates shall not be liable, at any time, for any failure of performance, error, omission, interruption, deletion, defect, delay in operation or transmission, computer virus, communications line failure, theft or destruction or unauthorised access to, alteration of, or use of information contained on the site. No representations, warranties or guarantees whatsoever are made as to the accuracy, adequacy, reliability, completeness, suitability or applicability of the information to a particular situation.
nasscom or its affiliates or associates or its employees do not provide any judgments or warranty in respect of the authenticity or correctness of the content of other services or sites to which links are provided. A link to another service or site is not an endorsement of any products or services on such site or the site.
The content provided is for information purposes alone and does not substitute for specific advice whether investment, legal, taxation or otherwise. nasscom disclaims all liability for damages caused by use of content on the site.
All responsibility and liability for any damages caused by downloading of any data is disclaimed.
nasscom reserves the right to modify, suspend / cancel, or discontinue any or all sections, or service at any time without notice.

For any grievances under the Information Technology Act 2000, please get in touch with Grievance Officer, Mr. Anirban Mandal at data-query@nasscom.in.

New

See all

No notification found.

Cloud – The business value driver in the new normal

Neha Jain

@nehajain

March 24, 2021

Cloud Computing

1340

In my last blog “Acquisitions – The growth story for Indian IT services Industry in 2020” I discussed how acquisitions were the key growth strategy in 2020 for the Indian IT Services segment. Taking that discussion forward let’s talk about another focus area that was the front runner in the strong deal pipeline announced by the Indian IT majors – Cloud.

Cloud – The 1 trillion value* up for grabs

Before we dwell on the Indian IT Services’ cloud focus there is something that we know - the recent McKinsey study which highlighted cloud as a major value creator. Which in-turn highlights the immense potential cloud has considering most companies currently are scratching only the surface.

* Run-rate EBITDA across Fortune 500 companies as up for grabs in 2030

Case Example - Moderna deriving tremendous value from cloud

In January 2020, Moderna CEO Stéphane Bancel made the decision to build his mRNA research-and-development platform on public cloud to accelerate therapeutic discovery and development. When the COVID-19 pandemic hit, this strategy proved prescient as the company was well positioned to quickly design research experiments and to harness its automated laboratory and manufacturing processes and enhanced drug-discovery pipeline. Notably, cloud was partly responsible behind’s Moderna’s ability to deliver the first clinical batch of its vaccine candidate (mRNA-1273) to the US National Institute of Health for phase one trials just 42 days after the initial sequencing of the virus According to Bancel it was possible “because you don’t have to reinvent everything, you just fly”.

Cloud can unlock substantial value for technology use cases

Source: McKinsey

Cloud Adoption – A growing opportunity for Indian IT Services

Covid-19 pushed significant cloud adoption across enterprises as they were forced to work remotely. Notably, organizations that were already on the cloud faced lower disruption in businesses compared to ones that were not on the cloud.

Source: McKinsey

Consequently, in a recent survey by Google and IDG improving remote working/collaboration capabilities and migrating workloads to the cloud were the top priorities that witnessed acceleration/ introduction across a majority of organizations.

Source: Google IDG Survey of A survey of 2,000 IT leaders shows an acceleration of multicloud, analytics, sustainability, and security during Oct-Nov 2020

This focus on the cloud across enterprises has made cloud a significant growth opportunity for IT services providers across the globe. Consequently, the year saw companies such as Accenture which announced the launch of “Cloud First” announcing $3 billion investment to help clients become cloud-first and accelerate their digital transformation, while IBM announced split of its cloud business as a separate entity to focus on $1 trillion hybrid-cloud opportunities.

Indian IT services companies also increased their focus on strengthening their cloud practice through partnerships, acquisition as well as restructuring.

Infosys and Wipro partnered with IBM for hybrid cloud.
Infosys acquired GuideVision, Blue Acorn iCi; while Wipro acquisitions of 4C are just a few examples in the cloud space.
TCS streamlined its Cloud services business into five strategic units – Amazon Web Services (AWS), Azure, Google, TCS’ own private cloud arm, and a cloud consulting arm. While HCL Technologies had set-up a dedicated business unit for Google Cloud with over 1,300 professionals.

The Road Ahead

Cloud has become a key focus area in the IT infrastructure segment, which is also reflected in the fact Cloud and Security Services are witnessing a price uptick, while traditional infrastructure services are seeing a pricing pressure.

Source: Everest Group

Consequently, cloud and related services are expecting to witness strong demand in the coming years.

Cloud system infrastructure services spending is expected to grow from $44 billion in 2019 to $81 billion by 2022
Cloud migration services will remain a key growth opportunity for Indian IT Services providers which is expected to reach $515.83 billion by 2027, growing at a CAGR of 24.8% from 2020 to 2027.

Cloud was the key theme accelerated by the pandemic, to read more on the key trends that shaped-up the Global and Indian IT Services Industry download NASSCOM’s Strategic Review – “Technology Sector In India 2021- New World: The Future Is Virtual”.

Cloud migration Cloud Infrastructure TCS #wipro #reskillingseries #digitaltransformation IBM IT Services; TEchM; Infosys; Acquisitions; Digital

Disclaimer

That the contents of third-party articles/blogs published here on the website, and the interpretation of all information in the article/blogs such as data, maps, numbers, opinions etc. displayed in the article/blogs and views or the opinions expressed within the content are solely of the author's; and do not reflect the opinions and beliefs of NASSCOM or its affiliates in any manner. NASSCOM does not take any liability w.r.t. content in any manner and will not be liable in any manner whatsoever for any kind of liability arising out of any act, error or omission. The contents of third-party article/blogs published, are provided solely as convenience; and the presence of these articles/blogs should not, under any circumstances, be considered as an endorsement of the contents by NASSCOM in any manner; and if you chose to access these articles/blogs , you do so at your own risk.

Neha Jain

Senior Analyst

Neha Jain

Cloud Collaboration: How Media Team...

dilipguddappa