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Industry Cloud Platform: The Silent Digital Transformation Wave
Industry Cloud Platform: The Silent Digital Transformation Wave

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Industry Cloud Platform: The Silent Digital Transformation Wave

2023-24 witnessed discussions and implementation of strategic ground-breaking technologies that can change the way operations are carried out - one of them being “Industry Cloud Platform”.

Gartner defines an Industry Cloud Platform (ICPs) as a combination of software, platform and infrastructure-as-a-service (IaaS) which offers customised solutions to various industry verticals. The ICPs mostly operate on the public cloud and assist its users in managing their data load with more agility. They also help players strategize their digital transformation goals and create an edge over their competitors, as ICPs are neither a copy nor split (spun)-off edition of cloud. Gartner expects that by 2027, more than 70% of organisations will adopt ICPs to expedite their business goals, from less than 15% observed in 2023 and firms familiar with the concept of ICPs will be early adopters of the technology.

Source: Gartner

Previously, cloud platforms were unable to perform advanced analytics or operate on AI models for possible outcomes.  Hence, organisations had to design and develop cloud platforms to meet their requirements, thereby increasing the cost of deploying cloud platforms. But ICPs are built on software-as-a-service (SaaS) and infrastructure-as-a-service (IaaS) with customised innovative components for expediting the overall operational performance by reducing the time to market new products and services or solutions. ICPs can also seamlessly run on technologies such as 5G, IoT, data analytics, AI and others. This seamless connectivity will enable cross functional teams to share data in a secured manner, thereby creating agility in the decision-making ecosystem.

Players operating in Industry Cloud Platforms (ICP)

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Source: Global Market Insights; Wipro and Adani Industry Cloud

Some of the sectors where the Industry Cloud Platform is deployed:

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Benefits and challenges which organisations can face while adopting ICPs are:

Benefits:

  • High flexibility: Offers businesses to easily adopt to evolving customer needs to scale-up operations and improve agility
  • Customisation of solution: USP of offering industry specific solutions which are in-line with the regulatory process or approvals
  • Swiftness to market solution: Standardised regulatory templates and customised pre-made solutions reduces the time to develop and market a new solution
  • Resource optimisation: Has pay-per-use facility and sharing of data cross functional domains helps in reducing heavy investments in operations
  • Improved synergies across departments: Promoting cross functional interactions for driving innovations and value creations

Challenges:

  • Data migration: Connecting ICPs with existing client infrastructure is bit tedious job and needs proper planning from the ICP experts. Any miscalculation will lead to human error resulting in loss of vital data
  • Cyber-attacks: Weak firewall or accessing any malicious link from an industrial system will be a soft target for hackers. Since, ICPs are interconnected accessing and stealing organisational data will be easy for the hackers in cyber-attacks
  • Policy and compliance: Regulations like data protection or GDPR acts as a constraint in implementation of ICPs. As ICPs mainly works on accessing and sharing data cross functionalities, hence selecting vendors who are aligned with the rules and regulations becomes very crucial

Industry Cloud Platforms are transforming business operations by improving the speed of cloud adoption, digital transformation, marketing of new products and services etc. thereby creating a competitive edge over others. The challenges in the implementation of ICPs will exist, but an effective implementation of ICPs is very crucial for fostering innovation and smoother implementation of new technologies and policies.

References:

  1. Gartner: https://www.gartner.com/en/articles/what-are-industry-cloud-platforms
  2. Comidor: https://www.comidor.com/knowledge-base/low-code-platform/industry-cloud-platforms/
  3. e-core: How Industry Cloud Platforms are transforming enterprises for the future
  4. Global Market Insights: Industrial Cloud Platform Market Size, By Deployment, By Type, By Components, By Applications, By End-users, Forecast 2024-32
  5. AWS Industrial Cloud Case Study: https://aws.amazon.com/solutions/case-studies/vw-industrial-cloud/
  6. Wipro: Industry Cloud
  7. Adani:https://in.linkedin.com/company/adani-icnoc#:~:text=About%20us,the%20strengthening%20of%20critical%20infrastructure.

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Dr Apurva Phanshikar
Business Analyst - Research

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