Why is NOW the Right Time to Accelerate Digital Transformation via Cloud Adoption?
A lot has transformed since the onset of the COVID-19 pandemic in the way people work and the things people do., The pandemic has led to many disruptions worldwide and has created drastic changes in our lives, but it has also created tremendous opportunities in many areas. The pandemic has changed the way we work and the ways we go about our daily activities. It has fueled innovation worldwide, giving rise to brand-new ideas and a new way to continue living our lives.
The move towards conducting business entirely on online platforms as a response to the new normal has increased our dependency on technologies now more than ever, leading to an increased rate of digital adoption. According to a global survey by McKinsey, their partner companies have increased digitization for their clients and internal operations by 4 years. The share of digitally enabled products in their portfolios has augmented by an impressive 7 years, and this is just the beginning of their digital transformation journey.
The lockdowns accompanied by many months of remote working have pushed organizations to adopt Cloud solutions in their business strategies to accomplish business goals. In an interview, Satya Nadella, CEO of Microsoft, stated that the company had witnessed two years of digital transformation in just two months when their clients started embracing Cloud solutions to combat COVID-19 challenges.
COVID-19 and Accelerated Cloud Adoption – The Reasons Behind the High Adoption
The cloud can accommodate large amounts of data to generate quality services and business operations while reducing the cost and the complexities of setting up infrastructure, thus making it a critical component for seamless continuity for all businesses. Cloud offers many benefits such as cost optimization, flexibility, quick deployment, and adaptation.
This global crisis created by the pandemic proved to be an enormous opportunity for the cloud market, leading the entire world to accelerate Cloud adoption across industries. According to a recent study by Bloomberg NEF, spending on Cloud infrastructure is expected to increase from $1.3 billion in 2019 to $12.5 billion by 2030. Here are a few important reasons for the rapid shift to Cloud computing:
Business Continuity – Organizations with robust IT Cloud infrastructure did exceedingly well compared to businesses with no Cloud, who were severely affected by the pandemic. The two critical factors to ensure business continuity, security, and quick access to protected data, were quickly met by the Cloud, making it the perfect choice of technology.
Rise of Remote Working – The work-from-anywhere culture became the new norm after lockdowns hit our cities. Cloud computing proved to be the vital tool that allowed work continuity with remote workforces and ensured seamless collaboration between teams situated around the globe. Companies invested and implemented capabilities using the Cloud at an accelerated rate during the COVID-19 crises. A study by Synergy Research Group discovered that businesses spending on Cloud infrastructure services increased by 35% to $130 billion in 2020, and it hit $29 billion in Q1 of 2021 alone – up by 37% from Q1 of 2020. Connecting and collaborating with team members and clients is now a piece of cake, thanks to the rise of various virtual meeting platforms like Zoom, Microsoft Teams, Google Meet, and WebEx that leverage the Cloud enormously.
Rise of Online Business – E-commerce, E-learning, Online Delivery, Telehealth, and Video-on-demand – these services have resulted in a massive increase in data that needs to be collected, processed, and stored, along with the rise in consumers. *As per data from Statista, the Online Food Delivery segment is growing at a CAGR (Compound annual growth rate) of 9.89%, with a projected market size of USD 441 billion by 2025.
Rise of Cloud Solution Providers – Cloud computing has a vital role in ensuring seamless business operations in these unprecedented times. The rise in the adoption of Cloud has naturally led to an increase in Cloud solution providers who are customizing cloud solutions to suit the business requirements and rising business demands.
Cloud Security – There are multiple ways a secure Cloud implementation can be done, depending on the Cloud computing model that is being used. Building a Cloud security strategy can help organizations mitigate all the possible risks at play. Usually, the files stored and processed on Cloud servers are encrypted with multiple layers, making it difficult for cybercriminals to hack into the system. In addition, Cloud providers are making significant investments in Cloud security innovation.
Possible Cloud trends we can see in the future
AI Engineering in Cloud Computing – The rise of Cloud computing and AI is interconnected. With extensive Cloud application and data processing, Machine Learning and Artificial Intelligence will be required to increase the efficiency of Cloud computing and lead to quicker decisions and reactions to business problems.
Hybrid Cloud – Hybrid Cloud is set to gain pace through the coming year. Companies like Microsoft, Amazon, and IBM are already making significant investments in Hybrid Cloud infrastructure.
Multi-Cloud Offerings – There is an expectancy of an increase in Multi-Cloud and joint cloud offerings. The purpose of having a single cloud platform was to receive end-to-end cloud services from a single cloud company, but as Multi-Cloud environments evolve and have much more to offer, its demand continues to increase.
Serverless Computing – Serverless is a native Cloud development model that empowers developers to build and deploy applications without managing servers. Serverless is expected to revolutionize micro-service architectures and has been named one of the top 5 fastest-growing PaaS cloud services for 2020.
McKinsey stated in an article that (roughly) only 15% of an enterprise workload is utilized by the Cloud, leaving room for Cloud adoption in 85% of the business operations. COVID-19 pandemic has beneficially influenced the shift to Cloud environments to help us adapt and quickly bounce back from the chaotic operational challenges of the pandemic.
Combining the suitable deployment model, the right Cloud strategy, and the right solution provider(s) can help businesses and enterprises solve the most pressing business challenges. As you work towards your plans and goals for 2022, include and align with Cloud computing strategies as it will surely help future-proof your business.
Visit our Cloud services page to discover how Opteamix can help your organization choose the right strategy based on your business objectives and requirements.
Talk to us for a quick assessment