Over the last two years, we have witnessed how the global pandemic is pushing many organizations to acquire and deploy new digital capabilities. The emergence of new-age technological trends like data analytics, artificial intelligence (AI), cloud services, and digital security is now transforming business processes.
Among the key enablers of digital transformation, the cloud has emerged as a prerequisite for business survival as other trending technologies require massive storage space and computational power, which is enabled only through the cloud.
Gartner forecasts that end-user spending on public cloud services is likely to grow by 23.1% from 2020 to 2021.
With cloud computing becoming ubiquitous in various sectors, companies are adopting a hybrid cloud model which has numerous benefits, embedded connectivity, and intelligence being the most obvious ones. Migrating to this new platform also ensures data supremacy, cost optimization, and information security.
A report by Dell states that companies that invest in big data, cloud, mobility, and security can enjoy up to 53% faster revenue growth than their competitors.
With these benefits, cloud computing encourages organizations to adapt their strategies to a new digital era. Keep on reading to know how cloud computing has brought an opportunity to transform business models, operational processes, and customer experiences.
The Role of Cloud Computing in Digital Transformation
Going by the Wipro FullStride Cloud Services report, “Cloud is more than cost savings or agility play. It’s a driver of business transformation and growth.”
By transferring massive data volumes that have been traditionally stored on internal servers to an Internet-based network, cloud computing has enabled virtual handling, maintenance, analytics, and management of the collected data.
The Strong Linkage of Cloud Computing to Digital Transformation
The State of Digital Business Transformation report talks about the cloud as one of the top five skills required for the digital transformation of business enterprises. There are numerous ways through which cloud computing ushers in digital transformation by providing a robust infrastructure upon which businesses can rebuild service offerings, databases, and more. By offering the flexibility and speed for storing and managing data online, it has reshaped the way organizations conduct their daily operations, serve their clients, and innovate.
Needless to say, the digital transformation of a company cannot be achieved overnight. It requires strategic planning and consistent execution. The cloud provides the necessary tools for capturing and analyzing the fast-changing needs of the consumers, along with the ability to scale up (or down) business operations. Further, by providing the business agility and environment for testing future models and hypotheses, it can help to re-caliber the digital transformation strategy.
How is digital transformation impossible without the cloud? Let us see next.
Digital Transformation is Impossible without Cloud
Digital tools and technologies have largely been able to leverage the power of big data for improving business operations. For instance, technology-enabled companies like Google, Amazon, and Walmart have used data to bring automation to their business processes. Additionally, these brands have utilized the power of cloud computing to store, deploy, and manage their applications and services.
A well-known example of how a company has harnessed the advantage of cloud computing for its digital transformation is Netflix. One focus area is cloud-based AI services for improving its marketing appeal. Moreover, by using services from AWS and Open Connect, it has expanded its global network of servers
Like Netflix, many other companies are adopting cloud computing to remain ahead in this uncertain COVID-impacted business environment. For instance, it is difficult to estimate how devastating the economic impact of COVID-19 would have been, had it not been for cloud computing enabling the transition to the remote working model, by providing remote collaboration tools and virtual spaces for online meetings.
Further, with the vast availability of cloud-stored data, companies can gain a deep insight into their customer behavior. Cloud-based AI applications, such as Sales Cloud, Oracle CRM, and Zendesk are also helping companies to build great and profitable relationships with target customers. Plus, it has been enabling companies to collect data at any scale, drive experimentation, iterate, and redefine their advertising campaigns.
Effectively, cloud computing has enabled digital transformation by connecting people, data, and processes through the following:
- Innovations in business operations
- Shift to data-driven decision-making
- Opportunities to design new customer experiences
- Improved market infiltration
How can business enterprises maximize the benefits of the cloud in their digital transformation initiatives? Let us discuss that next.
Maximizing the Benefits of the Cloud for Your Business
While adopting a cloud-based architecture can secure future competitive advantage for any company, a rushed approach towards cloud implementation prevents companies from scaling up their digital transformation journey in an effective way.
This is a reason why many companies have not achieved their desired results from their cloud initiatives. How do cloud-adopting companies follow the right approach to maximize the full value of the cloud for their business growth? Here are a few pointers:
- Cloud Migration: This involves selecting the right cloud provider that can help transfer the company’s data from its on-premise environment to the cloud.
- Get help from hyper-scalers: Public cloud hyper-scalers can boost digital transformation and create value for a business by offering access to infrastructure through the successful IaaS cloud model.
- Re-architecting: This involves adapting to the evolving demand for computational speed, security, and agility. Rearchitecting of the existing cloud service model can unlock plenty of tangible benefits.
- Innovating: This involves the strategic use of AI, data, and advanced analytics to facilitate rapid innovation and experimentation.
Surpassing its status as an emerging technology, cloud computing has become a mainstay and a necessity for organizations looking to adopt digital transformation. But shifting from on-premises to cloud computing is a complex process that requires careful planning and execution.