Pune: When the Covid-19 pandemic hit companies last year, it accelerated the digital journey for most organisations. Indian enterprises have just scratched the surface of the potential that Cloud technology provides, according to a new paper by CII and Deloitte. However, they need to brainstorm on how to build cloud in their strategies to capture the maximum value, and put cloud at their core.
“For enterprises today, no discussion on digital transformation can happen without mentioning Cloud. Days are gone when Cloud was seen just as an infrastructure play or a cost saving lever; instead, the reason for Cloud adoption could be cost, innovation, growth, speed to market, standardization, agility, security or resilience or at best a combination of these,” said Anoop Nambiar, Partner, Deloitte India.
Business model innovation, driven by changing customer needs will be a big driver of Cloud adoption in India. Key factors driving this are:
Targeted approach: Organisations need to offer more differentiated experiences to connect with and attract customers. They need to personalise offers to suit customers’ interest after analysing metadata
Internet of Everything: Data engineering and integration points with various devices are exploding as the need to differentiate and create a seamless experience for customers is helping companies generate a higher top-line growth.
Rise of the Citizen Developer: Creating solutions/platforms that allow non-technology people in an organisation to have a point of interface with customers has become a new growth driver for cloud services.
Changes in customer consumption patterns: Most startups now focus on the hinterlands of India—the real “Bharat” where e-commerce is driving the growth of cloud.
Barriers to cloud adoption
Organisations are not keen on going the cloud way because of a number of challenges. The top barriers are:
Integrating cloud platforms used within an organisation: This process requires overcoming several issues like network connectivity; security etc, and failure to do so may lead to running parallel IT operations
Data security and privacy: Public cloud environments require data to be stored on a shared infrastructure managed by Cloud Service Providers (CSPs), representing a fundamental shift from traditional IT practices
Multi-tenancy: It also hinders cloud adoption as CSPs use it to optimise server workloads and reduce costs by sharing workloads across multiple environments
Compliance and regulatory risks
- Moving to a public cloud platform requires giving some level of compliance controls to a cloud service provider.
- Many organisations find it a challenging situation as CSPs do not negotiate their standard terms and conditions.
- Different kinds of clients use public cloud environments, and providers do not customise services to meet unique or specialised requirements.
- Vendor lock-in: Financial penalties and strict contracts with CSPs are a hurdle, along with a lack of coordinated cloud standards across cloud service providers.
- Zero cost savings: Some organisations do not see any cost savings and some even experience cost escalations because they don’t understand the workloads suitable for Cloud environments.