Cloud and data to be the cornerstone of businesses in 2024

Mr. Rakshit Bhatt, Head, Cloud Business Group, Redington Limited

In recent years, technology has advanced significantly, and one of the fundamental aspects of this advancement is cloud computing. From its initial stage as a fledgling concept, the cloud has become an essential tool for businesses of all sizes and industries. Cloud technology can add almost 8% to India’s GDP and create 14 million jobs by 2026. Therefore, as the country strives to become a US$ 1 trillion digital economy, cloud computing can transform its technological landscape, making it more resilient and inclusive.

The simultaneous evolution of several key technologies has fuelled Cloud’s transformation. For example, high-bandwidth connections have enabled seamless data transfer and access to cloud resources, making it a viable option for businesses everywhere. Cloud computing has also allowed the sharing of physical hardware resources, creating a cost-effective and scalable cloud environment. Furthermore, the emergence of Artificial Intelligence (AI) and Machine Learning (ML) has revolutionised cloud management by enabling automation, optimisation, and enhanced security within the cloud infrastructure.

Role of Cloud Technology Providers, Distributors & VAR’s (CTPDV): Cloud Distributors & VAR’s are playing a critical role in adoption covering the Mid enterprise & SMB space in India. The to-be unicorns of tomorrow, ISV’s are serviced within this ecosystem. The adoption challenges for these customers are similar to a large enterprises with the added challenge of executing POC’s and enabling funds for the same. To answer this need, cloud technology providers & VAR’s are adopting to solution driven approach, enabling centre of excellence(s) for enablement and opening experience centres for this thriving ecosystem.

CTPDV consortium should also be looked at as an enabler for the right price point to adopt these services and make them available to end customers.

Reasons Businesses Move to the Cloud

The rise of cloud computing has fundamentally altered how businesses operate, data is stored, and applications are accessed. This dynamic interplay has paved the way for businesses to embrace the cloud for several compelling reasons.

Building on Demand: Platform as a Service (PaaS) is a cloud computing offering that enables businesses to create custom solutions tailored to their specific requirements. For instance, a construction firm that needs software to manage projects, track inventory, and collaborate with clients can quickly and efficiently build this application using a PaaS platform instead of starting from scratch. This eliminates the need for significant upfront investment in hardware and software infrastructure and allows businesses to focus on their core competencies.

Seamless Integration: Software as a service (SaaS) is another cornerstone of cloud computing. SaaS applications are easily accessible online, eliminating the need for local installations and ongoing maintenance. This makes it easier to adopt new technologies and reduces IT overhead. Additionally, Most SaaS providers have pre-built connectors, which makes data exchange between different applications seamless. This creates a more interconnected digital environment, improving collaboration and workflow efficiency. For instance, a marketing team that needs customer relationship management (CRM) software can subscribe to a SaaS-based CRM instead of purchasing and installing a traditional CRM system, thus providing them with a readily available solution that can be accessed from any device.

Cloud Ecosystems: Cloud marketplaces are a flourishing aspect of cloud computing. These platforms connect end-users with various solutions, from productivity tools to industry-specific applications. This empowers businesses to discover and deploy the technologies that best suit their needs. Cloud marketplaces also present a tremendous opportunity for independent software vendors (ISVs) to reach new audiences. ISVs can leverage the scalability and reach of cloud platforms to distribute their software to a global market, fostering innovation and competition within the tech industry.

The Role of AI in Cloud: The combination of AI, specifically Generative AI, with cloud computing, can bring transformational changes and significant implications for the future. This convergence offers the possibility of automating tasks, improving decision-making, and unlocking new levels of efficiency. For instance, cloud-based AI solutions can analyse enormous amounts of customer data to personalise marketing campaigns or predict equipment failures before they occur. However, businesses must have a robust data strategy to leverage AI's power. A clear data collection, storage, and analysis plan is crucial for training and deploying effective AI models.

Optimising Workforces: It is important to consider the adoption of Generative AI for businesses in general and individual employee roles. For instance, imagine an AI-powered writing assistant for content creators or a sales forecasting tool for sales representatives. Businesses can significantly enhance employee productivity by implementing AI solutions tailored to specific job functions. However, the success of such implementations depends on measuring the return on investment (ROI) of AI tools. It is imperative for businesses to track key metrics such as output volume, error rates, and customer satisfaction to demonstrate the value of AI and ensure that investments are driving expected productivity gains.

Looking Ahead: Trends and Developments in 2024

As of 2023, the global cloud computing market is estimated to reach almost US$ 500 billion. With an expected CAGR of over 18%, it is projected to surpass US$ 1 trillion by 2030.

Cloud technology provides an excellent opportunity to leverage modern technology while also addressing the issue of accumulated technical debt within many companies. As technical debt is eliminated, so is financial debt, a significant burden associated with maintaining outdated hardware and applications. This shift significantly departs from outdated and unsupported internal hardware and software infrastructures.

As we step into 2024, several trends are expected to shape the future of the cloud:

Hybrid and multi-cloud adoption: Businesses will increasingly adopt hybrid cloud models, combining the flexibility of public cloud with the security and control of private cloud environments. This allows them to leverage the best of both worlds, catering to specific application needs. Organisations are also expected to explore multi-cloud strategies to leverage the best-of-breed solutions from different cloud service providers. This approach allows them to avoid vendor lock-in and benefit from the unique strengths of each provider.

Financial operations (FinOps): As cloud services expand and become increasingly complex, many organisations are adopting FinOps. FinOps is a practice that brings financial responsibility to the fluctuating spend model of cloud computing. By implementing FinOps, organisations can gain better visibility into their cloud expenses and leverage this knowledge to manage costs effectively and allocate resources more efficiently.

Serverless computing: A rising trend in the cloud industry is the adoption of serverless computing, where the cloud provider runs the server and manages machine resources dynamically. This approach allows developers to focus more on their core product than managing and operating servers or runtimes in the cloud or on-premises. Serverless architectures are event-driven, meaning the cloud provider manages the computation entirely and can execute the developer's code in response to real-world events. This feature makes it highly efficient for building scalable, fast-evolving applications.

Integration of edge computing: The integration of edge computing with the cloud will enable real-time data processing and analysis at the source, driving applications like IoT and autonomous systems. This will be crucial for industries like manufacturing and logistics, where real-time data insights are critical for operational efficiency and decision-making.

In 2024, companies that adopt cloud-based solutions and effectively use data analytics will have a significant advantage over their competitors. By utilising the potential of cloud and data analytics, companies can unlock new opportunities for growth, innovation, and customer satisfaction, thereby cementing their position as industry leaders.