The Decade Long Journey of Cloud - How It will Shape the Future of Technology in India
Internet speeds and penetration remain the main bottleneck for cloud expansion in the country, leading to pricing issues.
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With the emergence of virtualized, private network connections, offered by telecommunication companies in the 1990’s, the first rumblings of another technology revolution began to take seed – the cloud.
IT intelligence and analysis firm Gartner Says by 2020 "Cloud Shift" Will Affect More Than $1 Trillion in IT Spending, making cloud computing ‘one of the most disruptive forces of IT spending since the early days of the digital age’.
Why cloud is the future?
Cloud computing is the at the heart of innovations that are defining the technology of the future – whether it is machine learning, artificial intelligence the Internet of Things or big data analytics, cloud is the core requirement enabling the expansion of these technologies Today, there are more than 13 billion interconnected digital and electronic devices in operation globally, the equivalent of nearly 2 devices for every human on earth. With billions of people connected to the internet, the number of connected devices is set to exceed 50 billion by the year 2020. These include not just enterprises but consumer devices as well. Only cloud has the capacity to hold this vast amount of data. The trillions of dollars’ worth cloud services market has offered businesses the chance to overcome cost bottlenecks in expansion and ‘live’ forever.
Transformation potential in India
At present, only 5 percent data in India is on cloud, revealing the huge potential for these services in the country. Like telecom and energy, developing countries like India are expected to leap over an entire development phase in technology – with businesses and enterprises moving directly to cloud without the need for on premise data storage. Perhaps the most heartening impact of this transition is that small and medium businesses will be the biggest beneficiaries of cloud.
As India’s economy continues to grow, multinational companies, with a big stake in the Indian market, will be forced to migrate their data centres to the country to scale costs and productivity. There are already examples of how cloud has transformed data-heavy IT operations in India – the IRCTC is a prime example of this.
Over the past five years, progressive CIOs are looking at cloud in a more positive manner. A 2016 survey by Microsoft showed that technology enterprises in India are already the highest users of public cloud solutions in the world. The study also revealed that the adoption rates, slated at 57% for public cloud and 33% for hybrid cloud, were among the highest globally, even ahead of the US, UK and Japan. Even conservative tech decision makers are willing to test waters by moving non-critical operations to cloud first.
Challenges in adoption of cloud in India
Internet speeds and penetration remain the main bottleneck for cloud expansion in the country, leading to pricing issues. CIOs are also hindered by the decisions taken by CFO – majority of CFOs are more focused on operational expenses as compared to capital expenses, putting CIOs in a tight spot about their ability to convince CFOs that cloud is a beneficial capital expense. However, given the rapidly changing business models in even traditional sectors like the government, banking and finance and healthcare, the change in mentality toward cloud is not far off.
India’s problems with cloud adoption are transient. While pricing issues are expected to rationalize, favorable government policies for enabling a digitization with make cloud an imperative aspect of business in the country. Cloud is also fuelling the digital workplace – more companies are moving their IT Operations to cloud and experience the benefits of fast, light and mobile data accessibility, with better resource fulfillment. This transformation in ITSM will spill over to other aspects of IT as well. The recently concluded budget, with its focus on ‘Digital India’, may be the harbinger of change that cloud proponents are looking for.
Disclaimer: The views expressed in the article above are those of the authors' and do not necessarily represent or reflect the views of this publishing house
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