Cloud Comes of Age for Business

The phenomenal growth in cloud usage has led to many companies moving from the ‘when and why’ stage of cloud adoption to the ‘how’.
The adoption of cloud seems to have gained critical mass, with the concept gaining widespread traction in businesses and homes around the world. While this growth is driven by the benefits of a cloud-based approach to business, concerns still remain with regard to the practical challenges of adopting these highly disruptive technologies. Despite the proven cost saving and business advantages offered by cloud computing, some CXOs are still wary about making the shift and addressing the potential challenges that come with such a migration.

Senior Vice President and Head – Infrastructure Services, ITC Infotech, Prasad Natu says, “There is no doubt that there are several complexities related to cloud migration, but delaying a move or poorly executing the migration process could impact the competitiveness of organisations. CIOs that follow a disciplined approach to cloud migration end up harnessing unprecedented levels of business efficiency and growth. Organisations that do so in a precipitous manner may run into risks from which it would become difficult to recover. A strategy that smoothly manages cloud transition costs and risks can lead to exponential business benefits.”

In a recent web-based survey of 674 senior executives at organisations using cloud across 16 countries, KPMG assessed the status and impact of cloud adoption around the world. The survey indicated that the majority of organisations have already begun to adopt some form of cloud technology, with all signs indicating that this is just the beginning. According to the study, respondents expect to realign more business processes to the cloud, expand the budget for cloud implementation and spend less time defending the move to cloud to their leadership. In addition, cost savings are already being achieved through cloud adoption. Seven out ten respondents agreed that the cloud environment had delivered significant efficiencies and cost savings, which KPMG says is creating a greater acceptance for cloud within the boardroom and across the enterprise.

However, data security, regulation and compliance have to be ensured from the start to allay any concerns when moving to the cloud. Despite these challenges, business leaders have clearly started to acknowledge that cloud adoption should actually improve security rather than lessen it, and that the cloud computing market is expected to grow from the $40.7 billion level it was at in 2011 to $241 billion in 2020.

Prasad Natu adds: “In this environment CIOs need to find ways to efficiently shift to cloud. They need to evaluate what should be moved to cloud, how to structure the relationship with their cloud service provider, and how to manage risks while operating in a cloud computing environment. CIOs should also take into consideration various security and application risks as well as process complexities, along with the degree of customisation required.”

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David Dungay

Editor - Comms Business Magazine