From tech startups (like mine) to Fortune 200 tech companies (like mine) alike, cloud has been a global engine of growth as well as as an enabler of rapid innovation. And even through the recent recession, cloud adoption has continued to skyrocket leading to an entire economy being built around it (PaaS, SaaS, ITaaS, BaaS, XaaS…).
Did you know that cloud will generate 14 million jobs worldwide by 2013? Or that IT innovation through cloud computing leads to $1.2 billion per year in new revenue? These were some of the recent findings that came out of an International Data Corporation study commissioned by Microsoft. And, in the next decade it is predicted that cloud will be a $240 billion industry.
This is more than many countries’ GDP!
So, are you on the fast track with cloud?
It can be argued that much of the uptick in cloud adoption has been, in part, due to the recent economic downturn. With IT budgets down or flat, it has just been more practical to turn those capital expenditures into operational expenditures through cloud. The flexibility that cloud provides is also a key benefit in times of economic uncertainty. Not sure your company can predict accurately its IT needs in the next year? Cloud is a great answer since you can downsize or upsize as needed according to your business demand. In support of this, last year Bloomberg released a survey of business decision-makers around cloud technology listing the top four main benefits of cloud-based services as: efficiency, cost savings, scalability, and variety of features. you can have access to these and more through an optimized cloud strategy implementation.
What’s more, cloud is a great leveler for innovation. While the internet can be thought of as the first wave of leveling, cloud technology is definitely the second. It effectively allows startups and small businesses with limited resources to have access to a global playground of as-a-service technologies at a reasonable cost, without having to develop it in-house. In many cases, cloud enables startups to compete with well established companies by providing agility to match rapid product development without legacy IT infrastructure weighing them down. For my own tech startup, I’m actually dynamically provisioning the cloud services I need when I need them, and only paying for what I use. This helps me keep costs down and efficiency up, while giving me room to scale as I grow. Without cloud this would not be possible.
A lot of times it’s just overcoming a mindset (“we’ve always done it this way in the past and it’s always worked”), and other times it’s fear of the unknown or simply a lack of understanding that cloud has come a long away to address concerns around compliance, regulatory, security, and control issues. Sometimes it’s simply a matter of education to overcome objections of the past on the journey to the cloud.You may also be wondering which industries are the most mature in terms of cloud computing adoption. The usual suspects of banking, insurance, education, media, and government (mostly private cloud) top the list. Lagging behind are manufacturing, retail, healthcare, and energy/utilities. Doing this gap analysis reveals that there is an opportunity space emerging in these underdeveloped industries for which cloud can play a future role, given the right positioning.
These days, cloud not only allows smaller companies to compete in a global marketplace (and larger companies to retain their competitive advantage if they are effectively employing cloud), but it also can be a nimble canoe of differentiation in a sea of Big Data. Big Data analytics allow us to glean insights and generate tailored reports about our customers like never before, getting real-time metrics about demand, buying habits, engagement effectiveness …you name it. Companies that can respond to rapidly changing market conditions with agility, armed with the insights combed through effective reporting mechanisms, will succeed in tomorrow’s marketplace. And what’s the underlying gateway to this success?