Cloud became a critical enabler when small and large businesses battled to survive the challenges brought by the Covid-19 pandemic. From helping companies pivot to a remote working/work-from-home model for business continuity to embracing digital transformation to drive efficiency, the cloud helped them reimagine their business in unprecedented times. Almost two years into the pandemic, the business value delivered by cloud technologies has paved the way for a data-first and technology-first culture, driven by data and application-based technology ecosystems -- and this is here to stay.

Catalyzed by the pandemic, in 2020 analysts estimated that end-user ecosystems will spend $257.5 billion on public cloud services. In 2021, this number is said to have increased to $396 billion and further expected to grow by 21.7 per cent to reach $ 482 billion by 2022. Also, by next year, public cloud spending will exceed 45 per cent of all enterprise IT spending, up from less than 17 per cent in 2021.

In the virtutal machine (VM) cloud era, companies realized that they could forgo buying or operating hardware and start in the cloud. This was a key catalyst for many of thenative cloud companies we all rely on today. By the end of this first VM cloud era, it became very rare for startups to operate their own data centres.

Infrastructure cloud

Then came the infrastructure cloud that has been defined by organizations migrating their IT infrastructure to the cloud. This has been important as it has enabled cost savings as things can scale up and down, faster development without having to do long-term infrastructure planning, improved security, and the ability to redirect more people and other resources to building new capabilities versus simply managing infrastructure. And we saw how, in this last decade of the infrastructure cloud, companies splintered into two groups: those that migrated much of their infrastructure to the cloud and continued to exist, while companies that ignored this migration were generally left behind.

And now the really interesting conversations are how we get to a third phase, the transformation cloud, where we’re not just making an infrastructure decision, but truly embedding the need and capability to transform throughout the company. Digitization is now fundamental and this phase moves from what might have been a top-down corporate strategy and an initiative for infrastructure, to fully infusing transformation, letting every person and team in your organization transform.

For example, financial institutions are leveraging the full potential of cloud-based data analytics without moving all their workloads - thanks to hybrid and multi-cloud models. They are using smart data analytics to increase operational efficiency, support and improve business performance, as well as modernize and optimize business processes.

Cloud computing

In the e-commerce space as well, cloud computing enables the organizations to expand their business. Cloud computing is already the favourite option for e-commerce enterprises globally, because of its elevated capabilities. Businesses are also quickly utilizing cloud-based applications owing to their ability to develop a closer connection with customers, boost sales, and enhance revenue.

In the last two years, there has been an accelerated awareness about climate change and organisations across the globe are striving to reduce their carbon footprint. Interestingly, cloud companies have been helping organisations make the green shift by replacing high-footprint physical resources with automated, real-time cloud data. Moreover, many big tech companies are also helping users measure, track and report on the carbon emissions associated with cloud by installing data centres that are twice as energy efficient. Sustainability was a natural outcome of the shift from on-premise to cloud computing.

The transition to cloud-based systems during Covid-19 was accelerated, as more people accessed critical services online. However, with the whole world moving to a hybrid and remote working culture, cloud-based operations have become a prerequisite for businesses. While the pandemic sped up cloud adoption, businesses of all sizes took up new cloud-based digital applications and collaboration tools like Google Workspace for seamless communication in the beginning.

When looking at businesses modernising their environments during the pandemic, it is learnt that it was not the organisations that had the most robust resources in terms of manpower, revenue or technology that seamlessly transformed and achieved success. Rather, those organizations that were most adaptable to change and could embrace rapid digital transformation came up on top. And these businesses also have the potential to lead the way in innovation, as the cloud can help leverage the power of disruptive future technologies.

The author is Managing Director - Google Cloud, India Region

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