Operating with caution is the way to do business in 2023. Leaders are more mindful about their expenses, given the economic uncertainties. While Indian companies have financial and tech-related sanctions under the 2023-24 Union Budget, aligning business growth with digital innovations is a step many are yet to take. Companies wonder if it is possible to increase ROI, maintain low IT infrastructure and storage costs while enabling agility and automation? Spoiler alert: yes, it is possible.
Cloud can transform the way organizations operate. In fact, according to a report from McKinsey, cloud 2.0 enables companies to shift their IT spending from capex to an opex model, reducing their overall costs by 60%. Reason why there’s demand for cloud-enabled platform-agnostic digital solutions, workload portability and API-based connectivity.
As the Indian government pushes for digital initiatives, the overall digital transformation (DX) spending in India is expected to reach $85 million by 2026. And cloud, especially cloud 2.0, is at the center of it all. Cloud 2.0 is the next generation of cloud computing, offering a more advanced, sophisticated and secure platform, accelerating innovation and supporting businesses with their DX strategy. Companies that adopt cloud can accelerate their rate of innovation, scale efficiently and reduce risks.
Time to market
The longer businesses take to update their technology, the more difficult and expensive the eventual transition becomes. In turn, outdated digital technology solutions make it hard to tweak business capabilities to the market.
With serverless cloud computing (cloud 2.0), businesses have the opportunity to accelerate their code to production rates. For instance, if an EV manufacturer wants to deploy new capabilities for their vehicular operating system, they’d have an easier time rolling the feature out with cloud deployment.
Cloud 2.0, takes this to another level. Its serverless architecture allows businesses to focus solely on developing value-added functions and features. With this capability at hand, companies can test features and respond to customer demands 20-40% faster, according to McKinsey.
Interoperability
Interoperability and multi-cloud strategy have become critical elements in enterprise cloud strategy. Especially, as businesses are working towards mitigating security risks, and ensuring workflow continuity, in their DX journey.
To enable interoperability, businesses need to facilitate seamless communication between application processes across a multi cloud infrastructure. But what does this achieve? Retention of existing cloud investments and supplementing them with emerging cloud solutions.
Businesses, including MSMEs, can stay within budget and still adopt this tech-forward approach by collaborating with digital innovation solution providers.
Edge computing
Cloud 2.0-enabled DX strategies minimize the risk of cloud networks getting overwhelmed, resulting in longer response time. For example, an EV manufacturer collecting vehicle breakdown and system failure data from their vehicles and processing it on cloud can execute such tasks with ease by employing Edge computing.
Edge computing enables cloud-native applications, enhancing connectivity, scalability, security, personalization and cost. In the case of EV manufacturers, edge computing when coupled with cloud also unlocks predictive maintenance capabilities, which can be implemented with the support of deep-tech vendors to reduce costs while maintaining quality.
Avoiding clouded judgment
The initial transition to digital transformations solutions make all the difference. It is crucial to weigh out technologies that add value to business. Without a structured approach, especially with cloud technology, companies could risk their security measures and end up compromising on agility.
Successful adoption of cloud platforms involves analyzing the potential for improved margins and developing an operating model centered around the new system. The benefits of integrating emerging cloud technology are certainly discernible, but companies could benefit from consulting next-generation technology professionals to weigh out what works best for their business goals and approach.
By Dr. Mukesh Gandhi, Founder and CEO, Creative Synergies Group
