Cloud computing is a crucial enabler of digital transformation, allowing enterprises to make use of technologies such as Big Data analytics, Machine Learning, augmented reality, chatbots, and the Internet of Things (IoT). A cloud-delivered and cloud-enabled business model allows companies to simplify their IT infrastructure, focus on digital transformation, and find new ways to reach clients. According to a recent analysis by BlueWave Consulting, a strategic consulting and market research business, the worldwide cloud computing market was valued at USD 390 billion in 2021 and is expected to expand at a CAGR of roughly 11% through 2028, achieving sales of around USD 852 billion.
Cloud is a vital tool enterprise can use to expedite transformation efforts as they return to pre-covid levels. Cloud computing provides intelligent digital solutions that are readily available, adaptive, and agile.
Here’s how cloud computing may aid in the digital transformation of businesses:
Allows for faster prototyping
Organizations must engage in continuous innovation, testing, and deployment to drive digital transformation. Throughout the transformation phase, the cloud provides enterprises with a platform where they can design, test, and deploy apps on many platforms without setting up complex infrastructure.
An established insurance company realized it had too many data management issues. Finance couldn’t get the required information from its aging mainframes, which caused delays when critical decisions needed to be made. Access to data was cumbersome, retrieval was challenging, and analysis was almost impossible. The client realized it required a new platform for better reporting. The process started with a simple idea: unlock the company’s data and disclose the commercial value.
Cloud computing allows businesses to access, retrieve, and analyze data at any time and location, allowing for more efficient cooperation and productivity. Furthermore, the cloud makes video communication much easier because it enables organizations to plan and arrange meetings directly on the system.
Microsoft Teams (Microsoft Corporation), cloud-based collaboration software that includes capabilities including chatting, video calling, and file sharing, was introduced and made available across a German hospital. Teams were not used in the clinic before the pandemic, and there was no other standardized system for doctor cooperation in the hospital. With its introduction, communication became more professional. Telephone communication has decreased dramatically, and many concerns were resolved immediately through chat. Furthermore, response times were also reduced.
Collaboration between physicians became much more accessible. Data could be shared with anyone, and information could be captured immediately. Physicians could get data from anywhere, and even those who had not attended a meeting could use digital protocols to get information. Colleagues could be reached much more rapidly, and communication between departments was streamlined.
If your data is held in-house, you may be continually in danger of losing crucial information due to unexpected system shutdowns, data breaches, and other factors. Furthermore, while using Big Data analytics, the risk of system failure grows significantly. Moving to cloud hosting can help businesses mitigate this risk by allowing them to create multiple backups of their data in a secure environment.
Shenzhen Airport in China implemented airport-wide situational awareness, stand arrival prediction, emergency warnings, joint operations, and intelligent decision-making, with shortened aircraft turnaround times, with the help of an innovative, comprehensive operations control system based on the cloud. With the implementation of cloud computing, for the first time in the airport’s history, the on-time release rate exceeded 87 percent in 2019. This statistic remained consistent at over 80 percent for 15 months. The airport has experienced fewer delays in the last two years, resulting in increased punctuality.
Reduced Operational Costs
The cloud offers a scalable service paradigm where businesses are only charged for their resources. It enables optimal resource scaling based on demand and reduces purchasing and managing IT infrastructure costs. Furthermore, cloud servers eliminate frequent server environment refreshes.
A FinTech start-up has reaped various benefits from its move to the AWS cloud. There was a 500 percent increase in client traffic, but there were significant cost savings despite greater traffic volumes. The move is predicted to save up to 30% with a few more optimizations. All previous manual interventions, such as regular backups, fault tolerance, and mirroring, have been automated with this transformation.
Flexibility and productivity
Cloud computing increases agility and flexibility by supplying the necessary platforms, infrastructure, and computing resources without investing in separate IT infrastructure. It enables businesses to respond fast to client needs, removing the issue of IT system overload or over-provisioning.
A major energy firm needed to reduce cycle time caused by obsolete IT systems and applications and standardize reporting systems and processes across all sites and plants. Cloud migration helped the company increase shop floor productivity and employee satisfaction by 35%. The company also saw a 20% improvement in shift productivity through standardized processes.
Cloud computing provides on-demand network access to a shared pool of configurable computing resources (e.g., networks, servers, storage, applications, and services) that may be swiftly supplied and released with minimal administrative effort or service provider contact. For company agility, growth, and success and to create great consumer experiences — it’s critical to embrace cloud computing and disruptive technologies.
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