The impact of cloud-based digital transformation on IT service providers

As 2022 is coming to an end, we are seeing a significant increase in cloud adoption by different sectors. companies around the world are seeing the impact of cloud-based services and investing in them. For instance, Fractal, a cloud-based provider of software & AI development, data analytics, and other services recently received funding of a whopping $360 million from TPG and Apax!

Besides, IT service providers are partnering with Amazon Web Services (AWS), Google Cloud, Microsoft Azure, and IBM Cloud. IT companies are also exponentially growing their team of experts to handle specific cloud platforms. The year 2021 saw IT giants such as Wipro announcing that it would spend $1 billion over the following three years to improve its cloud technologies, capabilities, acquisitions, and partnerships. 

This has led to the introduction of Wipro FullStride Cloud Services, which combines the entire Wipro cloud-related capability, product, and talent portfolio. Again, in August of last year, Infosys unveiled Cobalt, a special cloud product. The Cobalt product line from Infosys consists of a variety of platforms, services, and tools for clients—mostly major businesses—to use as they create new cloud-first capabilities. 

What is fuelling this cloud-based digital transformation?

Currently, there are several noticeable factors regarding big tech's embracing the utility of cloud platforms in the post-pandemic. The use of digital technologies in almost every facet of business has increased. The application of the cloud as part of digital transformation has a significant impact on computing power. It allows organizations to reinvent how they manage data and use their newly acquired technology to enhance consumer experiences. 

Besides, it also pushes companies to rethink how they handle several fields including digital marketing, e-commerce, CRM, and consumer engagement. The strategy of rapid cloud adoption is working brilliantly for IT businesses. With a constant currency growth rate of 42.1%, Infosys' digital revenue rose to make up roughly 54% of the business' overall revenue on a quarterly basis. Even Cognizant's digital revenue had increased 20% yearly and represented more than 44% of the total.

The phenomenon of cost-cutting expenses is another dominant issue that forced businesses to switch to cloud platforms. Not only IT giants but even big businesses like Coca-Cola switched to the public cloud in 2014 after a spike in traffic during the Super Bowl. It revealed that storing all the data on-site during periods of high demand was very unsustainable. The company saved 40% on operations thanks to the cloud move by lowering maintenance. Other non-IT juggernauts like PayPal, Gameloft, eBay, and others also reaped the same benefits.

What’s the impact and what lies next?

Today over 99% of business needs are met in the cloud when you need them. Organizations don't have to wait weeks or months for installation and hardware parts. End-of-life dates for essential gear and software play a role in many firms' decisions regarding cloud migration. Today's IT leaders no longer want to cope with strict license agreements and lengthy contracts.

The Government of India is considering IT companies to play a huge role in cloud-based digital transformation. In fact, the use of advanced digital technologies is assisting India's commercial and public ecosystem in securing enormous potential and transforming the country. A significant change in the industry is anticipated to be brought about by cloud-based services, data analytics, mobility, and IoT. 

Government opening up to SaaS solutions will also increase India's public sector's agility and this will be fueled by businesses in the IT sector that are quickly adopting cloud technology.

How to become cloud ready?

Businesses should have a good idea of choosing the best migration partner before considering a cloud migration. The success of executing the project depends on choosing the correct partner. One should observe entities that have - ideal teams and solutions; demonstrated experience; and necessary industry qualifications. Businesses can also switch gradually from servers to cloud providers and scale up or down as necessary by using cloud technology, which can improve business processes.

Presently,the future of Cloud based digital transformation looks promising. The IT sector has been the biggest beneficiary in terms of cloud-based digital transformations. Without a doubt, cloud computing is the wave of the future for business, and as it develops, so will the advantages it provides. 

According to a study released by MarketsandMarkets, the global market for digital transformation is anticipated to grow at a compound annual growth rate (CAGR) of 21.1% during the forecast period to reach USD 1,050 billion. Thus, companies that want to reduce expenses, improve productivity, and guarantee that workers can access systems and data from any location frequently choose to use the cloud as a solution. 

The article has been written by Bhavesh Goswami, CEO & Founder, CloudThat