Adoption of Cloud Computing in BFSI, Manufacturing and other industries
Cloud computing is the on-demand delivery of different services through the Internet. These resources include tools and applications like data storage, servers, databases, networking, and software. The cloud computing industry is a substantial part of the IT industry. The growth of the cloud computing market before COVID-19 was expected to be a gradual increase due to various contributing factors such as increased return on investments with lesser infrastructure as well as storage costs, a surge in the number of small & medium-sized enterprises, and a rise in awareness regarding benefits of cloud technology. However, the COVID-19 outbreak led to a sudden change in the scenario, which sent mixed waves to the business flow. The Cloud computing industry witnessed a boom due to an unanticipated upsurge in demand for cloud-based solutions after the emergence of COVID-19. As the lockdown was imposed across different nations, the cloud computing industry gained significant traction across the enterprises due to the adoption of remote working culture across the world. This trend influenced the growth of the cloud computing industry in many ways.
The outbreak of coronavirus (COVID-19) was declared as a pandemic by the WHO in March 2020. As a result, nationwide lockdowns were observed across the world where several non-essential businesses remained closed and social distancing norms were strictly followed. Thus, this pandemic led to serious disruptions across various industries, where many businesses faced new challenges and also came across some new opportunities. Similarly, the cloud computing industry is a vital part of the entire IT sector, which suffered great disruptions during the pandemic.
The impact was felt at a greater intensity in the starting phase of the lockdown where the business-related restrictions were strict, which led to change in working modes of companies; for instance, Work from Home (WFH) or Work from Anywhere. Other changes included the incorporation of safety measures such as social distancing at the workplace, shortage of human resources, and others. An urgent need for novel cloud-based software in COVID-19 also impacted the entire cloud computing industry.
Impact of COVID-19 on several industries in context with Cloud Computing Industry
Cloud computing technology is increasingly being adopted across multiple sectors in the world. After the emergence of COVID-19, the retail & e-commerce sector witnessed large disruptions. The E-commerce industry boomed during the pandemic, thus required scaling up the businesses post COVID-19 as the customers shifted to e-commerce platforms such as Amazon, to procure groceries, daily essentials, and more. Thus, shifting patterns of customer purchasing, the need to deal with increasing demand on the e-commerce platform, and changes in working landscapes are leading to an increase in demand for cloud computing for the retail & e-commerce sector. Many retail organizations have initiated their digital transformation efforts and invest heavily in IT & cloud resources in the upcoming years. For instance, cloud computing solutions for retail will enable retail organizations to provide universal access and empower the workforce to stay connected remotely.
The Healthcare industry is also one of the prominent sectors which observed changed dynamics after the emergence of this pandemic. Multiple doctors across private hospitals and healthcare institutions are offering online consulting during nationwide lockdowns. The need for mobile ambulatory services has amplified owing to the COVID-19 outbreak. These facilities and services require cloud-based communication & collaboration platforms to enhance operational efficiency and employee productivity. Healthcare providers are evolving cloud-based applications to obtain clinical insights on COVID-19 and evaluate resource supplies, such as ICU beds and ventilators. Thus, increased clinical insight requirements and data analytics and a rise in spending on cloud-based application development & ERP solutions in the COVID-19 pandemic are generating revenue opportunities for cloud service providers. According to the U.S. Department of Health & Human Services, most clinics and hospitals restricted in-person delivery of non-essential healthcare services, including genetic counseling, to slow the spread of the virus. However, telehealth is being used as a measure out of necessity. Many giants operating in the cloud computing industry changed the approach to their business operations. In response to COVID-19, companies such as Microsoft and IBM took measures to increase the supply of key cloud-based solution offerings. For instance, in September 2020, Microsoft announced that Cloud for Healthcare will be commonly available from October 30. It also announced that Epic will be the first system to integrate its EHR with Microsoft Teams for telehealth virtual visits.
However, in the midst of a staggering impact on the demand of non-essential goods & services businesses, the COVID-19 outbreak also presented a huge opportunity to the IT industry. The manufacturing industry is heavily reliant on huge manpower for operations and affects this industry prominently. After the COVID-19 outbreak, manufacturers have realized the significance of automation and are thinking of adopting various business continuity strategies. This is in turn leading to the adoption of modern technologies like cloud computing, machine learning, and IoT. Cloud-connected machinery, equipment automation factories, and plants are decreasing the need of human interaction and providing remote, secured access to the sites and operations data, hardly impeding the business stability.
Expectations from Cloud Computing Industry
The cloud computing industry witnessed a surge in demand post the COVID-19 pandemic. The outbreak of the virus led to an immediate need for social distancing and shutdown of various workplaces & the need for remote working. The cloud computing industry thus came to the rescue while adopting work from home culture across the globe. The major players operating in the industry are expected to manufacture new cloud computing solutions curated for the COVID-19 situation. The demand was quickly put to action as data availability and accessibility is a critical step for business continuity. Thus, companies across all sectors increasingly started investing in cloud technology.
Cloud computing industry will witness growth in demand for Multi and Hybrid Cloud Environments. Enterprises are becoming less concerned about sticking with one cloud vendor, and are implementing a multi-cloud or hybrid-cloud offerings, where they can get the best out of each solution. Furthermore, another trend in the cloud computing industry in the coming period will be retaining compliance in an increasingly complex environment. To join this cloud trend, organizations will need to have a vendor skeptical approach and look for Software as a Service (SaaS) solutions that lessen bottlenecks as well as blind spots. In addition, companies will seek solution-focused partners, that is, there will be a continued need for third-party vendors who really specialize in meeting specific use cases and problem-solving new cloud challenges while shifting their infrastructure using SaaS, PaaS, and IaaS in the cloud.
Post COVID-19 Scenario
As the nations are emerging out of strict lockdowns, the economy will still need a time frame to stabilize gradually. The disruptions caused by sudden changes will require time to fall back on track. The players operating in the cloud computing industry will face new challenges related to different aspects such as a rise in demand due to a sudden upsurge in remote working trends. Furthermore, offering industry-specific and customized cloud-based solutions will also be the priority for most cloud computing vendors. Furthermore, cost optimization will be one of the primary factors for most of the cloud migration in enterprises. Thus, cloud migration services will also gain significant traction during this pandemic.
Cloud computing will set a new benchmark in the IT industry in the coming years. According to Cisco, 75% of all cloud workloads and compute instances will be Software as a Service (SaaS) by 2021. Providing access to data from anywhere is the main cause for cloud computing adoption across enterprises. Moreover, edge computing would also prove to be crucial in the near future by helping the cloud to advance in its adaption in organizations. Edge computing is specialized to conduct functioning from centralized data centers to points in the network that are nearer to users and devices. However, privacy and security are the two main roadblocks for cloud adoption. Companies will make it a priority to control cloud costs.
In the near future, enterprise IT infrastructure post-COVID-19 is expected to evolve in various ways where companies will look for safe exit strategies from confinement measures. Thus, the most reliable strategies of businesses will include a cloud-first approach post-COVID-19 scenario. This is expected to lead to a scenario where the cloud computing industry will keep playing a vital part in the enterprise IT infrastructure. Companies will have to start managing the costs as cloud usage increases, streamlining the expenditure that they are not utilizing to full effect, and cutting out duplicate spending or unnecessary overheads.
Recent News in the Cloud Computing Industry during Pandemic
Key players operating in the market are witnessing the considerable impact of the COVID-19 outbreak. This industry is booming despite the recession caused by COVID-19 in other industries. In addition, giants such as Microsoft, Google, and IBM Corporation, have implemented different strategies to increase their market size and to lessen the loss incurred due to the pandemic situation. Amazon Web Services is one of the leading players in the cloud computing market. Recently, AWS launched AWS Diagnostic Development Initiative (DDI) to fast-track COVID-19 research, testing, and diagnostics. In addition, the company has made COVID-19 datasets available for free to its customers for conducting research. AWS has concentrated on scalable, reliable, and compute power, which will be provided along with services such as analytics and machine learning to its clientele.
In October 2020, GE Healthcare launched its new Edison HealthLink platform, which is the new edge computing technology designed for the needs of healthcare providers. It will enable clinicians to easily collect, analyze and act on critical data closer to its source. It also provides the Health Insurance Portability and Accountability Act of 1996 (HIPAA)-compliant data aggregation, advanced visualization, connectivity, and AI and non-AI algorithm orchestration.
In July 2020, Orange and Google Cloud declared a strategic partnership to accelerate the transformation of Orange’s IT infrastructure and the development of future cloud services, in particular edge computing. Furthermore, in March 2020, Amdocs, a leading provider of software and services to communications and media companies, and Google Cloud announced a strategic partnership to deliver leading OSS and BSS systems of Amdocs on Google Cloud and to create solutions and services to help communications companies modernize, automate and digitize with the cloud.
