With its promise of lower capex spending and a lower IT footprint to manage, cloud computing is increasingly becoming a go-to option for enterprises when evaluating their IT and apps spending during refresh cycles. Virtualization and automation of service provisioning is enabling IT to be leveraged more efficiently. Adoption of private cloud based solutions is now widespread in segments like financial services, telecom and healthcare. Among enterprises, we are also seeing a trend toward adopting public cloud Infrastructure-as-a-Service (IaaS) and Platform-as-a-Service (PaaS) for efficient management of infrastructure and apps. Use of cloud based Software-as-a-Service (SaaS) for business processes such as CRM is also on the rise. We believe this is the foundational and first wave of enterprise cloud adoption.
In parallel, we are seeing a consumer empowerment revolution spearheaded by a digitally empowered millennial population, who are assuming positions as employees, partners and consumers. Empowered by a proliferation of low cost yet powerful mobile devices, the collaborative environment of social media networks and democratization of information flow, millennial users, now demand immediate access to information and personalized services from their service providers.
It is imperative for businesses to respond effectively to emerging demands from this interconnected digital economy to remain successful. To support this business need, organizations need a cost effective, highly sophisticated platform that enables them to quickly and flexibly offer customizable and personalized services to their consumers. This, we believe, is where the true potential of cloud is yet to be realized.
The digital revolution that we are seeing today can only be enabled by the promise of cloud’s ubiquity and elasticity. The cloud’s true impact as an enabler of business innovation can be realized by offering dynamically assembled platform services that can be put together or torn apart at an affordable cost, with the promise of a reach that is as wide as the Internet. The cloud can also drastically reduce the cost of failure, allowing organizations to increase their market responsiveness through faster innovation cycles. We will find technologies such as web, social, data and mobile all converge in the cloud, proving the dynamism of the platform.
Today, we increasingly find departments such as Marketing, Human Resources, Research and Development, apart from IT, adopting cloud-based innovations to achieve outcomes such as social media outreach which would help to launch new products / services, improve employee engagement and collaboration, try out low cost innovations and offering shared services such as Virtual Desktops and BYOD (Bring your own Devices). For example, a leading US hi-tech and communications company consolidated their marketing and campaign management platforms that support their 100+ products into a single centralized portal on the cloud, thereby providing business units central access to global client database with capabilities such as customer micro segmentation, spend analytics and personalized offerings. In another case, a leading online payments company is implementing a cloud based CRM system that can capture the customer experience feedback on their products across multiple channels. This will allow the payments company to offer personalized service to its customers with an intent to improve customer experience and increase customer life-time value.
We expect the number and reach of such cloud-driven innovations to see exponential growth in the short to medium term, to the point where cloud will become the default way of doing business.