A new research report released Thursday by IT services firm Tata Consultancy Services (TCS) found that 70% of large enterprises are in the cloud despite macro headwinds and the recent slowdown in growth among global cloud providers. remains a long-term investment priority for
The report, entitled “The Connected Future: How the Cloud Will Drive Business Innovation,” is the result of a global survey of 972 senior executives, including those from India. Innovation was found to be the primary driver of cloud investments for 6 out of 10 Chief Executive Officers (CXOs). It is important as a catalyst for innovation that will shape the future of your organization.
This seems particularly true for artificial intelligence (AI), with 75% of respondents having invested in AI and machine learning capabilities in the past two years and 78% planning to invest in the next 12-24 months. Both technologies rely heavily on access and scalability of large amounts of data through the cloud, the report notes.
Notably, more than a third (37%) of respondents are meeting their goals for cloud-enabled innovation in the form of new business models, highlighting the growing power of the cloud to drive new revenue streams. doing.
“The demand for greater efficiency, resilience and flexibility drove early cloud adoption, but they remain key drivers. We have a better understanding of how to drive growth to a higher level, but for most companies, the effort is just beginning,” said Krishnan Ramanujam, President, Enterprise Growth Group, TCS.
But despite significant progress in recent years, the study reveals that enterprises still have a long way to go to unlock the full power and potential of the cloud. For example, the survey notes that 66% of his respondents are still in the early stages of transitioning to a mature digital ecosystem.
Additionally, a critical skills gap continues to affect businesses in the cloud space, with more than half (52%) of respondents saying they lack full cloud proficiency within their organizations, the survey found. said.
“The cloud is often a source of near-term ROI anxiety, but growth and transformation are long-term battles. It is completely achievable with a plan,” Ramanujam said.
“This is critical because the cloud is now the digital fabric that unites every enterprise, driving powerful technologies from generative AI to edge and quantum computing, and fueling the next wave of innovation now and in the future. Because it’s bringing waves,” he added.
In addition to TCS, another report released on June 1 by market research firm International Data Corporation (IDC) also found that public cloud services revenue in India will reach $17.8 billion by 2027, with revenues expected to reach $17.8 billion by 2022-27. The CAGR for the year is expected to reach 23.4%. , against the backdrop of growing digital transformation efforts by businesses.
Harish Krishnakumar, Senior Market Analyst at IDC India, said in a report that the adoption of technologies such as AI/ML will drive more companies to focus on digital-first business strategies and that public cloud adoption will surge in the coming years. He said it was expected to continue. , analytics, and other cloud-native application development is also gaining momentum.
India is one of the largest and fastest growing cloud markets and global enterprises are increasingly looking to its potential. Amazon Web Services (AWS) announced plans in April to invest his $12.7 billion in cloud infrastructure in India by 2030 to meet growing customer demand for cloud services in India. Did. AWS said the investment will be used to build cloud infrastructure in India and will support more than 100,000 full-time jobs annually.
Google, too, is expanding its cloud infrastructure by building a cluster of local data centers in India, and over the next few years will be making strategic investments out of a $10 billion fund allocated to boost India’s digitalization. going. Last year, Microsoft announced it invested 150 crore rupees (about $2 billion) in establishing Hyderabad, India’s largest data center region, making it the country’s fourth data center region after Mumbai, Pune and Chennai. Microsoft has a network of 160 data centers organized into 60 data center regions worldwide.
