Organisations have increasingly been adapting to the cloud ever since the onset of the COVID19 pandemic and is expected to grow in the near future.
In a survey conducted by Infosys titled ‘Cloud Radar 2021’ which aims at understanding how companies use cloud for better performance, Infosys surveyed more than 2,500 business and IT executives across five countries and twelve industries between November 2020 and January 2021.
According to the survey, cloud adaptation continued to accelerate doubling every two years and businesses are capable of adding $414 billion of annual profit by using cloud in order to increase speed and competitive abilities across industries such as financial services, insurance, manufacturing, healthcare, retail, telecom, and others.
More efforts needed
The survey said that for enterprises to achieve cloud-fuelled profit boosts, at least 60 per cent of their IT systems need to be on the cloud, and for businesses to extract maximum benefits from AI, at least 80 per cent of their business functions need to be on the cloud. However, the study found that just one in six enterprises have achieved exceptional cloud performance.
Only 17 per cent of respondents had shifted over 60 per cent of their business to the cloud in 2020, but that number is expected to reach 41 per cent of businesses by as early as next year.
The survey pointed out that the highest performing businesses had annual growth correlated with using the cloud to develop and launch new solutions, add new functions to software in use, expand the processing capacity, unlock value from data with the help of AI and discover new sources of revenue.
“There’s a strong correlation to the bottom lines of corporations and cloud transformation. It’s good to see that we are able to add direct value to the bottom line of enterprises we work with and this study has proven that we have a phenomenal opportunity,” said Narsimha Rao, EVP and head of cloud, infrastructure and security services, Infosys.
He further added that this represented a massive opportunity for Indian IT services firms such as Infosys to help enterprises transition to the cloud, while several enterprises boosted their cloud adaptation as a defensive measure last year, these businesses were now looking to adopt cloud technologies to go on the offense and grow their businesses and profits.
