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December 14, 2022

How is Cloud-Based Digital Transformation Impacting IT Service Providers?

The impact of cloud-based digital transformation on IT service providers is significant and growing. The increased adoption of cloud-based services by companies globally has led to IT service providers partnering with cloud platform providers such as Amazon Web Services, Google Cloud, Microsoft Azure, and IBM Cloud. These IT service providers are also expanding their teams of cloud experts to handle specific platforms.  

In 2021, Wipro announced it would spend $1 billion to improve its cloud technologies, capabilities, and partnerships. This led to the introduction of Wipro FullStride Cloud Services, which combines the entire Wipro cloud-related portfolio. Similarly, Infosys unveiled Cobalt, a cloud product line consisting of platforms, services, and tools for clients to create new cloud-first capabilities. 

Several factors are driving the cloud-based digital transformation. The increased use of digital technologies in businesses has led to the application of the cloud in digital transformation, which has a significant impact on computing power. This allows organizations to manage data more effectively and use technology to enhance consumer experiences. Cost-cutting expenses are another dominant factor that has forced businesses to switch to cloud platforms. For example, Coca-Cola switched to the public cloud in 2014, saving 40% on operations by lowering maintenance costs. 

Today, over 99% of business needs are met in the cloud. Cloud migration has become a popular solution for companies that want to reduce expenses, improve productivity, and allow workers to access systems and data from any location. The government of India is considering IT companies to play a crucial role in cloud-based digital transformation, which is expected to bring significant changes to the commercial and public ecosystem.  

The future of cloud-based digital transformation looks promising, with the IT sector being the biggest beneficiary. The global market for digital transformation is projected to grow at a CAGR of 21.1% during the forecast period to reach $1,050 billion. 

Businesses looking to become cloud ready should choose a migration partner carefully and gradually switch from servers to cloud providers, scaling up or down as necessary. To ensure success, businesses should observe entities with ideal teams, demonstrated experience, and necessary industry qualifications. In conclusion, cloud computing is the wave of the future for business, and as it develops, so will the advantages it provides. 

Bhavesh Goswami, Founder & CEO, CloudThat has shared his thoughts on how the cloud is influencing the IT industry in this article at Dataquest.