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80% of Indian organizations harness data analytics via cloud: EY – FICCI report

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cloud adoption

Widespread cloud adoption in India is prompting organizations to make substantial investments in their cloud infrastructure. The report by EY and FICCI, titled ‘India’s Cloud and Data Revolution: From Adoption to Enabling Innovation’, reveals that India’s tech landscape is undergoing a seismic transformation fueled by large-scale adoption of cloud technology. This shift is not just about migrating to the cloud; it’s about harnessing its capabilities to drive innovation, enhance customer experiences, and unlock new revenue streams.

Cloud adoption for business transformation

With a staggering 80% of Indian organizations embracing cloud technology, the imperative is clear – the cloud is not merely a tool but an enabler of transformative change. Early adopters of cloud computing, who primarily focused on cost optimization and operational efficiency, are now leveraging cloud services to build next-generation digital platforms. The broader objectives encompass data modernization, application modernization, agility, business growth, and innovation.

India as a global cloud hub

India is transforming into a prominent center for cloud-first businesses. Significant cloud regions have emerged in Mumbai, Chennai, Hyderabad, and Pune, with Indian Global Capability Centers (GCCs) assuming crucial roles as cloud engineering hubs for multinational corporations. India’s ascent as a vital market for Cloud Service Providers (CSPs) has resulted in the rapid growth of cloud-native services accessible to Indian enterprises.

Cloud adoption to drive Generative AI

Realizing the benefits of generative AI is closely linked with cloud technology. The widespread adoption of generative AI will result in an upsurge in data utilization and a substantial increase in the consumption of cloud resources. Utilizing cloud infrastructure for Generative AI comes with numerous benefits, including the ability to scale operations, access pre-trained models, and seamlessly integrate these capabilities into existing applications.

However, it is important to establish a robust framework for the responsible use of Generative AI, considering the potential concerns such as data leakage and the generation of biased outputs.

Transforming business through the cloud

The survey indicates that organizations are increasingly utilizing the cloud for data infrastructure modernization, deriving insights from their data, and achieving business growth. Collaboration, workplace productivity, security, and data privacy are also top priorities.

  • Data Infrastructure Modernization: 49% of organizations are using the cloud to modernize their data infrastructure, with larger organizations leading at 55%.
  • Application Modernization: 78% of organizations are implementing cloud strategies for app modernization.
  • Collaboration and Workforce Productivity: 40% of organizations are leveraging the cloud for collaboration and workforce productivity.
  • Data and Analytics: Cloud adoption enables data and analytics capabilities for 80% of organizations.

Challenges to overcome

While cloud adoption promises immense value, organizations face significant challenges:

  • Adequate Cost Management: Many companies are overspending on cloud budgets, with up to 20% more spent annually. Larger organizations achieve cost optimization of about 20% from the cloud, while medium and small-scale organizations often fall short of their cost-saving goals. Awareness of cloud economics, including associated costs, is crucial.
  • Talent Gaps: Finding cloud-native skills remains a significant challenge, with 75% of organizations facing this issue. Expanding apprenticeship and internship programs and providing on-the-job training can address the talent shortage.
  • Increased Cyber Risk: As cloud technology matures, organizations face growing threats to security and data privacy. Concerns include inadequate threat notifications and security system misconfigurations. 53% of organizations consider data and cybersecurity a challenge.

India’s cloud revolution is in full swing, driving innovation and business transformation. While challenges exist, the potential for growth and innovation in the cloud-powered era is immense, with organizations and the government working together to overcome obstacles and seize the opportunities presented by cloud technology.

Source: EY

Featured image credits: Freepik

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