“No-one knows where the cloud journey will end,” observes EY’s Greg Cudahy, “but it’s now widely accepted that the cloud paradigm will give TMT companies the means to accomplish things that were previously considered impossible. To remain successful, these companies must rapidly respond to constantly evolving customer expectations. And the only way for them to do this is through the cloud.”
TMT companies that are leveraging the cloud to achieve digital transformation are reporting rapid growth and greatly improved efficiencies. When, for example, the quality of its online video games fell behind those of its rivals, a well-known game-streaming service rolled out an innovative cloud-based service that guaranteed its gamers a sub-35-millisecond response time.
Likewise, when a major cable and internet-service provider wanted to upgrade its flagship video product, it turned to the cloud. The hybrid service it utilized provided both the scale and security the company required to deploy new features several times a week instead of once a year.
EY advisors believe that the cloud paradigm will help transform TMT companies by greatly accelerating their ability to roll out new products, gauge their customers’ responses and make rapid-fire adjustments. And by applying cloud-based analytics to all the user data that they generate, these companies will gain far greater insights into their customers’ behavior than was ever before possible.
But to accomplish these ends, porting an application to the cloud will no longer be the relatively simple “lift and shift” procedure it has largely been until now. Designing, deploying and securing applications that can be offered as services requires a new agile mindset, along with a cloud-based development model that makes it feasible to modify, track and protect the hundreds of moving parts on which these applications depend.
However, while the complexities will increase, so will the payoffs, as service-centric applications become the basis for new subscription and pay-per-use business models. Such models open the door to new sources of recurring revenue and — by migrating all of its operations to the cloud — enable the entire business to run that much faster.
This reality is beginning to hit home. “Five years ago,” says EY’s Cudahy, “only the most progressive boards would engage in discussions about cloud computing. Today, the cloud is a regular topic on board-meeting agendas at companies of all shapes and sizes. Rather than a cost to the business,” he adds, “It’s now seen as a revenue generator and enabler of innovation.”