4 minute read 21 Mar 2022
Emerging trends in cloud adoption

Emerging trends in cloud adoption

EY India
By EY India

Multidisciplinary professional services organization

4 minute read 21 Mar 2022
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  • Cloud as a catalyst for business transformation 2022 trends report

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EY-NASSCOM Cloud survey depicts how cloud has emerged as the primary driver of business growth amidst uncertainty, with 75% of organizations leveraging multi-cloud models for remote work monitoring, operations management, and governance.

In brief  (Based on the responses from 540 C-suite executives)

  • 78% ITes firms, 53% healthcare and 53% BFSI companies reported a steep spike in cloud adoption
  • 75% attribute rise in cloud adoption to remote working
  • Public cloud adoption is on the rise, driven by small enterprises

While cloud adoption has been on the rise, the last couple of years have demonstrated the need and importance of cloud as a critical ingredient of future business growth.

Although the COVID-19 pandemic altered many paradigms of conducting business, a majority of the respondents ranked business growth as the critical factor in cloud adoption, enabling organizations across the world to operate smoothly during the pandemic.

Cloud played an integral role in equipping enterprises to not only sustain despite lockdown scenarios and IT infrastructure inconsistencies but also enhance speed to market, agility, and responsiveness. As per the survey, while 67% large enterprises accelerated cloud adoption, 39% of medium-sized companies and 38% of small companies also progressed in their cloud journey. However, small and medium-sized organizations have a long way to go in detecting and combatting security risks in cloud, with 65% of respondents stating that they lack the mechanisms to manage emerging cloud security risks.

Top 3 business drivers for moving to cloud

  • Business growth and transformation
  • Security and data privacy
  • Workplace productivity

Public, Private or Hybrid?

The COVID-19 pandemic has introduced organizations to the benefits of deploying a scalable, distributed and flexible infrastructure. The momentum has further directed enterprises towards three major types of cloud models, Public, Private and Hybrid. The survey suggests that Indian organizations are comfortable in considering a hybrid or a multi-cloud approach to leverage an optimum combination of different deployment models that best fit business requirements.

The preferred cloud adoption model

The survey also throws light on the core benefits of cloud adoption like the amount of flexibility it offers when it comes to different aspects of cost, allowing organizations to explore multiple strategic options. The different cloud adoption models and cloud service options are not only offering organizations with alternatives to implement cloud in different ways but also enabling them to plan their technology budgets.

How EY can help

79% of the survey respondents say that Software-as-a-service (SAAS) continues to be the most preferred cloud deployment option among Indian organizations 

While SaaS continues to be the largest cloud segment for cloud consumption due to its ability to provide on-demand, out-of-the-box solutions for rapid transformation, PaaS is expected to grow at a faster rate. The huge migration of employees during the pandemic to remote work leverages PaaS-based cloud native solutions. The maturity of the automation and productivity tools will further accelerate the adoption of PaaS services like server-less cloud computing and automated cloud orchestration in the next few years.
Nitin Sawant
EY India Cloud Leader

The risk landscape

Given the ever increasing risk of cyber attacks, several executives told us that they are bolstering their security defences with a three-pronged strategy involving people, process, and technology. They want to augment their traditional network security measures with a proactive approach and continuously monitor everything happening on their systems.

In addition to security-related risks, shortage of talent presents a major challenge before the industry. Our survey reveals that while organizations are making every effort to hire digital skills from the market, there is also a major push to leverage automation to bridge the skills gap.

Enterprises are adapting to a new consumer-centric marketplace in which customers expect their products and services to be delivered more conveniently and quickly than ever before. More and more organizations utilize the cloud to gain access to on-demand resources — servers, applications and networks. The right cloud strategy offers significant benefits in areas such as customer experience, employee engagement, development of new products/services, cost optimization, and the development of entirely new business models. By addressing key challenges that may impede cloud adoption, we can strengthen the competitive posture of enterprises across India.

How EY can help

Technology transformation

Organizations must consider foundational transformation rather than quick fixes and ad hoc investments to give them the agility to adapt.

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Digital Transformation services

We help companies thrive in the transformative age by refreshing themselves constantly, experimenting with new ideas and scaling successes.

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Show resources

  • Cloud as a catalyst for business transformation - 2022 trends

    pdf (2 MB)

Summary

From this year’s survey results, we may conclude that Indian organizations are truly on a path to transitioning to the cloud. The results reveal that cloud will likely start replacing on-premise in a variety of ways.

About this article

EY India
By EY India

Multidisciplinary professional services organization

Related topics Consulting Technology Digital Automation Technology leader's agenda
Upvote