Maximizing Corporate Cloud Investments: Unlocking Untapped Potential 2023
According to a report by Infosys Knowledge Institute (IKI), the company’s research arm, just 47% of current cloud promises have been used, and over $300 billion in corporate cloud pledges are still untapped.
According to the survey, although businesses will continue to spend money on the cloud, less than half of that money is actually being put to use. According to the research, “While this does not suggest a short-term issue, companies that do not adhere to their cloud contracts stand to face higher costs as cloud providers renegotiate contracts.”
Over 2,500 respondents from businesses in the US, UK, France, Germany, Australia, New Zealand, and the Nordic nations participated in the poll for the research, Cloud Radar 2023. According to the survey, corporations are now considering cloud computing for organisational development and change rather than just cost reduction.
Assoc. Vice President of Infosys Cloud Services Shyam Vijayan stated: “When money pledged has not been spent, it created problem for both cloud clients and their providers.” Clients must pay the remaining balance or renegotiate the contract, sometimes on less advantageous terms, if they don’t spend their pledged spending by the end of the contract period.
Cloud computing has transformed the way businesses operate by providing scalable, flexible, and cost-effective solutions to store, manage, and process data. Companies across the globe have recognized the potential of cloud technology and have made substantial commitments in the form of investments, contracts, and partnerships to harness its power. However, despite these commitments exceeding $300 billion, there remains a vast untapped potential in the corporate cloud space.
Corporate cloud commitments refer to the financial investments, service contracts, and strategic agreements made by businesses to adopt cloud-based services and technologies. These commitments come in various forms, including:
- Cloud Infrastructure Investments: Many enterprises have made significant investments in building and expanding their cloud infrastructure. This includes constructing data centers, purchasing servers, and acquiring networking equipment to create the foundation for their cloud operations.
- Cloud Service Contracts: Companies often sign long-term service contracts with cloud providers like Amazon Web Services (AWS), Microsoft Azure, and Google Cloud Platform (GCP). These contracts outline the terms of service and the financial commitments associated with using cloud resources.
- Cloud Migration Initiatives:Organizations allocate substantial budgets to migrate their existing on-premises systems and applications to the cloud. This involves rearchitecting, rehosting, or rebuilding applications to leverage cloud-native capabilities.
- Cloud Research and Development:Tech giants and innovative companies earmark funds for research and development (R&D) focused on cloud technologies. This includes developing cloud-native applications, creating new services, and enhancing existing cloud offerings.
Migrating existing systems and applications to the cloud is a complex process that often requires significant time, resources, and expertise. Many organizations struggle to execute seamless migrations, causing delays in realizing the full benefits of cloud technology.
Cloud technology evolves rapidly, and companies need skilled professionals to manage their cloud infrastructure effectively. Skill shortages and the need for training can hinder the efficient utilization of cloud resources.
Legacy systems and applications may not be easily compatible with cloud environments. Companies with extensive legacy systems may face challenges in modernizing their technology stack.
Certain industries, such as finance and healthcare, are subject to strict regulatory requirements. Navigating these compliance issues in the cloud can be complex and require additional investments in security and data protection.
Some organizations may have overcommitted to cloud resources, resulting in underutilized capacity and increased costs. Optimizing cloud spending and resource allocation is crucial to maximizing the return on investment.
Regularly assess and optimize cloud resources to eliminate waste, improve performance, and reduce costs. Implement automation and cloud cost management tools to enhance efficiency. Invest in training and upskilling employees to ensure they have the necessary expertise to manage cloud resources effectively.
Prioritize modernizing legacy systems and applications to make them cloud-compatible and take advantage of cloud-native features.
Work closely with cloud providers to implement robust security and compliance solutions that meet industry-specific regulations.
Develop a clear cloud strategy that aligns with business objectives, and regularly review and update it as technology and business needs evolve.
The corporate world has committed over $300 billion to cloud technology, representing a significant shift in how businesses operate and compete in the digital age.
However, realizing the full potential of these commitments requires careful planning, strategic execution, and ongoing optimization.
As companies address the challenges of migration, skill development, and compliance, they will unlock the untapped potential of their cloud investments, driving innovation and growth in the years to come.
