Get the 3C Benefits of Cloud, Cost and Containers

Cloud transformation and the evolution of ICT will enable growth of innovative business models, new products and services, and eventually, foster economic growth.

By Shrikant Navelkar

A confluence of existing factors driving cloud adoption has been further accelerated by the COVID-19 pandemic. According to Synergy Research, the spending on cloud rose 37% to US$29 billion during the pandemic. This trend is likely to continue, as the transition to virtual work underscores the urgency for remote, scalable, secure, and cost-effective off-premises technology services. Cloud OEMs and providers have understood the threats, opportunities and events that occur as a result of the pandemic. And they have demonstrated how prepared they are to handle unexpected demand spikes with recent cloud services and trends.

Scale and Agility at Will

As technology continues to advance relentlessly, industries must leverage it to transform their existing infrastructure to keep pace with time. Cloud-based architectures are faster to upgrade than traditional systems, making it easier for manufacturers to keep up with new developments.

No wonder then, most manufacturers are turning to cloud solutions for their supply chain as it is easier to monitor and scale based on demands and future predictions.

The Evolving Cloud

Cloud providers build plethora of options when it comes to providing the right cloud solution. Irrespective of the variants, cloud services have been growing at all levels. Let us take a look at the recent trends.

• Infrastructure as a Service (IaaS): It gives access to virtual computing resources such as servers and storage. According to IDC, IaaS is the fastest-growing cloud service with a five-year CAGR of 33.7%.
• Platform as a Service (PaaS): It provides resources for software development and the pandemic has seen the adoption of PaaS jump 56%, making it the fastest-growing segment in cloud platforms.
• Software as a Service (SaaS): It includes software hosted, managed and maintained by the third-party cloud providers. According to a Cisco report, 75% of all cloud workloads and compute instances will be a part of SaaS.
• Hybrid cloud infrastructures: It includes the environment hosted on public as well as private cloud and administered by the organization.
• Multi-cloud Environment: Multiple public clouds from multiple providers are present and it can be accessed through a single software-defined network. According to a Flexera report, 82% of enterprises have implemented a hybrid cloud strategy, while 92% are using a multi-cloud approach.

The Best Cost Model

Organizations are increasingly seeking a variable-cost model for their core computing, storage and networking requirements. Variable cloud offerings with ‘pay-as-you-go’ models have been the primary preference. The pandemic has only accelerated this preference for Opex over Capex solutions.

According to a research by consulting firm PwC, almost 75% of finance leaders said they were planning for a more agile and cost-effective business environment; with 83% of CFOs planning to reduce their capital expenses.

Its Containerization All The Way

In the recent years, organizations have embraced a range of innovations in cloud computing such as virtualization and containerization. Products such as Docker and Kubernetes have made running business applications much cheaper and cost effective. Containerization has become the basic requirement to run workloads across physical machines as well as multiple cloud environments, and Kubernetes have replaced traditional virtual machine managers. These trends have become the standards to manage containers, virtual machines, legacy workloads, and modern applications.

Desktop-as-a-Service (DaaS) and Virtual Desktop Infrastructure (VDI) have helped by virtualizing workstations, providing them the required mobility and flexibility with cost-effective solutions. According to Spiceworks, 32% of the organizations have adopted VDI, and 12% have planned to adopt. VDI is utilized by 50% of enterprises and 24% of SMEs.

Today, cloud computing is industry agnostic. In fact, sectors from manufacturing, retail, and transport, to healthcare are fast adopting hybrid and multi-cloud solutions to optimize their infrastructure and enhance their revenue.

It is also growing exponentially and has proved to be intrinsic to innovation. Cloud transformation and the evolution of ICT landscape will enable growth of innovative business models, new products and services, and eventually, foster economic growth.

Navelkar is Director, Clover Infotech

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