How can cloud adoption accelerate enterprise digital transformation?

Sudeep Srivastava November 22, 2022

The success of any enterprise is highly dependent on the satisfaction of its clients in the digital age. With the ability to use technologies like machine learning, augmented reality, IoT, and chatbots, among others, cloud computing is a critical component of digital transformation and helps to spur innovation. In other words, we live in an era where cloud platforms are enabling the process of digital transformation at a faster pace.

Enterprises benefit from a cloud-enabled business model because it lowers the complexity of their IT infrastructure, enables them to concentrate on other important areas of digital transformation, and allows them to find additional avenues for expanding their client base.

Since public cloud services are now available in areas that had previously been predominantly non-cloud, enterprise adoption of dispersed cloud has the potential to expedite the cloud transition even further. It can satisfy location-specific needs, like low latency, data sovereignty, and network bandwidth, which is why businesses are considering the cloud for accelerating digital transformation.

In this article, we will first see what digital transformation means and what it entails. Next, we will see what is the role of cloud computing in digital transformation, followed by a discussion on the various aspects of cloud computing and digital transformation such as the benefits for enterprises, strategy for adoption, and the best practices and solutions.

So, let’s dive in!

What is Digital Transformation to Begin with and How It Benefits Enterprises?

When a business uses new technology to redefine its connections with partners, customers, and employees, it is said to be undergoing a digital transformation.

By maximizing internal resources and providing value to consumers, digital transformation creates a fundamental change in how a company functions. But, how does digital transformation actually benefit your enterprise?

  • Streamline coordination across teams: Utilize cutting-edge digital solutions to streamline cooperation across all teams and locations to provide consumers with more value and quicker outcomes.
  • Identify and fix operational issues: Implement new digital technologies to update processes and applications that can resolve any operational issues in the business.
  • Discover more: Utilize the latest cutting-edge tools to focus more intently on smarter business analytics and to produce deeper data understanding.
  • Increase customer engagement: Utilize digital solutions such as data analytics to learn more about your customers’ needs and preferences.
  • Modernize infrastructure: Improve the efficiency of your IT infrastructure by using digital solutions such as serverless computing and cloud computing.

For a complete understanding of how digital transformation works for an organization, check out our guide on ‘Enterprise Digital Transformation’.

What is the Role of Cloud in Digital Transformation?

As we have discussed, digital transformation is the drive toward utilizing digital technologies in practically every part of an organization, replacing outdated business procedures and customer engagement techniques while also fostering new innovations inside the digital business culture.

To stay competitive, a growing number of businesses have begun their digital transformations as we transition to a more digitally advanced society. Moreover, 40% of businesses’ tech budgets were dedicated to digital transformation strategies as of the end of 2019. The COVID-19 pandemic, which compelled industries of all kinds to adopt innovative digital strategies to maintain their business operations, has only expedited this transformation.

A digital transformation involves much more than just switching from paper to digital files for record-keeping. Enterprises have been able to modify their operations to more fully engage customers in the digital age thanks to the introduction of digital devices, apps, storage, and other tools.

These improvements, however, are practically impossible to implement without cloud and digital transformation services. In actuality, integrating cloud and digital transformation solutions is the only way to guarantee that distant workers maintain communication, complicated projects are completed without on-site IT help, and data is kept private while still being accessible to those who need it.

Enterprises are speeding up the digital transformation, with the cloud at its core, as they continue to conduct business digitally.

Some Reliable Data to Support the Claims of Cloud Accelerating Digital Transformation

Cloud technologies will be responsible for more than 65.9% of expenditures on application software by 2025, up from 57.7% in 2022.

According to Gartner, the move to the cloud will affect more than $1.3 trillion in enterprise IT spending in 2022, increasing to about $1.8 trillion in 2025. The emergence of new technologies, such as distributed cloud, will amplify the disruption caused by cloud in the IT business. The distinction between traditional and cloud offerings will increasingly become hazy.

Also, within the addressable market sectors, enterprise IT spending on public cloud computing will surpass investment on traditional IT in 2025.

Cloud Forms the Core of Modern Digital Transformation

The process of digital transformation has undergone a revolution thanks to cloud computing. Data that was previously kept in on-site physical hubs can now be moved to a server network over the internet thanks to cloud computing digital transformation. Thus, analytics, maintenance, administration, processing, and other processes are possible virtually.

Until now, many companies had made investments in powerful networks and servers to support digital growth. This investment frequently posed a serious threat to the annual budget and constrained the amount of development that could be accomplished in a single fiscal year.

It is now possible to convert and extend digital products without blowing the budget thanks to cloud computing and cloud digital transformation. The use of cloud computing for digital transformation has a significant impact on computing power because it allows organizations to reinvent how they manage data and use their newly acquired technology to enhance consumer experiences.

[Also Read: How Cloud and DevOps work together to accelerate digital transformation]

Major Benefits of Cloud Adoption for Digital Transformation of Enterprises

An organization’s digital footprint can be enhanced and expanded using a variety of tools, methods, and capabilities available on cloud platforms. By implementing cloud technology, businesses may automate and migrate in order to manage their systems and accelerate the rate of their digital transformation. Here are some of the ways cloud helps in accelerating digital transformation:

Exceptional Accessibility

The need for apps among businesses is rising continuously. Apps are used by users because of the many advantages they provide, including reduced complexity, improved ROI, and less manual operations.

Apps are being more widely used by enterprises, which increases the demand for management of application integration. These programs may communicate with one another inside a business setting thanks to cloud computing, which also gives users the ability to use them effectively.

Businesses readily use system integration platforms and APIs that offer a variety of approaches for integrating several apps using cloud computing technology. Cloud-based applications can also be accessed from any location using any internet-connected device.

Improved Security

Losing control of infrastructure and data is common during the digital transformation process. But moving data to the cloud greatly lowers the dangers of data loss and illegal access. Protection from potential dangers is provided by public clouds for data, apps, and entire infrastructures. Since backups are generated automatically, there is no chance of data loss at all.

The cloud is becoming more secure because of industry-wide advancements made by cloud service providers. Among the other cloud security techniques that businesses might use in their operations are the following:

  • Following stringent compliance requirements
  • Using multifactor authentication to obtain data access
  • Comprehensive end-user training regarding the importance of cloud data
  • Collaborating with suppliers of managed security operations centers to ensure complete data security

Greater Scalability

The attributes of an application that allow it to handle rising on-demand requirements are referred to as scalability. The virtualization theory of cloud computing states that computers may be scaled to meet the demands of the business, and cloud architecture supports both vertical and horizontal scaling. By dividing workloads among more servers as demand rises, horizontal scaling enables businesses to maintain business continuity while achieving maximum performance.

In vertical scaling, computer capability, such as storage or processing power, can be raised based on business requirements. Dynamic scaling features control the user’s changing needs without sacrificing the speed and operational effectiveness of IT departments.

Enhanced Swiftness and Dependability

Two essential features of business cloud infrastructure are agility and dependability. After acquiring access with an opt-in, services are immediately provided. Cloud applications operate more quickly, improving and accelerating users’ working environments. Additionally, you immediately get capabilities that would take a long time to develop independently.

Furthermore, cloud services are not impacted by hardware failure. You can identify and resolve issues fast with cloud visualization and meticulous planning.

Enhanced Cost Effectiveness

Applications for cloud computing lower the price of buying hardware, software, and operating data centers, which is essential for every business. Pay-as-you-go (PAYG) model, which the cloud introduces, enables businesses to innovate and produce new apps and systems that quickly integrate into the current ecosystem.

The ability to only pay for what you use balances the rising cost of staff, infrastructure, and other activities. In comparison to small to medium-sized firms, which benefit from the cloud by spending 36% less on IT, cloud migration typically results in savings of 15% on overall IT spending.

You may also want to read how digital transformation can reduce your business cost to gain further insights.

Possibilities for Automation

When compared to conventional information-exchange server systems, the cloud presents amazing business automation capabilities. In order to streamline efficient workflow execution in a cloud environment, cloud automation entails employing built-in tools and procedures.

With the help of cloud computing tools, it is possible to automate backups, set up infrastructure as code techniques, manage processes, and fully take care of security measures.

In addition, the cloud efficiently manages the intricacy and adaptability of cloud environments and places a strong emphasis on automating services and virtual infrastructure as a whole. With a well-functioning coordination system in place, enterprises can then start to reap the rewards.

Components of Cloud Digital Transformation Strategy

You probably understand by now how cloud computing and digital transformation may assist modern enterprises in realigning their business processes. The modern digital economy places significance on optimizing different aspects of the business. And to do that, they require a successful business plan.

By taking into account an enterprise’s current structure, goals, and procedures, the following are the essential components of a strategy that are vital to making the right change toward cloud digital transformation:

Technology Choice

By closely collaborating with a cloud enablement partner, you may choose the technologies and establish your requirements. Finding legacy technologies that could cause experience bottlenecks on your overall growth path is a crucial component of this.

Data Requirement Analysis

Before integrating them for the move, a reliable technology partner like Appinventiv can provide a plan for auditing the present data and developing a knowledge base of the new data type.

Process Mapping

This is the most important but challenging aspect of any strategy. The business process must be centered on how to better serve consumers by realigning resources and activities. And more choices must be taken in favor of modifications to the digital user interface that will ultimately benefit the user.

Organizational Alignment

The main focus of this step is developing an attitude of acceptance and cooperation. Change management can be handled quickly with committed IT reps and staff members who are experienced in communicating the new procedures. Easing organizational adjustments in almost every area of business following transformation is the goal here.

Digital Cloud Transformation Solutions

The ideal option for digital transformation with the cloud depends on the requirements of the specific organization in question. There are several potential options out there.

When it comes to assisting businesses in modernizing their client- and back-end-side processes, there are generally three approaches:

Platform as a Service (PaaS)

This solution entails offering a third-party platform on which applications can be developed. As the cloud service provider for digital transformation oversees servers, storage, security, and even networking, a company’s development teams can design and oversee the management of unique applications.

Software as a Service (SaaS)

This well-liked alternative makes use of the internet to distribute third-party managed software for usage by clients or by the company as needed. Applications for cloud-based digital transformation are given on-demand, frequently using a web browser to reduce the requirement for the client or corporate downloads.

Infrastructure as a Service (IaaS)

Cloud infrastructure services for digital transformation are the most complete alternative, including computing resources such as software, hardware, databases, and platforms to let businesses create their own apps. As computing needs change, resources can be bought as needed. In response to shifting computing requirements, resources can be acquired as needed.

Businesses can identify their transformation needs using the cloud for digital transformation, and then adopt one of the preceding solutions to address those needs.

Even though each cloud-based digital transformation solution is adaptable, it is crucial to carry out an audit, identify your current needs for transferring legacy technology, foresee your future needs based on your objectives, and then choose the cloud solution that effectively achieves success.

Cloud Digital Transformation Best Practices

Although every enterprise’s digital cloud transformation strategy will be unique, following some best practices will help you make the transition go smoothly:

Start by concentrating on the participants

Start with your staff since the individuals who will be using cloud solutions for digital transformation should always benefit from them. Ask your clients and business partners how they feel about the technology, information, software, and other elements you currently offer.

Request their feedback on what is and is not functioning. Engage in open dialogue with your staff and ask them to identify any areas where they perceive waste or foresee potential growth.

Pay attention to the data

Maintain your focus on technology advancements, which are at the heart of digital cloud transition solutions. When making judgments, rely on data, and, if you have access to them, consult with IT experts and cloud service providers. Make sure the data is safe and undamaged throughout the transition.

Make your objectives clear

Focus on the final result of the modifications once the specific areas that require improvement have been identified. Without goals, it’s simple to get lost in the countless options and suggestions that cloud solutions for digital transformation offer. Keep in mind that if you reach your primary objectives, more can be done.

Revisit the customer once more

The ultimate objective is to give your customers a more seamless, effective experience. Continue the open discussion and be receptive to hearing any pain points or innovative solutions given after the cloud migration for the digital transformation is finished.

[Also Read: How is Digital Transformation Shaping Customer Experience?]

Be more efficient

Migration to the cloud as part of digital transformation is a quick and effective procedure that aims to improve your future products now. Create a schedule for your digital transformation with the help of a trustworthy partner offering cloud services, such as Appinventiv. Implementing several transitions at once will minimize downtimes and provide reliable access.

What Role can Appinventiv Play in Your Cloud Digital Transformation?

Appinventiv, a fast-growing IT consulting firm, takes pride in using cutting-edge technology to complete projects successfully. We take pride in providing our clients with state-of-the-art cloud services that far exceed their expectations.

Our cloud-based services, including cloud consulting services, tackle your toughest difficulties, from optimizing routine business procedures to creating products and services. With nearly a decade of industry experience and a focus on delivering cutting-edge technology solutions, Appinventiv provides an unmatched comprehensiveness of skills.

For instance, we helped JobGet raise funding for $52 million by creating a cloud-based solution that made them the no.1 recruitment app for blue-collar workers. Similarly, by providing a cloud-based ERP solution, we helped IKEA, with a solution that improved the customer’s online shopping experience.

With experience working with top cloud providers like Microsoft Azure, Amazon AWS, and Google Cloud, we are the cloud management business you’ve been waiting for. Begin your cloud digital transformation journey with us today!

FAQs

Q. How significant is digital transformation?

A. Today’s businesses require rapid, reliable, and useful data more than ever. Issues with data integrity, timeliness, and the accuracy of the information required by company operations to make intelligent business decisions are brought on by flaws in current procedures and technologies. The significance of digital transformation will keep expanding as a result of the world becoming more digital and dependent on data.

Q. What role does the cloud play in digital transformation?

A. The cloud is a driving force behind pursuing a Machine First strategy for digital transformation. It helps an organization automate the business procedures that permit such transitions.

Q. How is cloud migration an enabler for digital transformation?

A. Enabling businesses and clients to access the data from a commonplace enhances the opportunities for innovation. Migrating the application, databases, and other information on cloud provides a flexible and accessible platform for organizations.

THE AUTHOR
Sudeep Srivastava
Co-Founder and Director
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