Digital Transformation disrupting business models
Cloud technology affordable & scalable for small businesses, startups, SMEs
Enterprises wanting to go in for digital transformation are often confused as to what technology they should use, as this space is changing rapidly. To be able to compete in this era, enterprises need to be agile and flexible. Digital transformation is changing the world in unimaginable ways. Digital disruptors like Uber, Ola and Airbnb, who are born-in-the-cloud, are transforming business models. Enterprises going in for digital transformation are confused what technology to use as tech is changing fast. To compete, enterprises need to be agile and flexible and cloud computing can provide them the momentum to shift from legacy to cloud systems and push for digital business strategy.
“There is no industry, which is left untouched. This is the impact of digital disruption. The scene is changing very fast and there is an uncertain atmosphere over the business world as traditional businesses feel the heat. According to a report, 78 percent businesses in the USA feel the challenge from digital transformation and 52 percent of them see a decline in business. Cloud is the only way forward in a highly digitized world. Around 48 percent enterprises are still in experimental stage. Only 5 percent are the only ones that are there. The rest are clueless about the future. They must take all measures to bridge the gap. Also, the present generation of innovators change and adapt rapidly, which is shifting goal posts for conventional enterprises,” said Shashank Dixit, CEO, Deskera.
Virtualization and hyper conversion for optimum cloud performance
Cloud gives SMEs and small enterprises mobility, flexibility and innovation, at the same time facilitating digital transformation and operational skills. This yields improved digital customization. Indian enterprises can benefit from such IT solutions and boost productivity and efficiency. Current business strategic models have data analytics, next-generation security, cloud, and social mobility woven into them. In industries, the cloud adoption has led to 50 percent reduction in production costs such as those in the Oil and Gas sector, healthcare, etc. In sectors like online insurance sales, adoption has led to revenues increasing by 15%, costs reduced by 15%, and 25% lead conversion.
In fact, cloud applications offer improved functionalities and connectivity than legacy systems. Additionally, enterprises can access reliable and affordable technology as they compete to be cheaper, better, and faster than other organizations. Businesses, internationally, are moving towards cloud, including hybrid cloud.
There are many types of cloud technology. There is private, public and hybrid cloud. Hybrid cloud uses private and public clouds for functions in the same organization. Separate cloud infrastructure operate independently as well as communicate via encrypted connections. Enterprises utilize technology for data portability and applications. It helps organizations locate sensitive data on private cloud while it retains advantages of a public cloud to run Information Technology applications.
Benefits of a cloud business model
While on the one hand, the technology is affordable, it is also scalable, especially ideal for small businesses just starting out, including startups, SMEs, etc. It provides agility to small businesses as well as gives them a competitive edge. Large corporations are usually burdened with capital intensive legacy systems, which are unprofitable. With the hardware at one place, capital gets stuck in systems that have to be replaced anyway, although this cannot be done overnight. Plus, there are maintenance costs also involved that make operations unviable. Major Information Technology companies are stuck as to how to abandon a big portion of investments.