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. On the other hand, cloud computing is gaining momentum as businesses shift from legacy to cloud systems and organizations push for digital business strategies. It is a widely accepted fact now that cloud Applications offer better functionalities and connectivity than legacy and monolithic systems. Additionally, enterprises get the opportunity to access reliable and affordable technology as they compete to be cheaper, better and faster than others. The world is moving from private cloud to public cloud and now the trend is towards hybrid cloud which is expanding exponentially.
According to global research firm Gartner, public cloud infrastructure as a service (IaaS) continues to be dominated by hyperscale providers and their ecosystems which are driving growth. The public cloud services market in India is expected to grow by 43% in 2017 to a total of $1.9 billion.
“Ongoing new entries into public cloud managed service provider and migration services space indicate continued overall growth in net new and migrated workloads. Hybrid cloud solutions will continue to drive overall cloud adoption and overall IaaS trajectory at the same rate as past quarters,” said Sid Nag, research director at Gartner. The highest growth will continue to be driven by the IaaS that is expected to grow by 42% in 2017, followed by 33.5% in platform as a service (PaaS), further down 33.3% in software as a service (SaaS). The report also predicts that the worldwide demand for IaaS will continue with strong growth through 2021, which benefits the cloud related services market, such as development, implementation, migration services, etc.
Defining the Cloud conundrum for enterprises
Hybrid cloud is an integrated version that uses private as well as public clouds for different functions in same organization. Separate cloud infrastructure operate independently as well as communicate via encrypted connections. Simultaneously, 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 applications.
Benefits of a hybrid cloud business model
Hybrid cloud keeps data exposure at a minimum as sensitive data isn’t stored on public cloud. Also, it provides efficient cloud experience. 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.
“Hybrid Cloud gives enterprises best of both the worlds. Whereas on one hand, it delivers flexibility of private server, on the other it confers advantages of public Cloud,” said Shashank Dixit, CEO, Deskera.
Virtualization and hyper convergence for optimum cloud performance
Hybrid cloud gives SMEs and small enterprises mobility, flexibility, and innovation, facilitating digital transformation and operational skills. This yields in improved customization. Indian enterprises could benefit the most from such IT solutions and boost productivity and efficiency.
Current models incorporate elements of cloud, data analytics, next-generation security, and social mobility. In some industries, the adoption of cloud has led to around 50 percent reduction in production costs such as those in the Oil and Gas sector. In fields such as online insurance sales, the adoption has led to revenues increasing by 15 percent, costs getting reduced by 15 percent, and 25 percent lead conversion.