Digital transformation is a big business. According to a survey by 2020, 83% of enterprise workloads will be transferred to the cloud and along with this on-premises workloads are predicted to shrink from 37% today to 27% of all workloads. Undoubtedly, the reason to embrace the cloud is no longer a matter of debate. With the evolution of the cloud, each industry has become increasingly technological. The cloud seemed to be a prerequisite for business survival from being a marketing disruptor.
Despite the universal acceptance of digital imperative, many are still left with cloud in their minds. What does digital transformation actually mean and why is cloud a catalyst for this change?
What is digital transformation?
Digital transformation represents an overall description of how an enterprise use technology to tap into new information and service-driven revenues. New business models have subsequently emerged out of adapting new modern ways of business in today’s hyper-connected age. Modernization has become the way of moving ahead faster.
In today’s faster-moving market, it has become important for organizations to respond to the marketplace quickly. With the increased cyber-attacks, and the emergence of a new breed agile competitors that are more people-oriented, innovative and customer-centric, a business must rethink the way they consume IT infrastructure.
What role does cloud play in digital transformation?
Cloud is both: enabler and driver of digital transformation, as it is beating the heat of this shift in mindset, processes, and systems. It represents the eye of the digital storm, changing the way the business uses technology to streamline the entire organization from top to bottom. This has completely altered the landscape of the business world, creating more opportunities for operation and acceleration.
Enhanced Business Agility
As a dynamic workforce model that represents a low risk and high performing solution, cloud technology allows for continuous optimization across the organization. This kind of flexibility cannot be provided when using on-site physical solutions. With the best offering of product development and IT support, cloud technology ensures that businesses can easily integrate tools with their objectives and in response to ever-changing security regulations and market disruptions.
Improved Business Productivity
Digital transformation has a lot do with the unfettering business from the restraints of legal IT systems, which are a significant burden on the company’s bottom line. The pay you use is cloud-centered which means you can allocate the resources that provide value to the company. The reduction of wasted IT resources inhibits the investment in new digital services allowing the business to better see and manage their spending.
Moreover, when it comes to deploying storage solutions, the cloud is undeniably a more suitable solution, than on-site solutions. SaaS deployment is virtually non-existent compared to on-premise platforms, as the IT team has to spend more time in the installment of infrastructure. Not only this, but it also helps to remove the pressure from the IT department of purchasing additional resources that are required for maintaining performance and installing the latest updates.
The cloud application market is expected to increase by 17% by the end of 2020. Each sector is driven by the emergence of new applications, and models with a ready market to adapt the changes. Cloud technology also facilitates flexible, on-demand access underpinning these new digital business offerings. In addition to scalability, the cloud also offers flexibility and elasticity that is required for the growth in accordance with the workload changes within the infrastructure.
Digital transformation is imperative and important for business survival. A business that offers solutions for cloud migration is supposed to maintain an effective balance of agile innovation with continuity, reduce security risk, and IT costs. That business that is reluctant to evolve with tomorrow’s technology will be left behind in a vortex of turbulence.