Cloud & Innovation in the High Tech Industry: The Co-relation that you must think of

The Covid19 pandemic has caused a lot of business disruptions and questioned the resiliency of high-tech companies all over the world. According to HBR (Harvard Business Review) Analytics report, around 81% of the high tech companies have fastened their cloud-adoption schedules due to the pandemic.

Also Read: COVID-19: A Random Pandemic or an Event to change how World Operates?

Boosted Cloud Adoption: What is the Cause?

The growing demand for contactless delivery for customers, their desire for over-customization, and 24×7 Support could have put high-tech firms in a fix. But a significant number of such companies have opted for the cloud adoption and the rest have considered revising their pre-pandemic cloud approach to conquer the challenges in this crisis time.

While diving into cloud-enabled change for added value and smashing into competence and gains on operational cost, high-tech enterprises have realized increased agility and productivity in a remote culture.

Cloud innovation has proven a key differentiator in their market segment when it comes to confirming ever accessibility of an on-premise digital setup. It is no longer a trend but rather, an alternative. So, what factors will keep them ahead in this game, and how can even CIOs and CTOs think of quickly adding to their enterprise growth with cloud-led innovation?

Also Read: Brand Identity Guide for CIOs – 3 Aspects that you never miss out

Cloud – Point Vortex for Digital Transformation

Cloud technology was recognized as a key driving force for the high-tech industry almost two decades ago. Since the industry is now hit by a row of social, technological, and economic uncertainties due to changed customer behaviors and mode of operation, the cloud platform has become an inseparable component of high-Tech companies.

Top Reasons for Cloud Adoption in the High Tech Industry

By now, many high-tech businesses are seeing good at following the cloud technology option. Moreover, they have started using this technology to efficiently manage their organizational data, ensure better connectivity, security, and effortlessly scale their IT infrastructure as per needs. 

  • Robust and Effective Data Flow/Management

As uninterrupted data delivery continues to be the main concern in the post-Covid era, the cloud has caught the attention of many high-tech firms. It can be integrated with data-driven applications configured on-site to support the smooth flow of data from highly structured resources at better speeds and in huge volumes.

Cloud features among inventive products programmed with agile, scalable, and responsive features. High-tech businesses often feel the pressure to consider pre-analyzed insights gathered from huge data lakes around them, passing on value to the end-user or failing miserably. Hence, a cloud-oriented strategy is crucial for effective data management than any traditional data center on-site.

  • Cloud-managed security services

The cloud shares the in-house workload of enterprises and supports multi-tier/user access to different levels of data stored while keeping away the possibility of cyber-attacks and data breaches.

The cloud assures to protect data and safeguards the identity of the user by following modern-age security architectures. Client/terminal authentication, access control (regulate/monitor permissions), encryption, data anonymization, integrity checking, serialization, and data masking are all part of cloud deployment.

  • Cloud scalability: Upscale/downscale on demand

Apart from being simple, secure, and quick to connect, scalability (upward/downward) is one of the wonderful qualities of the cloud. This allows enterprises to balance their workloads by scaling/adjusting their IT resources and network bandwidth based on demand (during peak/ open hrs). As a result, enterprises can run efficiently without any waste of money and infrastructure.

Options and Use of Cloud in Enterprise Product Innovation

Enterprises are migrating to the cloud mainly for scalability, agility, quick deployment, and cost-savings on IT operations. The use of the cloud also assists product development and innovation in the modern digital world if done right. The most common use cases of cloud in high tech enterprises are as follows:

  • Rapid prototyping of new products/services and easily roll them out to the market at reduced costs.
  • Power of crafting highly customized user journeys with cloud-managed data strategy and toolset that are cross-integrated.
  • Embracing the goal of standardization, modularity, and technological advancement (AI and IoT) in biopharma, manufacturing, and many more industries.

Also Read: Rehost, Replatform, and Refactor – Which Application Migration Strategy to Choose and When?

Financial Advantages of a Cloud Subscription Service

The cloud is the best way for high-tech firms to build their revenues and move toward subscription-based plans, where they will consume more technology but pay less for accessing, even without purchasing or owning it.

An increased number of high-tech companies are now exploring the cost-effective XaaS (anything-as-a-service) subscription model. It is projected to grow at a 25% CAGR rate up to 2027 given the changed customer (B2C and B2B) behavior. They show an increased preference to be in charge of their expenditure across different areas. This is the reason behind the popularity of XaaS subscription models offered as a monthly or yearly plan.

These subscription models are creating the possibilities of bringing all technical tools and capabilities under one roof in B2B/ B2C organizations and spreading out their wings. High-tech businesses are go-getting to subscribe to XaaS models to stop revenue loss by automatically restricting pay to a use basis. Eventually, they will be able to bring more reliability to revenue prediction and build a roadmap for guaranteed success with the help of the cloud.

Choice and Priority for Cloud Investment in Organizations

CIOs and CTOs should not often get caught between buying vs. building decisions. Nor do they have to decide cloud adoption based on IT infrastructure alone as it may create issues regarding compliance, implementation, network security, and scalability risk.

The best value through cloud adoption comes from improved product innovation, agility and resilience brought to the high tech business at a persistent rate.

Most of the time, this demands to focus on cloud adoption on combining reconfiguration, reusability, and re-hosting so investment in phased modernization can be quickly realized across the enterprise.

This cloud-based approach when chosen by CIOs based on their exact business process can help them point out where the maximum benefits can be earned, without analyzing each application separately for possible cost-efficiency.

Cloud-enabled Hybrid/Remote Work Culture

Cloud adopting high-tech organizations have enjoyed greater growth and built flexible workplaces throughout the pandemic. Hybrid working models have been emerging as a new trend along with remote connectivity (work on the go) across geographical boundaries.

High tech organizations will no longer be limited to on-sites as employees can access resources from anywhere; the pandemic brought lockdown along with it, but cloud adoption shot to fame in helping businesses run from anywhere. This is evident in the rising number of cloud service providers who have extended technical support to businesses in creating, innovating, collaborating, and building hybrid/remote culture, with no shutdown/slow down.

The following are the added advantages of cloud usage in hybrid/ remote work culture:

  • Cloud ensures smooth connectivity and access:
  • Decrease in IT infrastructure/operation costs:
  • Manage better compliance and security 

Precautions that you Must Take while Adopting Cloud

  • A Shift from Optional to Important

Cloud strategy is a must-have component the high tech industry can now think of growing without. It supports remote operations, smooth and immediate expansion, and reduces overhead costs if an enterprise cares to switch to the cloud with proper planning and execution.

  • Losing Profit Margin on the Lift-and-Shift Cloud Migration Approach

A lift-and-shift is the easiest approach enterprises could think of moving their data and applications to the cloud platform. It requires no or little changes in the settings and keeps the data as it is which kills value. CIOs should work on a strategic roadmap for cloud adoption with the right mix of modernization factors – such as re-platforming, refactoring, rehosting, redesigning, and modularization. It will add to their profit and sustainability.

The Crux: High Tech Industry is Up For a Data-driven Future 

The future of the high industry is growth-oriented. When chosen and deployed correctly, cloud technology can stimulate the data-driven culture of high-tech businesses, which means they would make tactical decisions with proper data analysis and management. Their consumers and customers will have better services, products, and experiences through smart associations and quick reach in the cloud.

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