© Copyright Acquisition International 2024 - All Rights Reserved.

Article Image - Six Reasons Why COVID-19 will Accelerate the Rush to Cloud
Posted 14th August 2020

Six Reasons Why COVID-19 will Accelerate the Rush to Cloud

Cloud provides the enabling deployment model for the times in which we live.

Mouse Scroll AnimationScroll to keep reading

Let us help promote your business to a wider following.

Six Reasons Why COVID-19 will Accelerate the Rush to Cloud
the cloud

By: Andrew Brinded, Vice President and Sales Chief Operating Officer, Nutanix

In 1991, the renowned technology journalist Stewart Alsop made a famously wrong forecast. “I predict that the last mainframe will be unplugged on March 15, 1996,” he wrote. But 23 years later, the mainframe is still going strong.

For me, this underlines why it’s a myth that IT is a fast-moving sector in which revolutionary changes occur at lightning speed. The R&D side of tech is certainly dynamic and often disruptive, but because of technological complexity, cost of change, procurement, security, management inertia and myriad other factors, major changes usually roll out slowly, over years or even decades. Even smaller changes can take time to hit the mainstream: think about how long it took for smartphones or laptops to enter the mainstream. In IT as elsewhere, there will always be early adopters, but there will all also always be laggards.

Cloud computing is the biggest IT shift since client/server but, despite its manifest advantages and soaring popularity, cloud has far from dominated the way that firms deploy IT resources. Most established companies still maintain on-premises applications, data and other resources and the trend is very much to hybrid environments where enterprises spread the load across traditional on-premises IT, private cloud, public cloud, co-location facilities and classic outsourcing. Some watchers suspect that the journey to enterprise cloud is only 20 per cent completed.

Quite understandably, CIOs and others have elected to operate on a ‘horses for courses’ basis where workloads are matched to deployment models based on risk levels, information sensitivity, intellectual property, performance needs and other concerns. But I believe that the current pandemic is an event that will see a significant tilt towards broader cloud adoption.

 

The World has changed

After COVID-19, it seems unlikely that we will go immediately back to a reliance on cities, crowded roads and transit systems, offices, galleries and stadia that place individuals’ cheek by jowl with others. Remote working will surely rise and that makes cloud an even more attractive proposition than ever before.

Organisations will need to re-think operations, processes and business continuity, and they will re-engineer business models as they adapt to new realities. In retail for example, shoppers will want different experiences from crowded shops and high streets. That may mean broader pavements, longer shopping hours, limited numbers of people in-store and new ways to pay without cash.

As Mark Kleinman, Professor of Public Policy at Kings College London, has written: 

“Almost overnight, many of the benefits of large, global cities have become vulnerabilities. What was previously greatly desired – crowds, proximity, connectivity, openness – everything that contributes to what economists call ‘agglomeration benefits’ and urbanists call ‘vibrancy and vitality’ – is now feared.”

We don’t know exactly how big such changes will be or how long they will persist but it seems likely that they will mandate unprecedented organisational flexibility. If they hadn’t already realised by now, companies will need to be more flexible, adaptive and agile, so that the next time there is a massive interruption to ‘business as usual’ there can be no excuses. Already we see companies that have been anchored by legacy systems failing to move fast enough and respond to the new realities of virtual business. And this in turn will complete the tectonic shift in favour of cloud computing.

Reasons to move on cloud now

Of course, there are many ways to deliver flexibility, but the cloud is a perfect vehicle in lots of ways.

Centralisation. Cloud offers a hub for managing content where versions of documents and audits are maintained for process order and regulatory compliance. Think of how Box or Dropbox, for example, are replacing lossy processes such as sending email attachments or adding document versions to file shares.

Collaboration. Cloud is a perfect fit for meetings of teams or value-chain networks. Any cloud app is inherently collaborative. That will become more and more important as companies build ecosystems of partners to co-curate and ideate for products and services that stand out from commoditised rivals and can command a premium price.

Cost. With future revenues so uncertain for many companies, managing costs is hugely important. Cloud services usually have subscription-based, utility-like model so prices rise and fall depending on usage. This ensures value and means there is little risk of ‘bill shock’.

Security. Firms need to ensure that with so many more remote workers they have the security protections and policies in place to defend against attackers. Although security has traditionally been a concern or an objection to public cloud adoption, cloud services have an advantage in that they tend to be run via highly proficient data centres with more security skills on tap than enterprises can afford. However, firms will still need to educate staff against phishing and similar scams and ensure that tools such as VPNs and encrypted networks are available. 

Choice. Some firms will be understandably concerned about potentially being locked into a single dominant provider than can then have too much control over customer options. However, the intense competition and price cutting among the biggest providers mean that companies that build out using a multi-cloud model will retain the openness they cherish.

Testing. Many companies will still need to be able to test new and reworked processes during and after the crisis. Cloud platforms provide the testbeds to enable this, without high cost penalties or risks being incurred.

Hiring. When the economy bounces back, hiring will again become a critical battleground and companies that aren’t heavy cloud users will become less attractive to younger candidates especially.

As I outlined at the outset, there’s no such thing as an overnight hit in IT, but look out for cloud-related opportunities for both short-term benefits and for future strategic importance. Cloud is already big, but it’s about to get bigger.

Categories: News


You Might Also Like
Read Full PostRead - Eye Icon
Zegona Acquisiton of Telecable
Innovation
03/08/2015Zegona Acquisiton of Telecable

Zegona Acquisiton of Telecable

Read Full PostRead - Eye Icon
Building the Future of Construction
Innovation
13/10/2021Building the Future of Construction

Having received the accolade of the ‘Best Building Enclosure Products Manufacturer’ for 2021 in the USA, MaxLife Industries will use its new flagship product to inspire innovation in the building materials industry.

Read Full PostRead - Eye Icon
Businesses That Help Boost the Circular Economy
Corporate Social Responsibility
20/01/2022Businesses That Help Boost the Circular Economy

Here, we explore businesses that were created with reusing and recycling as their core purpose and why they’re important for the wellbeing of the environment.

Read Full PostRead - Eye Icon
Employment Survey – Good News for Managers and Professionals
Leadership
28/04/2015Employment Survey – Good News for Managers and Professionals

A regular global survey of hiring and firing trends covering more than 9,000 organisations in 30 key countries has found job prospects for professionals and managers continuing to improve.

Read Full PostRead - Eye Icon
Providing the Best to Clients
Legal
10/01/2018Providing the Best to Clients

OMC Abogados & Consultores (OMC Abogados) is a firm that provides legal assistance to companies in the private and public sector.

Read Full PostRead - Eye Icon
Ambienta Acquires a Majority stake in SF-Filter AG
Finance
09/02/2016Ambienta Acquires a Majority stake in SF-Filter AG

Ambienta, the largest European private equity fund specialised in environmental businesses, today announced it has acquired a majority stake in SF-Filter AG, Zurich, a successful specialist for filter solutions with sales of about CHF 80 m.

Read Full PostRead - Eye Icon
One Machine, More Freedom
News
01/08/2022One Machine, More Freedom

SkyRunner, LLC is a privately held aircraft manufacturing company headquartered in Shreveport, LA, USA, which designs and manufactures the MK 3.2, a special light sport aircraft for civilian and military end users.

Read Full PostRead - Eye Icon
How to Choose the Right BI Consulting Provider
News
02/12/2022How to Choose the Right BI Consulting Provider

As the volume and variety of data soar, enterprises require more advanced analytics tools. Therefore, increasingly more organizations upscale their investments in business intelligence (BI). According to Industry Research, the global BI market will reach $35,3

Read Full PostRead - Eye Icon
Cargill Beefs up Capabilities, Commitment to Protein, with South Carolina Plant Purchase
M&A
04/03/2016Cargill Beefs up Capabilities, Commitment to Protein, with South Carolina Plant Purchase

People in the eastern United States enjoy good beef burgers and beginning this spring Cargill will be able to better meet those needs through the acquisition of the FPL Food, LLC ground beef processing plant in Columbia, S.C. Purchase of the 100,000-square-foo



Our Trusted Brands

Acquisition International is a flagship brand of AI Global Media. AI Global Media is a B2B enterprise and are committed to creating engaging content allowing businesses to market their services to a larger global audience. We have 14 unique brands, each of which serves a specific industry or region. Each brand covers the latest news in its sector and publishes a digital magazine and newsletter which is read by a global audience.

Arrow