7 industries that will blossom due to advanced cloud computing
By Kamal Jacob
There is so much happening around the growth of cloud computing and the popularity it has been gaining across different industries. Businesses have started to realize that if they have to be a step ahead of their competitors or on-par in the marketplace, embracing the cloud is the way forward. Failing to embrace the cloud can leave businesses left out from the business race. However, every industry has its own pace of cloud adoption. For example, banking becoming completely digital and moving away from branches, and e-Commerce industries taking over retail stores. These business industries have a faster rate of adoption of cloud technologies when compared to retail and manufacturing industries. In this article, let’s take a look at 7 different industries that will reap humongous benefits of cloud computing –
The retail industry is amidst a transformation phase where the focus is shifting from the retailer to the customer. In order to be competitive, retail merchants are forced to deliver new and innovative business techniques to survive the competition.
According to a recent study by Markets and Markets, the retail cloud market is expected to grow from $11.06 Billion in 2016 to $28 Billion by the year 2021. For merchants, the cloud offers the following benefits – lesser cost and time, scalability and flexibility, ability to access customer data from anywhere and anytime, gather analytics to understand customer shopping behavior and targeting the right customer with special discounts, and so on.
Chai Point, India’s largest chai retailer with ~ 100 retail stores and on-demand chai delivery services runs its infrastructure on Amazon Web Services (AWS). The reliable and scalable AWS infrastructure – comprising of Amazon Elastic Compute Cloud (Amazon EC2), Amazon Simple Storage Service (Amazon S3), and Amazon Relational Database Service (Amazon RDS) – helped Chai Point to scale and deliver more than 150,000 cups of tea every day.
Talk about the healthcare industry and the challenges it presents to migrate to new technology – the number of legacy systems, sensitive patient data and the number of integrations. Security plays a pivotal role in managing this information and healthcare data management systems are qualified enough to maintain security. According to the recent BCC Research Report, the value of global healthcare cloud computing was $20.2 Billion in 2017 and is expected to reach $35 Billion by 2022.
Moving to the cloud helps healthcare organizations to store more data at lower costs. In compliance with the healthcare regulations, one of the key requirements of the healthcare industry is “Collaboration” and the cloud gives professionals the perfect platform to share medical records and access them from anywhere without any delay to deliver the best care.
Apollo Hospitals, one of the largest hospital chains in India, uses the Power BI capability of Microsoft Azure for efficient management of their real-time remote site data from multiple clinics. The post clinic inspection survey results are used in Kaizala to perform a virtual inspection to make sure the clinics are clean and tidy.
One other industry that depends on large customer data is the banking industry. Given the complexities involved with banking in terms of security, cloud technology is the best transformation solution for the business that delivers security to the data and becomes scalable to handle the customer data. In 2018, IDC predicted the banking industry to spend $16.7 Billion and to be among the top industries with the fastest spending growth of an aggregate of 23% over the five-year forecasted period.
When implemented in the right way, the cloud helps banks to become flexible to meet the volatile consumer market needs with ease. Cloud also improves operational efficiency by allowing them to integrate with other technologies to increase their productivity. Overall, cloud implementation helps the bank to focus towards delivering better and customized customer service.
ABN Amro Bank took advantage of Microsoft’s Azure Active Directory Migration Service (ADMS) migration technique to migrate user accounts to a single Active Directory domain. With the help of Microsoft Enterprise Services, ABN Amro was able to perform the migration without any risks.
4. Entertainment and Media
Similar to the healthcare industry, the entertainment industry is on the slower side to embrace cloud technologies given the concerns over security and privacy of the content. On the flip side, media businesses are also facing the push to be competitive in the industry and increase their profits. Overall, cloud computing can deliver benefits for media businesses both in terms of security as well as scalability without any compromise on the safety of the data. Media companies can embrace cloud to deliver enhanced user experience in terms of quality of content when there is peak demand, and later scale down during the normal period.
The best example is Netflix and their migration to Amazon Web Services (AWS) to ensure scalability to meet the increasing data volumes. By opting for cloud infrastructure, Netflix managed to create a Microservice architecture which made them become more agile and as well, build a diverse ecosystem of tools faster.
As the supply chain becomes more complex and longer in terms of process, logistics companies are forced to deploy software systems that can cope up and continue to deliver end-to-end visibility. According to Logistics Management, results of the survey indicate that about 48% of the people are planning to evaluate cloud systems for their LMS, slotting and order management, TMS/WMS and so on, while 38% prefer to use cloud for monitoring of unexpected failures, and 28% prefer to use cloud to collect and manage data about their truck fleets.
Logistics is a highly volatile industry and businesses have to be predictive as well as responsive to stay in the competition. With a cloud architecture in place, logistics businesses can take advantage of rich dashboards, get end-to-end real-time visibility of the system and view analytical data if something goes wrong.
Alpega is one of the leading experts in transportation management software solutions and services. By implementing real-time processing on Google Cloud Platform, Alpega reduced their processing time by almost 90% using Google BigQuery. A year of detailed data is available in less than 10 seconds instead of a minute. Another example of a leading logistics company is Lufthansa which uses robust tech stack for seamless freight forwarding services.
The education industry also has its fair share of transformation thanks to the cloud computing technologies. From online learning portals to the information systems of students in schools and colleges, cloud computing is widely used in the field of education. The cloud ensures that both students and their guardians, and the staff have access to the data anytime. Statistics say that more than 75 percent of institutions have moved to the cloud and decreased their infrastructure costs significantly. Institutions can get away from costly textbooks for students to have online cloud-based textbooks that reduce the cost of procuring the textbooks.
For instance, the Canberra Public Schools in Australia have embraced the G Suite and Chromebook for their students and staff to foster increased collaboration. With over 50,000 students and teachers in the institution, Google Cloud brings in a competitive and collaborative environment among the students and helps them to improve their performance. Moving to the cloud also means potential cost savings and a shift from the CAPEX to an OPEX model where institutions only have to pay for what they use.
With manufacturers global spending on cloud computing platforms predicted to reach $5.18 Billion by the end of 2018 by IDC, the manufacturing industry is also seeing the growth with the aid of cloud computing. With the cloud technology, businesses bring in the speed, accuracy and scalability capabilities into their operations. At the management level, the cloud helps businesses make more informed decisions, improve on the product quality and deliver the best to customers.
With the cloud infrastructure, Information from multiple sources in the organization can be brought together and visualized in a single dashboard with real-time tracking. With greater insights instantly available, manufacturing cycle times can be reduced which makes the manufacturer more competitive in the business.
While this article covers the top 7 industries that will see the growth due to cloud computing, this is not the end of the list. Cloud has the capability to offer flexibility and the capability for the business to scale and adapt based on the market demands. However, the rate of adoption varies across different industries and primarily depends on security and the features required.
Feel free to let us know your thoughts on how the cloud will impact the other major industries. Also, if you are interested to pursue a career in this field, make sure you check out our Post Graduate Certificate Program in Cloud Computing course.