When companies shifted quickly to remote working, there was a significant change to cloud-based technologies and solutions. This period also compelled many C-suite executives to accelerate their cloud migration plans.
Cloud spending rose by 37% to $29 billion in the first quarter of 2020, according to PwC reports. In the early stages of the pandemic, Amazon Web Services (AWS), Google Cloud, and Microsoft Azure saw unparalleled demand.
According to this new study, businesses must embrace the cloud and accelerate digital transformations. In the last ten months, 29.5 % have accelerated their digitization efforts, while 17% have slowed their plans due to the pandemic.
While the cloud provided many of these entities with a lifeline, they must now plan for future continuity incidents. This would undoubtedly result in the rapid elimination of physical data centers and humans from their supply chains, implying that companies will depend on their cloud infrastructure and platform service providers more than ever before.
Modernization of the cloud
This wave of businesses moving to the cloud is expected to continue into 2021 as businesses navigate the future of work in a post-pandemic environment, with Gartner predicting 18.4% growth in public cloud services in 2021. Throughout the year, businesses should expect to see a new type of cloud-based business value: business continuity-led situations. The business continuity needs of companies have been reset at an unparalleled scale, and they will now embark on cloud transformation programs to ensure they work efficiently when they are struck by similar crises in the future.
IT in the boardroom
While several companies recognize the potential and significance of technology, COVID-19 has become a catalyst for elevating technology decision-makers. Businesses have all relied heavily on technology in the last year. It has kept companies running and people connected. IT teams are now taking a front seat, with board members and leadership teams prioritizing decisions on technology strategy and investments, as they have firsthand evidence of how critical IT is to a company’s sustainability and future.
Businesses have noticed that COVID-19 has had a significant impact on the CIO role, among other things. According to the IDC report, 45% believe that their working relationships with enterprise leaders have strengthened as a result of the pandemic, and they’ve begun to see IT as a department that enables their business. 55% of CIOs have expanded their company’s reach and occupy boardroom seats.
This shift in decision-making would almost certainly result in an increase in businesses investing in modernization in to function as organizations based on modern cloud technology. In a nutshell, this will be the age of business transformation.
If 2020 taught businesses something, it’s that they can’t predict the future, but organizations can predict the cloud industry’s continued growth. Companies have recognized the true value and significance of cloud technologies, which will continue in 2021 and beyond.
When considering how companies are modernizing their environments, they must keep in mind that it is not the strongest that survive. It is the one that is the most adaptable to changes. Organizations must be able to accept change in general, not just technological change. Small areas of the business such as collaboration, driving in the same direction, pursuing the same goal, operating in an agile manner, and concentrating on business results are a few examples.