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Sunday, 17 December 2017 ehdf

How Cloud Computing Adoption Varies Across Industries?

In a recently conducted survey, over 90% of the global enterprises responding had incorporated Cloud Computing as a part of their IT infrastructure. The enhanced viability of high end functionality, lower ongoing costs and the ability to delegate technology centered roles to experts, have all contributed to this rise in the adoption of Cloud Computing.

However, while Cloud Computing is making several businesses much more competitive and able to evolve in keeping with their marketplace, there are also key sectors that are approaching the technology with a little more caution. The finance sector, for instance, is relatively vary of the vulnerabilities of a Cloud based network and infrastructure. Regulatory compliance, data security and performance standards are a concern in this industry and legacy technologies continue to be a preferred option amongst many.

A comparative study of industry verticals lays out a quite stark contrast between ones that have enthusiastically adopted Cloud Computing and ones that have taken a more measured and conditional approach.

Concerns over Adoption of Cloud Computing in industries with Regulatory Oversight:

Verticals with a relatively reserved response to Cloud Computing are often ones handling sensitive and private data – these include enterprises concerned with banking and finance as well as those aligned with public and government regulated services, such as education and healthcare. Their concerns include:

  • Accidental breach of data confidentiality,
  • Cyber-attack by an outside entity,
  • Profit driven data breach by insiders, and
  • Data breaches driven by personal malice – more likely to be by an insider with access but occasionally by an outsider.

Evolving solutions are addressing these concerns as the technology matures. Many of these concerns can be addressed by a higher quality of service and by partnering with a trusted Cloud Services Provider. Enterprises are well advised to invest in finding the right Cloud Computing Services Provider for their requirements. At the same time, it is emerging technologies and processes that will need to contribute to further addressing some of the more non-negotiable requirements.

Adoption of Cloud Computing in verticals with fewer Regulatory concerns:

Industries and sectors that do not handle sensitive data – which is, of course, the majority – have embraced the technology with far greater enthusiasm. The ability to retain the highest levels of service and other best practices, while reducing operational costs, is a win-win that has found several takers. The manufacturing sector, most of the service sector and the retail and commerce sector have embraced Cloud Computing for several of their IT and IT enabled functions, with a gusto. The functions and structure of the enterprises engaged in these sectors offer several opportunities to incorporate Cloud Computing – ranging from manufacturing, internal processes, customer facing services and several more.

Recent evolution in business models is driving game-changing new technologies enabled by an IT infrastructure. The retail sector is seeing a completely parallel model emerge as a complement to its legacy infrastructure, while digital manufacturing promises to usher in a revolution that will change our world drastically. Verticals not inhibited by regulatory oversight are actively exploring these possibilities and are likely to expand the role of Cloud Computing drastically, in their day to day operations.

Looking at likely future trends:

While acknowledging the enthusiastic uptake of Cloud Computing into the functions of a great majority of businesses, there are likely to be several innovations in more regulated verticals that will embrace Cloud Computing as well, in the future. The relationships between doctor and patient, as well as teacher and student – for instance – are likely to be greatly enhanced by Cloud Computing in the very near future. While valid concerns, in both Healthcare and Education, need to be addressed, the adoption of the technology would seem to have too many dramatic upsides to be ignored.

Adoption of Cloud Computing is, clearly, affected by much more than the Technological Context alone. Organizational, Service and Regulatory Contexts continue to play a part in the functions that enterprises are keen on aligning with Cloud Computing.

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