Why businesses must make a strategic shift
Cloud has evolved to be the most significant technology shift in the history of computing. Initially adopted for the promise of flexibility, agility and scalability, there’s now a huge opportunity for modern enterprises to leverage cloud to drive revenue. Research from SG Analytics found that 94% of enterprises already use some kind of cloud service, and adoption will only continue to grow, as Gartner predicts that end-user spending on public cloud services will increase 21.7% from 2021 to reach $482 billion in 2022. However, businesses must make a strategic shift if they wish to make the most of what cloud has to offer.
As enterprises continue to invest heavily in the cloud, it’s vital for them to go down their cloud adoption journey with a longer term vision. The cloud is not merely a cost savings opportunity but is a core driver for innovation and increased ROI (if done right).
Viewing cloud as a revenue generator
Cloud has become an almost guaranteed money-saver, enabling digital transformation and actionable insights that can be used to keep costs down. But there are still issues preventing organisations from maximising their savings. For instance, vendor lock-in can stop businesses from achieving the best possible price performance ratio. Also, a lack of control over data or infrastructure means organisations have to spend more in order to create the exact architecture they need. Waste is another issue, with many organisations investing in unused cloud services just to access what they actually need.
Yet even after addressing these issues, organisations focused purely on cost-saving will eventually hit a point of diminishing returns, as further savings become harder to make. Instead, a change of perspective is needed to see the cloud as a money-maker to ensure both efficiency and profits. For instance, operational insights could be used to create new services that generate extra revenue and deliver operational efficiencies.
Those enterprises that do change their thinking will soon see the benefits – such as significant improvements to the end-user experience and increased innovation. This could result in improved business models; new crossover points for omnichannel services; or a fully rounded 360-degree view of customers.
Setting the wheels into motion
Organisations should begin by plotting their revenue goals and examining how technology can best facilitate them. Next, they need to get creative. Cloud enables a huge amount of flexibility, where anything is possible with multiple opportunities for ongoing innovation and delivery of services. For example, cloud could be used to accelerate product development, speeding up the time to market. It could also offer easier access to products via a digital marketplace, where end-users can simply select the application they wish to use.
By seeing the cloud as an engine of innovation, the world suddenly opens up. It’s this mindset which will prove instrumental to business success. By examining how the cloud interacts with emerging applications such as edge computing, organisations will unlock new realms of possibilities.
Embracing the potential
Those that have embraced this new approach are already reaping the benefits. This isn’t surprising given that McKinsey estimates there’ll be $1 trillion of cloud earnings up for grabs by 2030.
One such example is telecom company BT, which turned to the cloud to rapidly bring new products to market, meet performance demands and improve its interactions with customers. The cloud sped up BT’s sales cycle and provided a far better customer experience through the rapid provision of more content and services to more people. It also ensured low latency and high throughput so peaks in viewer demand could be supported at all times. In addition, the system could handle an increased number of transactions to ensure a personalised service and cross-device streaming.
A cloud positive future
As cloud continues to grow in popularity, it’s this new approach which will help businesses to go above and beyond. By making cloud a core focus and assessing it for its ability to make money, organisations can unlock new innovations and revenue streams. It’s this strategic mindset that creates a competitive edge, with greater agility and a cloud positive future.