Cloud computing is a fast-growing industry that has generated over $270 billion in 2020 and is on track to reach $332 billion this year. Even before the pandemic, we were already seeing a massive shift towards cloud computing, but now, in an age where digital transformation seems to be the only way to survive the pandemic crisis and stay relevant, the importance of cloud services has reached astronomical proportions. According to recent data, 81% of organizations have already embarked on a multi-cloud strategy, and it is estimated that by the end of 2021, as much as 82% of all workloads will be on the cloud.
In 80% of cases, organizations that switch to the cloud see the benefits in just a few months, reporting not only that their operations are more secure but also that cloud applications are cheaper and easier to maintain than in-house systems. In 2017, the average employee was already using more than 30 cloud-based services on a daily basis. As more organizations embrace the remote work model, we can expect this number to grow even more in the following months.
Cloud solutions are flexible and scalable, adapting to the needs of your business, regardless of its size. Due to this, cloud solutions can benefit multiple industries, not just the ones we would normally describe as tech-oriented. In fact, if 2020 has proven anything, it’s that almost every industry can become more efficient thanks to the cloud. That being said, some sectors are more willing than others to embrace the cloud and are already planning to boost their cloud infrastructure spending. Here are some of those industries:
Manufacturing
According to the International Data Corporation (IDC), the manufacturing sector is particularly curious about cloud services, planning to spend $20 billion on them. Although this interest isn’t new — in 2017, about a quarter of finished products were made using some kind of digital technology — the pandemic has accelerated this trend. Now, manufacturers everywhere rely on cloud services to streamline their operations, from production and stock tracking to collaboration and productivity management. Thanks to cloud native development services, manufacturing companies can receive solutions adapted to their needs and thus manage their operations much easier. Because cloud services are scalable and can easily be integrated into existing systems, they don’t require long transition times, and they can ultimately improve operational efficiency. Cloud solutions streamline every step of the manufacturing process, from the way products are designed to the way they are produced.
Retail
Retail is one of the largest generators of data worldwide, and it needs cloud services to store, manage, and track this data. It should also be pointed out that retail is currently undergoing a major transformation and, as more and more customers prefer shopping online, retailers need to adapt and embrace digital transformation. In 2020, Forrester Research conducted a study on the use of cloud services among retailers in North America. Unsurprisingly, 77% of responders said that cloud is either moderate, high, or a critical priority for them.
As for the applications of cloud services in the retail industry, these vary from inventory management and expense management to data analysis and customer relationship management. In a world where physical retail is becoming outdated, cloud applications reduce the need for complex infrastructure, allowing sellers to adapt quickly and meet customers on their desired channels. At the same time, cloud services also make online shopping experiences more secure.
Banking & Finance
Traditionally, banking & finance have a reputation for being conservative industries that rely heavily on paperwork and where every request is slowed down by administrative hurdles. Almost everyone has been in a situation where they needed a loan, and they had to go to multiple banks with a handful of paperwork, only to wait a week until their request was processed and then even more until the funds were wired to their account. This is the direct result of outdated systems, but, fortunately, we’re finally beginning to see change thanks to cloud services.
According to a recent report, finance and banking providers plan to invest $16.7 billion in cloud services in 2021 and fully embrace digital transformation. It’s the biggest opportunity the industry has had in years, one that can change the way people perceive finance. For example, finance companies can now build apps that allow clients to open an account, make transactions, and even take out a loan. This way, they no longer have to go to a bank physically, and employees no longer waste time on repetitive tasks. Chatbot integration is also a major opportunity, as it boosts efficiency in the customer service department and allows clients to get quick responses to simple queries.
Cloud services can also make financial services more efficient. For example, one of the main reasons why bank loans take so long to approve is because the client’s profile needs to be analyzed. However, if the bank, or another financial institution, uses cloud-based applications, it has easier access to the client’s data, and they can give them an answer in as little as 24 hours. At first, cloud integration in the finance industry was a niche (FinTech), but lately, it has expanded to banks because clients demand better services.
IT & Marketing
IT and marketing are the two sectors that have managed to adapt quickly to the transition to remote work, and that’s because they were either using cloud services before the pandemic or were in the middle of the transition when the pandemic started. Cloud services can improve IT and marketing companies in just about every department: from helping teams collaborate when they cannot see each other face to face to accessing in-depth analytics and streamlining project management. In short, cloud services can help IT and marketing companies innovate by focusing less on repetitive tasks and more on understanding customer needs.
Manufacturing, finance, retail, IT and marketing, are just a few of the industries that have invested heavily in cloud infrastructure in the past years, but they’re not the only ones. Other notable examples include accommodation, healthcare, education, real estate, and even Government.
With the necessity for complex data processing increasing, cloud computing has become a necessary component of computing requirements in all industries across the globe. It has delivered organizations more productivity while being cost-efficient.