After whatever has happened in the past three quarters, one thing that we can say with a great deal of conviction is that in 2021 Cloud Computing will be at the core of any CIO’s or organisation’s IT strategy. It will be primarily cloud that will help companies adapt to the disruption and also assist in the next phase of growth. It is yet very uncertain how long the businesses will continue to follow the remote working policy but it’s absolutely clear that every enterprise has to become more agile, responsive, and adaptive than ever before to serve their customers and keep up the experience they expect in these dynamically changing times. And that is only possible when the companies look at cloud as their primary IT infrastructure to build services and microservices.
For a while, if we look back at how the public clouds have taken shape in the last one decade or so, it almost seems like they were being prepared and designed to handle the unexpected disruption that we saw during the Covid-19 pandemic. Not only did the pandemic forced millions of us to start working remotely (almost) overnight, but also changed the way IT organisations and software development function.
Without a cloud-native, cloud-first approach, or software development that’s doing using the elasticity that cloud offers, it would have been literally impossible to respond to the demands created during and after the pandemic.
According to estimates, enterprises’ average cloud spending is up 59% from 2018 to $73.8M in 2020 (and this certainly doesn’t account for the spike during pandemic). Cloud technologies are now embedded in enterprises’ business strategies, as 92% say their IT environment (infrastructure, applications, data analytics, etc.) relies on the cloud. So much so that 32% of IT Budgets will be dedicated to the Cloud in 2021, say some analysts.
Gartner estimates that spending on public cloud services in India is expected to grow 29.4% to $4.1 billion in 2021. Cloud system infrastructure services (IaaS) is likely to see the highest growth at 44.6%.
However, while there is certainly an upside that favours cloud adoption beyond doubt there is also a flip side to it. No doubt the pandemic gave a sudden boost to cloud (especially public cloud) adoption in India like any other country in the world, however there are still many apprehensions like lack of resources/skills, security, cloud management, compliance, and finally the performance. These issues are non-negotiable and can act as big deterrents in cloud adoption.
Amazon Web Services (AWS Cloud) is the largest public cloud services provider. According to the Gartner’s Magic Quadrant for Cloud Infra and Platform Services issues released in Aug 2020, AWS is way ahead than its competitors including Microsoft Azure and Google Cloud.
During the recently concluded 3-week long annual AWS re:Invent event, it launched a plethora of new solutions and also in extensions of its previous ones, it also announced expansion of its services to include a second infrastructure region in India by mid-2022. The new AWS Asia Region, which will consist of three Availability Zones at launch, will join the existing nine AWS Regions and 26 Availability Zones across Asia.
DynamicCIO spoke to Ashish Dhawan Managing Director – Enterprise, Mid-market & Global Business, South Asia at Amazon Web Services (AWS) on a variety of issues including company’s commitment to growing and serving a large number of Indian customers. Here’re the excerpts of the interview in the video.