Wearing cloud (opens in a new tab) Revenue-driven computing is arguably the biggest opportunity businesses have ever had, as the cloud proved to be the most significant technological shift in computing history. Initially adopted for, organizations are now looking to make a strategic shift to take full advantage of what the cloud has to offer.
According to SG Analytics, 94% of companies already use some type of cloud service. In fact, this will only increase, as Gartner forecast that since last year, end-user spending on public cloud services will have increased by more than 20 percent, to reach $482 billion by the end of 2022.
To capitalize on this, it is essential that companies approach their cloud adoption journey (and the associated investment) with a long-term view in mind. Only then can organizations be confident that their cloud investments will propel them toward their business goals. When done right, the cloud will not simply be a cost-saving opportunity, but also a core driver for innovation and higher return on investment (ROI).
Cloud revenue generation
By enabling digital innovation and providing actionable insights that help keep costs down, the cloud has become an almost guaranteed money saver. However, there are problems that prevent organizations from maximizing their savings. For example, vendor lock-in can prevent companies from achieving the best possible price-performance ratio. Although the lack of control over data (opens in a new tab) or infrastructure means that organizations must invest more to meet their specific architecture requirements. Another major issue is waste: many organizations end up over-investing in cloud packages and only use a small portion of the services.
Even after addressing these issues, organizations that focus solely on cutting costs will eventually reach the point of no return. They will simply reach a point where it is almost impossible to make any further savings and returns will decline.
To ensure both efficiency and profit, companies should take a change of perspective. They should see the cloud as a money maker, rather than a way to save money. For example, by ensuring that all plans are informed by operational insights, new services can be developed that generate additional revenue and deliver operational efficiencies.
Whether it’s significant improvements in the end-user experience or increased innovation, it will be the companies that change their perspective that will see the benefits. For example, employing a 360 degree view of customers (opens in a new tab)It will be possible for organizations to improve business models and develop new crossover points for omnichannel services.
Roll the ball
The first step organizations need to take is to map out their revenue goals and examine how technology can better enable them. So, it’s time to get creative. The flexibility offered by the cloud means that anything is possible, with nearly endless opportunities for continuous innovation and service delivery. For example, the cloud could be used to offer easier access to products through a digital marketplace, allowing end users to easily select their choice. request (opens in a new tab). Or, with the cloud, product development can be accelerated, reducing time to market.
By reframing the cloud as an innovation engine, the world suddenly opens up. This mindset will prove critical to business success and can be taken further by examining how the cloud interacts with emerging applications such as edge computing, unlocking a whole range of new possibilities.
harness the potential
With McKinsey estimating that $1 trillion of cloud revenue will be available by 2030, companies that have embraced this new approach will be in the best possible place to reap the benefits.
For example, telecommunications company BT harnessed the capabilities of the cloud to rapidly reduce time-to-market for new products, meet performance demands, and transform its interactions with customers. This accelerated BT’s sales cycle, with more content and services being delivered faster to more customers, which in turn provided a much better Customer experience (opens in a new tab). The cloud also ensured low latency and high throughput so that spikes in viewer demand could be supported at all times. Other benefits provided by the cloud include that BT’s system can handle a larger number of transactions, ensuring personalized service and streaming between devices.
Is the future in the cloud
The popularity of the cloud will continue to grow and, if used in the right way, will propel companies towards digital and business success. Companies can unlock new innovations and revenue streams by making the cloud a core focus and treating it as a money-making opportunity. It is with this strategic mindset that organizations can gain a competitive advantage, with greater agility and a positive future in the cloud.