Cloud Computing to Lead Digital Transformation
Published on : Tuesday 07-04-2020
According to a recent report, the Digital Transformation market is worth US$ 665.0 billion by 2023.
Digital transformation is vital for all businesses to remain competitive as the world becomes increasingly digital. Digital transformation is the process of using digital technologies to change processes, models, business, and organisational activities to further improve the performance of businesses. With increasing awareness about the benefits of digitisation, organisations across several industry verticals are adopting digital transformation technologies to expand and sustain their existing positions in a highly competitive market. According to a recent research report, ‘Digital Transformation Market by Technology (Cloud Computing, Big Data & Analytics, Mobility/Social Media, Cybersecurity, Artificial Intelligence), Deployment type, Business Function, Vertical (Retail, Education), and Region – Global Forecast to 2023’, published by MarketsandMarkets, the global digital transformation market size is expected to grow from USD 290.0 billion in 2018 to USD 665.0 billion by 2023, at a CAGR of 18.1% during the forecast period. Digitalising organisational business functions to serve changing customer preferences and enhance operational efficiency, the rapid proliferation of mobile devices and apps, increasing penetration of IoT and adoption of cloud services, and need to improve operational performance to gain competitive benefits in the market are some of the major drivers of this
market.
Leading by technology
By technology, the cloud computing segment is expected to lead the digital transformation market during the forecast period. The cloud computing technology is cost-efficient, as this solution can be deployed even with a basic on-premises IT infrastructure. In cases where a company’s data centres are insufficient to handle all its IT requirements, cloud services can enhance its IT capabilities without the need for large investments for new data centres.
Highest growth
By deployment type, the cloud segment is expected to grow at the highest rate during the forecast period. The deployment of digital transformation solutions on the cloud enables users to access solutions from their desktops or any mobile devices. Key advantages of this deployment type include easy deployment, low deployment cost, and easy upgradeability and accessibility. Furthermore, it helps to reduce IT budgets and financial risks, while increasing flexibility. Therefore, small organisations and individual users generally prefer cloud digital transformation solutions.
The leading region
Based on region, North America is expected to lead the digital transformation market during the forecast period. Organisations in this region were early adopters of digital transformation. The region has sustainable and well-established economies, which invest increasingly in R&D activities for the development of new technologies. Along with large enterprises, the adoption of digital transformation by small and medium enterprises has also contributed to the growth of the market in North America.
Major vendors covered in the digital transformation market include:
Accenture
Accenture is an Irish-domiciled multinational professional services company that provides services in strategy, consulting, digital, technology and operations. Enterprises will need to look beyond the much-in-vogue idea of “digital transformation” if they want to maintain a competitive advantage and differentiate themselves from their competitors, according to a new report from information technology consultancy Accenture Plc. Accenture says that digital transformation is essentially done or at least a universal discipline and that enterprises are now reaching a turning point. The company provides a powerful range of capabilities that can be tailored to most complex business needs.
Google is an American multinational technology company that specialises in Internet-related services and products, which include online advertising technologies, search engine, cloud computing, software, and hardware. Google believes there’s no set playbook for transformation, so build your own. Google’s Cloud is helping thousands of organisations, including many of the world’s largest companies, transform themselves. Worldwide, out of the 10 largest companies in each industry, nine media companies, seven retailers, six energy and utility companies, and five of the top 10 banks, telecommunications companies, manufacturers, and software companies are using Google Cloud as part of their business transformation.
IBM Corporation
International Business Machines Corporation (IBM) is an American multinational technology company headquartered in Armonk, New York, with operations in over 170 countries. IBM engages deeply with customers, and fuels agility, efficiency, and new revenue streams with insight. Digital Strategy and iX consulting services from the company help users meet the challenges of the digital age with new business models, new expertise, and new ways to work. These elements of digital transformation rely on analytics and cognitive insights, building responsive operations and developing an innovative culture. IBM’s AI platform Watson helps predict and shape future outcomes, automate complex processes, and optimise employees’ time.
Microsoft Corporation
Microsoft Corporation is an American multinational technology company with headquarters in Redmond, Washington. It develops, manufactures, licenses, supports, and sells computer software, consumer electronics, personal computers, and related services. Digital business transformation, undertaken thoughtfully, brings with it profound gains: deeper customer engagement, optimised operations, more empowered teams, and differentiated, predictive offerings. Every industry and institution must evolve their business and technology landscape to address new competitive forces and create new value; Microsoft is no different. The Core Services Engineering and Operations organisation is deeply invested in helping the company transition to digital-first.
SAP
SAP (abbreviation of ‘Systems, Applications & Products in Data Processing’) is a European multinational software corporation that makes enterprise software to manage business operations and customer relations. The company is especially known for its ERP software. Digital transformation is a fundamental rethinking of customer experience, business models, and operations. It's about finding new ways to deliver value, generate revenue, and improve efficiency – and companies are using innovative technologies to do it. SAP with its Leonardo platform helps users enhance processes and drive end-to-end business transformation, using the latest technologies – like the IoT, AI, and machine learning – on an open, extensible platform.
Other leading players in this domain are: Adobe Systems (US); CA Technologies (US); Cognizant (US); Dell EMC (US); Equinix (US); HCL Technologies (India); Hewlett Packard Enterprise (US); Marlabs (US); Oracle Corporation (US); and TIBCO Software (US), among others.