A recent EY study reveals that 90% of Indian organisations believe their AI initiatives hinge on successful cloud migration, reflecting a transformative shift in the digital landscape.
Indian enterprises are increasingly integrating cloud technologies as a pivotal stepping stone for Artificial Intelligence (AI) adoption, as highlighted in the recent findings of EY’s Global Cloud Implementation Study. The report delineates that a significant 90% of organisations believe that their AI initiatives would not have been feasible without prior cloud migration. Furthermore, all respondents expressed confidence in demonstrating favourable return on investment (ROI) from cloud solutions to their C-suite executives, thereby illuminating the essential role of cloud infrastructure in advancing India’s digital economy.
Currently, 67% of companies in India are engaged in transitioning their applications to the cloud. This migration underscores the country’s dedication to innovation and operational efficiency. The trend indicates a preference for hybrid cloud strategies among Indian businesses, with 80% managing their enterprise applications with a combination of cloud and on-premises solutions. This balanced approach allows firms to maintain flexibility while steadily progressing towards complete cloud integration.
Discussing the transformative impact of this shift, Abhinav Johri, Technology Consulting Partner at EY India, stated, “The rapid adoption of cloud technology in India is more than just a technological upgrade – it’s a transformational shift that empowers businesses to reimagine their operating model, products or services. By leveraging cloud to enable AI capabilities, companies can now respond faster to evolving client needs and market changes and deliver enhanced value through AI-led solutions. This marks a new wave of progress, which may potentially position India as a global leader.”
The incorporation of AI and Machine Learning (ML) into business operations is increasingly being recognised as a significant advantage; 37% of Indian companies noted these technologies as essential drivers of product and service innovation post-cloud migration. The capacity for enhanced innovation stands out as a primary benefit of cloud-native development, with 37% of organisations citing it as the principal advantage of developing in the cloud as opposed to traditional on-premises methodologies. Other noted benefits include improved monitoring of carbon emissions, identified by 29% of respondents.
Despite the advantages, Indian enterprises encounter distinct challenges associated with cloud transformation. The study reveals that only 25% of companies in India perceive skills and capability gaps as a major impediment to the development of cloud-native applications, a notably lower figure compared to the global average of 38%. Instead, hurdles such as cybersecurity concerns (24%) and budget limitations (29%) take precedence as the primary challenges faced by organisations in their cloud journey.
Overall, the findings from EY’s study paint a comprehensive picture of the current landscape of cloud adoption in India, highlighting how cloud technologies underpin the growing embrace of AI, whilst also bringing to light the challenges that businesses navigate in this evolving digital sphere.
Source: Noah Wire Services
- https://www.ey.com/en_in/newsroom/2023/08/cloud-and-data-to-be-the-cornerstone-for-the-successful-gen-ai-ey-ficci-report-india-s-cloud-and-data-revolution-from-adoption-to-enabling-innovation – This article supports the claim that cloud adoption is crucial for AI initiatives in India, highlighting that 80% of Indian organizations are adopting the cloud to enable various business capabilities including Gen AI.
- https://assets.ey.com/content/dam/ey-sites/ey-com/en_in/news/2022/02/ey-cloud-as-a-catalyst-for-business-transformation-2022-trends-report_v1.pdf – This report corroborates the trend of cloud migration in India, noting that 67% of companies are transitioning their applications to the cloud and preferring hybrid cloud strategies.
- https://assets.ey.com/content/dam/ey-sites/ey-com/en_in/news/2022/02/ey-cloud-as-a-catalyst-for-business-transformation-2022-trends-report_v1.pdf – The report highlights that 80% of enterprises manage their applications with a combination of cloud and on-premises solutions, supporting the preference for hybrid cloud strategies.
- https://www.ey.com/en_in/newsroom/2023/08/cloud-and-data-to-be-the-cornerstone-for-the-successful-gen-ai-ey-ficci-report-india-s-cloud-and-data-revolution-from-adoption-to-enabling-innovation – Abhinav Johri’s statement in this article underscores the transformative impact of cloud adoption on Indian businesses, enabling them to reimagine their operating models and deliver AI-led solutions.
- https://assets.ey.com/content/dam/ey-sites/ey-com/en_in/news/2022/02/ey-cloud-as-a-catalyst-for-business-transformation-2022-trends-report_v1.pdf – The report mentions that 37% of Indian companies recognize AI and ML as essential drivers of product and service innovation post-cloud migration, aligning with the benefits of cloud-native development.
- https://assets.ey.com/content/dam/ey-sites/ey-com/en_in/news/2022/02/ey-cloud-as-a-catalyst-for-business-transformation-2022-trends-report_v1.pdf – The report notes that 37% of organisations cite enhanced innovation as the principal advantage of developing in the cloud, compared to traditional on-premises methodologies.
- https://assets.ey.com/content/dam/ey-sites/ey-com/en_in/news/2022/02/ey-cloud-as-a-catalyst-for-business-transformation-2022-trends-report_v1.pdf – The study reveals that 29% of respondents identify improved monitoring of carbon emissions as one of the benefits of cloud adoption.
- https://assets.ey.com/content/dam/ey-sites/ey-com/en_in/news/2022/02/ey-cloud-as-a-catalyst-for-business-transformation-2022-trends-report_v1.pdf – The report indicates that only 25% of companies in India perceive skills and capability gaps as a major impediment to cloud-native application development, which is lower than the global average.
- https://assets.ey.com/content/dam/ey-sites/ey-com/en_in/news/2022/02/ey-cloud-as-a-catalyst-for-business-transformation-2022-trends-report_v1.pdf – The study highlights that cybersecurity concerns (24%) and budget limitations (29%) are the primary challenges faced by organisations in their cloud journey.
- https://www.ey.com/en_in/newsroom/2023/08/cloud-and-data-to-be-the-cornerstone-for-the-successful-gen-ai-ey-ficci-report-india-s-cloud-and-data-revolution-from-adoption-to-enabling-innovation – This article emphasizes the comprehensive picture of cloud adoption in India, underlining how cloud technologies support the growing embrace of AI and the challenges associated with this transformation.
