Impact of cloud computing in different industries
The global cloud computing industry is predicted increase at a compound annual growth rate (CAGR) of 16.3%, from $ 445.3 billion in 2021 to $ 947.3 billion in 2026, indicating the massive adoption of cloud computing by corporate giants for unicorn start-ups.
Business enterprises are leveraging cloud infrastructure to meet their diverse needs and reinvent business processes to effectively align with current market trends. This phenomenon has accumulated many advantages such as scalability, data analysis and efficiency.
This blog will provide a brief overview of how the cloud has transformed the face of many industries. Read on to find out more!
Impact of cloud computing on different industries
1. Financial services
The cloud is rapidly emerging as an effective solution to meet the ever increasing demands of the financial services industry. Recognizing the benefits of cloud computing, many traditional financial institutions, as well as fintech start-ups, are migrating to the cloud to provide a better user experience, easy scalability, and data management.
An average financial institution has more than 58 percent of its workloads in the cloud. Banking giants such as JP Morgan and Goldman Sachs have migrated to cloud infrastructure in recent years.
One of the main challenges facing financial institutions is the increasing amount of data generated and consumed with billing information, card transactions, stock transactions, insurance, loans and borrowing. The storage and security of this data is always important. Cloud computing offers a cost effective solution to scale a bank’s storage capacity on demand without compromising the integrity of confidential information.
Additionally, cloud infrastructure helps streamline operations and increase efficiency by bringing buyers and sellers together on a common application platform and improving speed and reliability. Studies report a 10-20% reduction in operating costs after migrating to cloud infrastructure. In addition, cloud computing offers higher levels of redundancy than traditional management and backup systems.
Cloud infrastructure fosters an enabling environment for the development of flexible market applications and products over shorter time frames, taking into account dynamic customer needs and market trends.
2. Retail sector
Cloud computing can benefit the retail industry in many dimensions and reform the way it operates from inventory management, data security and improving the customer experience. The adoption of the cloud in retail is stimulate the growth of the global retail industry with a record CAGR of 16.3%!
First of all, inventory can be accessed at your fingertips in the retail industry with the cloud no matter where in the world you are accessing it from. It offers an efficient way to manage the inventory of large retail conglomerates by offering critical insights and data analytics, real-time data and cloud architecture. This allows for better decision making regarding business operations and goods.
Recently, Walmart built one of the largest in-house cloud retail infrastructure ever more than six servers to gain a competitive advantage over e-commerce competitors, maintain customer trust and protect the integrity of customer data.
In addition, innovative retail products can be built efficiently, taking into account customer feedback and preferences. For example, Walmart launched its Cloud-based verification (CPC), which reformed its entire point of sale (PoS) for the global retailer.
Cloud computing can enable the creation of an agile and data-driven supply chain. These are prone to error, and even a small inaccuracy can turn out to be a costly and irrevocable mistake. That’s why cloud computing can enable retailers to manage the entire workflow from a central console thereby connecting all aspects, optimizing inventory management, real-time data capture and monitoring. improving transparency.
3. Health sector
Healthcare has been one of the industries that has long resisted adoption of cloud infrastructure due to security concerns, and it is a tedious process. However, healthcare facilities are generally looking to the cloud, given the dual benefits for patients and physicians in the context of cost, data privacy, and improved patient outcomes.
Specifically, with the advent of the COVID-19 pandemic, the adoption of telehealth and telemedicine has exploded, resulting in increased remote monitoring of patient health parameters and medical devices.
This has given rise to issues with data security and compliance with health regulations such as HIPPA, GDPR, etc. With cloud computing, there is a robust mechanism for protecting health data in these cases of remote consultations. The cloud helps ensure that healthcare providers have access to data storage solutions that appropriately protect sensitive patient information.
The impact of cloud computing in healthcare is significant because it should be worth $ 64.6 billion by 2026. Currently, nearly 83% healthcare industry in the United States uses cloud computing. The increase in implementation is due to low maintenance cost, rapid deployment and limited human resources.
While cloud technology has many advantages, it still has its drawbacks. 93% of cloud services used in healthcare face medium to high risk. Some of the potential threats are selling passwords, cloud hyperconnectors, and undetected insider threats.
4. Education sector
The use of cloud computing in the education sector has led to impressive advances. The value of cloud computing in the education sector is estimated to have reached $ 25.36 billion in 2021. Cloud computing growth in higher education is expected to have a compound annual growth rate of 25.4% by 2027.
Education has become easier to access thanks to cloud computing, especially with the unforeseen pandemic leading to distance learning. Teachers can better plan their lessons and use innovative teaching tools to help students better understand concepts. Students can also collaborate and share notes with their classmates.
Students no longer need to invest and carry several large textbooks to keep track of their materials. With the cloud, all educational materials can be stored as easily accessible digital files as long as there is an internet connection. Group assignments and projects are easier to delegate and track with online tools. This encourages the development of interpersonal skills and improves problem solving.
Massive Open Online Courses (MOOCs) have grown in popularity during the pandemic. From the 1.5 million worldwide registrations in 2012 to the enormous 120 million learners in 2019. The world’s top universities, Harvard, Stanford, and Columbia, all offer MOOCs to people around the world.
As competition in the education industry intensifies, institutes are using more advanced learning tools that are cloud-supported to set themselves apart. With solutions like VMware Cloud make educational institutions more attractive to potential students.
5. Manufacturing sector
According to a survey conducted by the IDC, 66% of the global manufacturing industry uses public cloud services while 68% uses private clouds. In 2017, approximately 25% of inputs used in final production were a form of digital technology, including cloud computing.
“Smart manufacturing” has led to higher productivity rates and improved efficiency. For businesses that lack the capital to invest in an extensive IT infrastructure for their manufacturing business, cloud computing offers a cost effective solution.
Cloud computing is present in multiple areas of manufacturing. From product development to the marketing of the final product, including product management and inventory monitoring. Cloud infrastructure for manufacturing is designed specifically to complement the workforce employed in industry.
Complex marketing campaigns can be used using cloud automation and similar tools. Cloud technology merges product planning and production with the supply chain to provide a comprehensive overview of business operations. Businesses use cloud-based ERP services to track production and inventory levels, as well as sales.
The use of cloud technology is widespread in this industry, and companies that do not use some form of it are immediately at a disadvantage. Indeed, the manufacturing sector has the the biggest investment plan for cloud computing services.
Cloud computing helps industries deal with problems as they arise. A key event that the cloud has enabled industries to cope with has been the various challenges posed by the COVID-19 pandemic such as cybersecurity, autoscaling, quality control and big data.
So, it is clear that cloud computing is here to stay and will enable industries to achieve their business goals in the near future.