Digital transformation as a driver of industry evolution has now reached every industry, according to an IDC whitepaper (available at the bottom of this article). Cloud technology is crucial in implementing digital transformation, but the extent to which the cloud is employed should vary based on the digital maturity of the transforming company.
Digital transformation refers to the integration of digital technology into all areas of a business in order to create new value by significantly altering business practices both technologically and culturally in order to meet new market or consumer demands.
Cloud technology is typically a key driver of digital transformation, increasing agility and flexibility so that organisations can respond to evolving market demands. By fuelling the growth of ecosystems, the cloud brings about increased collaboration between partners, and even between competitors. Though important, the cloud as a digital transformation enabler should be deployed at a level appropriate to the organisation’s digital maturity, which may mean retaining some on-premise solutions.
There are, therefore, a range of transformative cloud strategies in use across industry, depending on the organisations’ existing cloud capabilities:
- Leading-edge cloud users, with high digital maturity, are aiming for a cloud-only strategy, which involves closing their own datacentres and transferring all moveable applications to the cloud.
- Mid-range cloud users, following closely behind, are adopting a cloud-first strategy in which the cloud or even SaaS (software-as-a-service) are prioritised rather than exhaustively deployed.
- Best-fit cloud users, are adopting a combination of on-premise and cloud-based IT based on performance characteristics, regulatory and compliance requirements, and security posture.
The next wave of cloud adoption, according to IDC, will focus on moving ‘core enterprise workloads’ such as CAD and PLM from on-premise to cloud-based platforms. Installed on a cloud-platform, these software packages will be available not only to large organisations but also to smaller teams, organisations and start-ups.
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Download the Full IDC Whitepaper
There’s more where that came from. If you’d like to read more about Digital Transformation Built on the Cloud or follow any of these statistics to their source, you can download the full whitepaper below.