Despite current macro headwinds and short-term return on investment concerns, cloud is still a long term investment priority for 70% of major enterprises, revealed a survey by Tata Consultancy Services (TCS).
The survey was of 972 senior executives of enterprises across the globe whose annual revenue exceeds $1 billion. Named ‘Connected Future: How Cloud Drives Business Innovation’, the survey also revealed that 75% of respondents invested in artificial intelligence (AI) and machine learning capabilities over the past two years and 78% plan to do so over the coming 12-24 months.
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AI and machine learning are heavily dependent on access to large amounts of data and scalability through cloud.
“More than a third of respondents (37%) have made progress in their goals for cloud-enabled innovation in the form of new business models, underlining the growing power of the cloud to drive new revenue”, said the study.
Cloud is also playing an important role in driving sustainability across enterprises. The study found that a majority of respondents (about 67%) are using cloud technologies to achieve sustainability goals. However, 43% reported difficulty in understanding the carbon footprints of cloud service providers.
Krishnan Ramanujam, president, enterprise growth group, TCS, said, “A desire for greater efficiency, resilience, and flexibility drove early cloud adoption, and these remain critical factors.” Businesses today fully understand how cloud drives business growth and innovation for the long-term, and for most, the journey is only just getting started, added Ramanujan.
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He said, “Cloud is a frequent source of short-term ROI anxieties, but growth and transformation is a long game. Reconciling these two realities is a challenge and a necessity, but fully achievable with the right strategy and planning.”
This is critical because the cloud is now the unifying digital fabric of every enterprise, fuelling powerful technologies — from generative AI to edge and quantum computing – and is ushering the next wave of innovations now and into the future, added Ramanujan.