Analysts have reported that Cloud-based businesses of IT services providers may take longer to show growth and profitability than originally expected. While there is no argument on the evolution of the cloud as technology, reports say that the acceleration of cloud services and IT firms that are driven by the COVID-19 outbreak is unsure for now.
The cloud “scaled up” during Covid-19 and “scaled-down” consequently said industry consultant Gartner last month in a handout. He also added that he relatively expects “accelerated penetration” of cloud technology throughout the year 2022 than this year. Cloud-related returns for companies such as Infosys and TCS also expect to grow gradually by the financial year 2022 rather than in the second half of the current year.
Large-scale cloud service providers like Amazon Web Services (AWS) have demoted cloud business prospects to a “mixed bag” position and for the last nine months, no cloud provider has reported a growth burst. This means it may take longer to bag cloud-based huge deals for IT firms, which are cloud partners of these companies. AWS and Microsoft ICS reported post-COVID incremental sales results were weak. These results will affect the buildup about the cloud is the backbone for the business throughout the lockdown period.
There is no doubt that cloud technology has successfully captured the market for the development of new applications and platforms. Yet, cloud providers are trying to strike the larger opportunity. This includes clients looking to convert their inheritance of IT infrastructure to cloud services. For this, they need the help of Indian IT service firms, despite the fact that this would be a prolonged process. This conversion is a much more complicated thing to achieve as it is well deep-rooted and both expensive as well as risky.
Presently, more than 20% of the IT workloads are on the cloud and this is forecasted to rise by 80% in the coming say, five years. It has become an ultimate priority to make enterprises flexible and proficient to work virtually which will take some time. The companies will have to put together savings from their operations to invest in the cloud as the IT budgets are not rising. Large IT service providers have been doubling-up their cloud strategy and it is expected to be a gradual four to five-year process.
