TCS: "The cloud is now an essential business strategy, not just a computing solution"

Tata Consultancy Services Press Release

Tata Consultancy Services (TCS) (BSE: 532540, NSE: TCS) reveals today's top five cloud trends: cloud 2.0, public cloud, 5G and edge computing, industrial cloud, and the emerging cloud talent gap. The predictions are part of TCS's recommendations for which cloud innovations are most likely to influence executive management and how companies can effectively and profitably manage these trends while avoiding any potential roadblocks.

The TCS findings come at a time when cloud adoption continues to rise, as Gartner forecasts that global cloud services will grow more than 20% to $591.8 billion by 2023, despite that inflation and economic uncertainty put pressure on business spending. The rapid pace of transformation has left many business leaders concerned and uncertain about their technology investments, but this new era calls for better strategic planning and long-term vision, according to Parthiv Shah, Global Head of Strategy and Cloud Transformation:

"With more than 616,000 employees operating in the cloud, and almost all of our customers using these services with TCS, what comes next in this area is the most important thing for the company," says Parthiv. "Technological advances expand and converge every day, so investing in the right cloud infrastructure is one of the most important decisions any company will make in 2023. Business leaders must understand that the cloud is now a business strategy essential, not just an IT solution."

Here are the five essential trends that companies need to consider to succeed in the cloud:

CLOUD 2.0

The cloud will enter a new phase becoming a fundamental pillar of business strategy.

Many initial investments in the cloud were made hastily during the onset of the pandemic to cater for remote work or with a short-sighted goal of cost savings. Now, the global economy is forcing companies to assess the true value of their cloud strategies through the use of metrics, and companies are beginning to shift focus to fine-tuning their cloud value assessment models and asking how they can support customers or diversify sources of income. This new perspective positions the cloud as a fundamental pillar of modern business strategy, crucial to driving growth, transformation and continuous innovation.

SOVEREIGN CLOUD

New data privacy policies will push companies towards the sovereign cloud.

The sovereign cloud is a security posture that any organization can adopt to safeguard valuable data and systems from unauthorized foreign access at the national or local level. The United Nations National Conference on Trade and Development reports that more than 70% of the world's countries have passed data and privacy laws that are driving organizations to add sovereign cloud to their multi-cloud, hybrid and poly-cloud to comply with regulations. This will make smart system integrations, interoperability and portability more complex but imperative in 2023 and beyond.

INNOVATION IN THE CLOUD

By moving compute and storage closer to data sources, enterprises can improve response times and save bandwidth, while advances in the edge cloud are poised to multiply applications on the enterprise's front lines, including operations in stores and premises and sustainability solutions. Although still in the early stages of development, quantum computing is getting closer to reality, and more and more companies are preparing to adopt its capabilities. Spectacular advances in artificial intelligence, machine learning, virtual reality and augmented reality for a possible immersion into the metaverse are also expected to reinforce the role of the cloud in modern business and everyday life.

INDUSTRIAL CLOUD

Companies will start reaping the rewards of their cloud investments for specific industries.

Cloud computing can be uniquely tailored to specific industries to deliver business value, not just more efficient back-end IT operations. From rapidly evolving supply chains to energy-efficient sustainability initiatives, savvy companies that invest in cloud-native industry solutions to address common problems can expect a significant boost in their key performance indicators. Consumer-facing sectors such as retail and hospitality will also see industrial cloud activity grow as they are best positioned to make immediate use of edge computing. We expect cloud success stories to flourish in specific sectors starting this year.

CHANGING TALENT

The talent gap will grow as cloud technologies evolve and demand new digital skills.

The cloud is creating new opportunities for businesses and employees, but the challenge is to train staff to become multi-cloud architects. This will require a global collective effort by businesses, governments, academia and industry bodies to equip employees with the training and tools they need to thrive in the new era of cloud innovation. We anticipate a race for top talent that contrasts with the more general pressures on rosters due to the economic downturn. Companies must redouble their efforts to train, retrain and retain their staff if they want to realize their vision of a cloud-powered business as soon as possible.

Parthiv adds: "Cloud spending will continue to come under scrutiny due to global economic headwinds. But we believe it will endure and indeed increase, particularly in the medium to long term," says Parthiv. "New technologies and collaborations are driving innovation and will continue to deliver precisely the kinds of cloud-based services that are becoming vital to global business. Companies that proactively develop cloud-first strategies to address and master these new trends will be much better positioned to earn a healthy return on their investments in 2023."

TCS works closely with all of the major public cloud hyperscalers to provide its customer base with best-in-class digital solutions and services, and the company continues to support large-scale and industry-specific cloud transformation projects on a global scale. . For more information, visit: https://www.tcs.com/what-we-do/services/cloud.

   

About Tata Consultancy Services (TCS)

Tata Consultancy Services is an IT services, consulting and business solutions organization that has served many of the world's leading companies over the past 55 years. Its consulting and knowledge-based portfolio of business, technology and engineering services and solutions is delivered through its unique Location Independent Agile™ delivery model, recognized as a benchmark of excellence in software development.

Part of the Tata group, India's largest multinational business group, TCS has more than 614,000 of the world's best-trained consultants in 55 countries. The company generated consolidated revenue of $27.9 billion for the fiscal year ending March 31, 2023, and is listed on the BSE and NSE of India. TCS's proactive stance on climate change and its award-winning work with communities around the world have earned it inclusion in leading sustainability indices, including the MSCI Global Sustainability Index and the FTSE4Good Emerging Index.

For more information, visit www.tcs.com

This press release was published in English using an automatic translation system.