The benefits of cloud computing are clear in today’s increasingly mobile-driven market. But are certain industries more cloud-friendly than others?
This is the question TechCrunch—a leading media authority on business startups and tech trends—sought to answer in a recent analysis of cloud adoption by industry.
Two industries clearly stand apart from the pack in terms of cloud suitability: healthcare and education. Cloud solutions are fast gaining traction in the multi-faceted and strongly-regulated healthcare industry—mainly due to the fact that the Cloud helps these companies stay compliant. Meanwhile, universities and schools are also leading cloud adoption by showing a readiness to try out new cloud solutions, specifically applications that target mobile workers and leveraging big data.
The second tier of cloud users include the retail, utilities, transportation, real estate, construction and insurance industries—all of which face some obstacles to complete cloud migration, but who currently engage in various elements of cloud computing and show promise of expanding Cloud integration in the near future.
The lowest tier, or companies who are likely to be the slowest at adopting cloud computing, are the government and banking sectors. While the enormous IT expenditure of these industries makes them ideal candidates for the Cloud, it may still take several years for them to resolve privacy concerns and the costs of migration.
8 Factors That Impact Cloud Adoption Speed
According to extensive research on the growth metrics gathered from hundreds of private-industry cloud companies, eight characteristics of a cloud-friendly industry are:
- Dynamic regulatory environment – industries forced to roll out company-wide changes swiftly in order to stay compliant with strict regulations.
- Dissatisfaction with existing software – companies with users who must become accustomed to software that changes their workflow process to fit into a “one size fits all” system, as opposed to a cloud-based vertical system that is designed specifically for them.
- High industry concentration – concentrated industries, particularly when 50 companies or less make over 80% of industry revenue, in need of improved sales and marketing efficiency.
- Mobile workforce – industries with a high-percentage of non-desk workers who need cloud applications that can be accessed on smartphones, tablets and other mobile devices (even Google Glass).
- Data access – industries that rely on “big data” to make decisions on sourcing, staffing and pricing; can be greatly benefited by cloud architectures that allow them to sift through large volumes of datasets at a time.
- SaaS platform alignment – new or outdated companies who want to leverage existing platforms to speed up cloud integration and trim down development time.
- Cyclical immunity – industries with little or no link to seasonal or annual market patterns that make SaaS and funding an initial IT investment more difficult; tend to be the strongest candidates for cloud computing.
- Visually dependent – industries that rely heavily on visual representation—such as real estate, manufacturing, and retail.
Even though adopting the Cloud is advantageous for certain industries, these companies must address two main areas of concern—namely privacy issues and migration costs.
Cloud computing consultants at Innovative Architects can help you address these issues and others while they guide you through the process of successfully migrating your business to a cloud platform.