From grocery store clerks to physicians and nurses, COVID-19 made us keenly aware of the people on the front lines ensuring life would go on, and that we were kept safe.
According to a series of new studies, businesses of all sizes are starting to look at the cloud as a new kind of essential service. With the shift to remote work and digital operations, innovation in the cloud has never been so critical.
Cloud Adoption was Already Speeding Up Before COVID-19
Numerous studies conducted just before the COVID-19 outbreak showed businesses were already expanding their journey to the cloud. A Softchoice survey of North American leaders found 66% of businesses intended to go “cloud-first” on all new workloads.
We also found that 37% of businesses were starting to look to cloud as an innovation engine, that is using cloud infrastructure to build new applications and services or unlock new insights from their data. At the same time, O’Reilly’s Cloud Adoption in 2020 study said almost half of all businesses planned to move 75% or more of their applications to the cloud by 2021.
Along came the devastating global pandemic. Instead of seeing massive cuts to cloud budgets and initiatives, however, we saw IT leaders move to the cloud faster than before.
In one poll, 40% of respondents said COVID-19 was accelerating their move to the cloud. Meanwhile, 76% said the pandemic had led them to increase their spending on private and public cloud infrastructure services, including Amazon Web Services (AWS), Microsoft Azure and Google Cloud.
Why Cloud Innovation is Accelerating
All of this makes perfect sense when you consider what businesses are facing — and how the cloud can help them overcome it. Stay at home orders, social distancing and a radical shift in consumer behavior has forced businesses to rethink workplace experiences and go-to-market strategies almost overnight.
“What you are going to see is an acceleration of more people going 100% to the cloud,” said Mary Treseler, O’Reilly’s vice president of content strategy in an interview with Tech Republic.
As businesses get back to (relative) normal, business and IT leaders are looking to the future with some uncertainty. They do not want to be caught off guard again, and they are looking to the cloud to shore up remote work and other business continuity capabilities.
Don’t Take Our Word for It
This pandemic-prompted innovation meshes with what we’ve learned through this year’s virtual Innovation Executive Forums. Two stories stand out from our recent event with senior IT leaders in Central Canada, showing just how fast innovation happening now.
After COVID-19 shut down operations, an IEF member in the food retail industry worked with legal and finance teams to create a new curbside pickup and eCommerce application. The new app took just three weeks to launch.
Another IEF member in the travel industry said his business lost almost 95% of its revenues in April and May. In response, the IT leader helped the business lay the groundwork to deliver more tailored, end-to-end travel experiences. He says IT has had to shift priorities and shorten delivery timelines to help the business survive.
In both of these stories, IT was forced to act quickly to keep the business alive and thriving. In each case, relying on cloud infrastructure, platforms and applications made a rapid response possible.
Speed Bumps Expected
In our cloud adoption research, Softchoice found that security and compliance concerns were among the top hurdles keeping businesses from moving to the cloud. Business leaders also struggled to recruit and retain the specialized talent needed to manage cloud infrastructure and control costs.
Now that the pandemic has accelerated cloud adoption, don’t expect these challenges to disappear. In fact, because speed is now part of the equation, we expect these challenges to become even more important to navigate in the months ahead. To do that, finding the right partner – such as Softchoice – can make all the difference.
For more information on surviving and thriving in the COVID-19 era with cloud innovation, download our research brief, “Cloud: An Innovation Engine.”