Cloud and data are the cornerstone of Gen AI’s success

Cloud and data are the cornerstone of Gen AI’s success: EY-FICCI Report

The EY-FICCI survey shows that nearly two out of every five organizations have opted for a hybrid approach. This trend is gaining popularity as it offers scalability and security.


In brief

  • 78% of organizations actively adopt cloud strategies to modernize tech stacks and infuse intelligence into their apps. Neglecting cloud adoption may hinder harnessing advanced tech advantages like Gen AI.
  • Escalating cloud costs are a concern. Larger firms optimize costs by only 20% with cloud usage, while smaller ones struggle to reach savings targets.
  • 75% of organizations grapple with talent deficit, which is hindering cloud journeys. Swift tech releases surpass workforce readiness for efficient, sustainable implementation.

Large-scale cloud adoption has accelerated India's innovation drive, with organizations making substantial investments in their cloud infrastructure to maintain this momentum. The EY-FICCI cloud report, titled "India's Cloud and Data Revolution: From Adoption to Enabling Innovation," showcases the ways in which Indian enterprises across industries are actively expanding their cloud technology initiatives. In the current stage of cloud adoption, enterprises have gone beyond simply migrating to cloud to harnessing the technology’s capabilities to enhance innovation, customer experiences, and unlock new revenue streams.

With 80% of Indian organizations adopting the cloud to enable a range of business capabilities such as intelligent applications with Gen AI, native functional and data products, and highly intuitive orchestration platforms the imperative is clear: embrace the cloud not merely as a tool, but as an enabler of transformative change

Cloud computing, especially public cloud, is the foundational framework propelling enterprises into the future. In India, just a few years ago, public cloud adoption was, at most, hesitant. The primary aim of transitioning to the cloud was cost reduction, with companies striving to curtail infrastructure expenses. However, there were data privacy concerns and regulations remained ambiguous. While digital natives fully embraced this paradigm, larger enterprises were cautious.

India as a hub of cloud-first services

India is evolving into a hub for cloud-first companies, with major cloud regions located in Mumbai, Chennai, Hyderabad, and Pune. Indian GCCs (Global Capability Centers) have become cloud engineering hubs for global companies even as the country becomes a potentially significant market for cloud service providers (CSPs). CSPs too have rapidly established new cloud regions in India as they search for growth, expanding the array of cloud-native services available to Indian and global enterprises.

Gen AI’s success to be driven by cloud and data

 

The success of emerging technologies including Gen AI is intricately linked to cloud computing as they rely on large datasets and robust computing infrastructure, which are inherent features of cloud technology. As Gen AI adoption grows, so will data utilization and consumption of cloud resources. Leveraging cloud for Gen AI offers advantages like scalability, access to pre-trained models, and seamless integration into existing applications.

 

Organizations that fail to adopt cloud computing may struggle to fully utilize Gen AI due to resource limitations, data access constraints, integration issues, and slower innovation. However, to derive maximum benefits it is critical to establish a robust framework for responsible use of Gen AI, addressing concerns like data leakage and biased output. Striking the delicate balance between universal guidelines and sector-specific nuances is essential.

Data and analytics capabilities are significant enablers for approximately 84% of larger enterprises to adopt the cloud.

Other key cloud trends observed

  • Enterprises are leveraging cloud to launch new products.
  • Indian enterprises are at a tipping point to become cloud-native with their architecture and cloud native talent base.
  • Demand for cloud talent will intensify as organizations modernize their data and applications.
  • India has a very fertile cloud talent base.
  • As organizations are maturing, they are opting for industry cloud, domain cloud, sustainability cloud and distributed cloud.

A future imperative for business transformation

In the coming years, cloud computing will emerge as the default choice for new application development and data analytics workloads. Traditional non-cloud-adapted workloads will diminish. Embracing the cloud will become a fundamental business decision, backed by accelerated adoption and migration strategies.

However, it is important to rethink the talent landscape. Future enterprises must adapt their workforce to effectively manage cloud services and explore new opportunities.

Forward-thinking organizations will establish centers of excellence dedicated to transforming their operations through cloud and digital technologies, fully realizing their transformative potential. A deep understanding of business imperatives is essential for effective adoption and governance.

By seizing this opportunity and embracing cloud, Indian industry can unlock its vast potential, drive innovation, create new revenue streams, gain a competitive edge, and enhance the experience for all stakeholders.

Download the full pdf

Summary 

At the core of all services lies the cloud, which has revolutionized the way services are offered by both the government and enterprises. The next generation of cloud is evolving, powered by innovations developed in India in response to consumer needs.

About this article

Authors

Related articles

How DeepTech will shape the future of Indian B2B SaaS

Discover how B2B SaaS firms use DeepTech to transform use-cases, delivering client value. Explore about Deeptech market size in India

How responsible adoption of Generative AI can transform legal functions

EY highlights how Generative AI can revolutionize legal functions, but the ethical and regulatory risks must be evaluated before implementation.

How Generative AI can build an organization’s ESG roadmap

EY highlights how Gen AI offers transformative opportunities for organizations in their sustainability journey. Learn more about role of AI in ESG.