While the financial turmoil of 2008 drove markets all over the world into a panicked frenzy, the IT industry has managed to weather the changes better than others. That said, the industry is now in a self-assessment mode.
The market crisis of 2008/09 has led IT companies to take an introspective look their customers' IT spend. Enterprises are evaluating whether or not they are realizing the full potential of IT. Pertinent question still remains whether there is a tangible connection between IT expenditure and moving the needle on important business parameters? Clearly, Cloud Computing will be among the emerging technologies including Enterprise Mobility and Performance Management Analytics that are expected to achieve this end.
The key drivers for cloud's accelerated adoption is the fact that it allows organizations to remain focused on core competencies while it takes on the repeatable work at a variablized cost points depending on usage. Cloud also facilitates the transformation of a fixed IT budget to a variabilized one and ensuring that the expenditure is reflected in the subsequent returns. In many ways, Cloud will revolutionalize the way IT will be consumed going forward.
As of now cloud forms a part of organizations' IT innovation budget. IT service providers are hastening to attract customer's discretionary spending by taking a consultative and proactive approach. They are also tapping in to customer needs for low cost innovations. It can now, with some degree of confidence, be said that to understand the potential of cloud is to find that elusive link between revenue growth and IT expenditure.
Analysts believe that sooner rather than later, cloud adoption is going to become main stream if not the norm. To read more on the influence of cloud on the Indian IT services industry read this paper