In the case of the retail chain or a bank, cloud is a no-brainer. Both see seasonal spikes in IT usage as both have a number of events that change the volume of transactions in very short time frames. In retail it could be events such as Christmas shopping and in banking it could be tax filing, to name just two. The Oil & Gas (O&G) industry, by comparison, has no such variance. Therefore, it doesn’t have adequate reasons to adopt cloud, except to reduce costs. Or does it?
I think it has more than one reason to adopt cloud effectively. And that reason has nothing to do with unpredictable spikes in transaction volumes requiring elastic cloud infrastructure. The reason is even more compelling than cost management and customer demand – it has to do with a barely visible trend in the industry and one which you need to take note of. Major technology providers like Oracle, IBM, SAP, IFS and other more varied service providers for content, analytics, mathematical simulation, monitoring systems, IoT solutions, trading and logistics, may not have any on-premise products to offer in the next 3 to 4 years. The O&G business needs to be ready for this eventuality, and prepare for future changes
The equation is changing more sharply than we imagine. Take the case of the new technology companies that are being born in cloud. These are the companies developing cutting edge and game changing solutions. To be able to leverage their solutions, O&G organizations need to be cloud-focused.
There are three important aspects we need to consider:
- O&G organizations will soon be left with IT estates that will have no support.
- O&G organizations that don’t move to cloud will not be able to leverage digital technologies such as SaaS.
- Other industries that partner O&G will have moved on to solving problems using a digital+cloud mix, leaving a fractured relationship with O&G that is still non-cloud.
Cost, as the prime drive of cloud adoption in O&G industry, is not an argument any more. The very acts of sustainability and business survival are more crucial and to be focused on.