IBM: Organizations in India to Spend Nearly Half of their Cloud Budget on Hybrid Over the Next Three years

by | Sep 12, 2020

Multi-cloud, hybrid cloud

Multi-cloud, hybrid cloud

Business executives in India are increasingly planning to invest in hybrid multi-cloud platform strategies and capabilities to drive business transformation and to unlock value, reveals an IBM Institute for Business Value (IBV) survey.  The IBV surveyed Indian and global executives across industries to gain an in-depth understanding of their organizations’ current use of hybrid cloud, multi-cloud and their approach to multi-cloud management for the report titled, ‘The hybrid cloud platform advantage: A guiding star to enterprise transformation in India.’

According to the survey respondents, 17 percent of their IT spend is allocated to cloud at present and they plan to increase the share of spend on hybrid from 42 percent to 49 percent by 2023. The majority of their cloud budgets are being allocated to hybrid cloud platforms even as their public cloud spend is set to reduce from 50 percent share today to 43 percent by 2023. Most industries will exhibit growth in the number of clouds they will deploy, which can go up to 10 clouds particularly in insurance, telecommunications and retail as these industries will continue to expand multiple cloud deployments in the next three years.

Further, the study confirmed the return on investment (ROI) of a platform approach as respondents said that the value derived from a full hybrid, multi-cloud platform technology and operating model at scale is 2.5 times the value derived from a single platform, single cloud vendor approach. In fact, the platform approach is cited as accelerating value with scale.


Key Findings

  • Generating value – The value derived from a full hybrid, multicloud platform technology and operating model at scale is 2.5 times the value derived from a single platform, single cloud vendor approach. In fact, the platform approach accelerates value with scale.
  • More clouds, more vendors – By 2023, Indian organizations expect to be using an average of 10 clouds, however, only 29 percent of businesses have holistic multi-cloud management strategies in place.
  • Cloud and transformation go together – Sixty-four percent of advanced cloud companies globally recognize the need for enterprise transformation and application modernization to go hand-in-hand, 2.6 times higher than India respondents.
  • Control towers – Cloud Management Platforms can serve as IT infrastructure control towers. Thirty-five percent of global IT executives—and thirty-one percent of India IT executives— say they are seeking this type of improved visibility and control of their cloud costs.
  • Public cloud spends to reduce from 50 percent share today to 43 percent by 2023.

Commenting on the survey insights, Viswanath Ramaswamy, Vice President, IBM Cloud and Cognitive Software and Services, IBM India/South Asia said, “The adoption of cloud has been a central feature in developing new, digitally-driven business models. Interestingly, the findings show that hybrid multi-cloud is the fundamental enabler of an organization’s operating model, helping them to embark on a journey to become a Cognitive Enterprise of the future. Further, Hybrid Cloud enables an improved business performance and greater ROI. This is proven in the instance of leading businesses that have successfully achieved demonstrable competitive advantage through robust hybrid cloud management and governance platform.

 In India, leading businesses such as Bharti Airtel and Vodafone Idea are achieving business transformation by leveraging hybrid multi-cloud platform technology and embedding AI.  We are  betting big on Hybrid Cloud which is secure, interoperable, open and free from vendor lock-in.”

The survey was conducted from February to April 2020 by the IBM Institute for Business Value in collaboration with Oxford Economics and covered 6,000 executives globally including 412 executives from India, across industries, job titles, and geographies.

Download the full survey reports from here http://ibm.co/hybrid-cloud-platform-india

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Brian Pereira
Brian Pereira
Brian Pereira is an Indian journalist and editor based in Mumbai. He founded Digital Creed in 2015. A technology buff, former computer instructor, and software developer, Brian has 29 years of journalism experience (since 1994). Brian is the former Editor of CHIP India, InformationWeek India and CISO Mag. He has served India's leading newspaper groups: The Times of India and The Indian Express. Presently, he serves the Information Security Media Group, as Sr. Director, Editorial. You'll find his most current work on CIO Inc. During his career he wrote (and continues to write) 5000+ technology articles. He conducted more than 450 industry interviews. Brian writes on aviation, drones, cybersecurity, tech startups, cloud, data center, AI/ML/Gen AI, IoT, Blockchain etc. He achieved certifications from the EC-Council (Certified Secure Computer User) and from IBM (Basics of Cloud Computing). Apart from those, he has successfully completed many courses on Content Marketing and Business Writing. He recently achieved a Certificate in Cybersecurity (CC) from the international certification body ISC2. Follow Brian on Twitter (@creed_digital) and LinkedIn. Email Brian at: [email protected]
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