As organisations stride towards digitalisation, re-evaluate their business continuity plans and define what the Future of Work will look for them, Cloud adoption is expected to surge. In June, there were several announcements that indicate the market is responding to this increased interest.
Cloud Providers Gearing up to Enable Economic Recovery
Global economies are slowly gearing up for a technology-led recovery phase and several organisations are taking advantage of the disruption to start or accelerate their digital transformation plans. Many are looking at this as a good opportunity to replace their legacy systems. Cloud providers are expected to lead from the front when it comes to helping the economy recover.
Government agencies have been immensely impacted by the COVID-19 crisis and will need to shift fast into the recovery mode. Salesforce launched a multi-tenant dedicated Cloud infrastructure for their US Federal, state and local government customers, government contractors, and federally funded research and development centres. Hosted on AWS GovCloud and FedRAMP compliant, it provides customers with a compliant and secure environment to deploy Salesforce’s CRM platform and industry solutions. The launch is expected to empower government agencies with the ability to deliver better services, scale to unprecedented demands and connect to citizens on their channel of choice.
Initiatives such as the UK Crown Commercial Service (CCS) and Google Cloud agreement will also help in the recovery phase. This allows qualified public sector agencies to avail of a discounted price for their Google Cloud deployments. Earlier in the year CCS entered into a price arrangement with Microsoft as well. If Cloud has to be the vehicle for economic recovery, such arrangements will benefit cash-strapped public sector organisations.
The recovery will also require the entire technology ecosystem to engage not only with large enterprises but also small and medium enterprises (SMEs). Alibaba Cloud announced an investment of US$ 283 million to revamp its global partner program. They plan to introduce new partner-customer communication processes to enhance response time and bring more opportunities to independent software vendors (ISVs) managed service providers (MSPs) and system integrators (SIs) as partners.
Europe Emerging as a Cloud Hub
As a fallout of the current political scenario, Europe is pushing for more cloud independence and to become an innovation hub as a vendor-neutral network for cloud computing providers and their customers.
GAIA-X Foundation is a federated data infrastructure project initiated to build a unified system of cloud and data services to be protected by EU Laws – including GDPR, the free flow of non-personal data regulation and the Cybersecurity Act. France and Germany kicked off the GAIA-X cloud project last year and the system is open for participation to national and European initiatives for exchange of data across industries and services such as AI, IoT and data analytics. GAIA-X took another step towards becoming a real option for European organisations with the establishment as a legal entity in June. Various organisations – including Dassault, Orange, Siemens, SAP, Atos, Scaleway and Deutsche Telekom are a part of this non-profit platform, working together on Cloud applications, high-performance computing as well as edge systems. The project is expecting to release a working model by early 2021 and will be further enhanced in phases.
Global Cloud leaders are also focusing on expanding their presence in Europe. In February, Microsoft announced a new data centre in Spain leveraging Telefónica infrastructure. In a similar move, Google Cloud announced its plans to expand in the region in partnership with Telefónica. Telefonica and Google are expected to jointly work on Spain’s digitalisation through edge infrastructure and 5G for consumers and telecom infrastructure.
Cloud Providers Bolstering their Cybersecurity Capabilities
2020 has witnessed a host of cybersecurity threats and data breaches. While Cloud providers have always evolved their cybersecurity capabilities, it has become important for them to become vocal about these measures to build trust in the industry.
To complement the Microsoft Azure IoT security, Microsoft acquired IoT security specialist CyberX, last month. The acquisition will enable greater security for the IoT devices connected to the Microsoft network and will help their customers to gain visibility through a map of devices thus allowing them to gather information on security risks associated with thousands of sensors and connected devices. This will enhance smart grid, smart manufacturing and digital assets and profiles and reduce vulnerabilities across production and supply chain.
In another move which will benefit the ISV and SI ecosystem, NetFoundry’s zero trust networking API is now available on RapidAPI. RapidAPI’s marketplace enables developers to easily find, connect to, and manage the APIs they need to build a range of applications. Now the ISV and developer community can access NetFoundry’s software-only, zero trust models on RapidAPI.
More Partnerships between Software/Industry Solutions Providers and Cloud Providers
The COVID-19 crisis has had a far-reaching impact on several industries. The technologies that are expected to see the most uptake are IoT and Future of Work technologies.
Ecosystm Principal Advisor, Kaushik Ghatak says, “COVID-19 has brought to the fore the need for managing risks better. And the key to managing risks is to have better visibility and drive data-driven decisions; the sweet spot for IoT technologies.”
Last week, Microsoft and Hitachi announced a strategic alliance to accelerate the digital transformation of the Manufacturing and Logistics industries across Southeast Asia, Japan and North America. The first solutions are expected to be made available in Thailand as early as this month. Hitachi brings to the table their industry solutions, such as Lumada, and their IoT-ready industrial controllers HX Series. These solutions will be fully integrated with the Microsoft cloud platform, leveraging Azure, Dynamics 365 and Microsoft 365.
Another sector that has seen significant disruption is Real Estate. Ecosystm Principal Advisor, Andrew Milroy in his blog Proptech: Driving Digital Transformation in the Wake of COVID-19 sees a real opportunity for the sector to transform. “Many activities within the property ecosystem have remained unchanged for decades. There are several opportunities for digital engagement and automation in this sector, ranging from the use of robots in construction to the ‘uberisation’ of the residential property customer journey.”
June saw Honeywell and SAP partner to create a joint cloud-based solution based on Honeywell Forge and SAP cloud. The cloud solution is aimed at real estate operators and customers providing aggregated financial and operational insights in real-time. The solution leverages the Honeywell Forge autonomous buildings solution and the SAP Cloud for Real Estate solution, enabling facility managers and building owners to reposition their real estate portfolios through parameters such as cost savings and energy efficiency and help improve the tenant experience.
As organisations struggle to maintain operations during the ongoing crisis, there has been an exponential increase in employees working from home and relying on the Future of Work technologies. Ecosystm principal Advisor, Audrey William says, “During the COVID-19 pandemic, people have become reliant on voice, video and collaboration tools and even when things go back to normal in the coming months, the blended way of work will be the norm. There has been a surge of video and collaboration technologies. The need to have good communication and collaboration tools whether at home or in the office has become a basic expectation especially when working from home. It has become non-negotiable.”
AWS and Slack announced a multi-year partnership to collaborate on solutions to enable the Workplace of the Future. This will give Slack users the ability to manage their AWS resources within Slack, as well as replace Slack’s voice and video call features with AWS’s Amazon Chime. And AWS will be using Slack for their internal communication and collaboration.
Delivering excellent customer experience in the midst of the crisis has proved to be difficult for organisations. Customer care centres have been especially impacted by high volumes of customer interactions – through voice and non-voice channels. This will see a major rise in adoption of cloud contact centre solutions. Contact centre providers are ramping up their capabilities in anticipation. Genesys selected AWS as their preferred cloud partner to deliver new features to customers and build a global and secure infrastructure.
The industry can expect more news from Cloud providers in the next few months as they ramp up their capabilities and channel their go-to-market messaging.