Rising Cloud costs a concern for Indian firms in the Gen AI era
The rising cost of the Cloud continues to be a concern as larger organizations in India achieve cost optimization of only 20 percent from the cloud while medium and small-scale organizations fall short of meeting their cost-saving goals. Around 75 percent of organizations also encounter a talent gap to enable cloud journeys as the release of the technologies is faster than its adoption and man-power readiness for it to be implemented and sustained, according to the EY-FICCI report, titled ‘India’s cloud and data revolution: From adoption to enabling innovation’.
About 78 percent of organizations in the country are currently implementing cloud strategies for modernizing the technology stack and infusing intelligence into business applications. Organizations that neglect the adoption of the cloud may face challenges harnessing the full advantages of advanced technologies such as Gen AI, the report noted. “With 80 percent 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,” said Abhinav Johri, Partner-Technology Consulting, EY India.
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 Centres) have become cloud engineering hubs for global companies. The success of Generative AI is closely tied to cloud computing, as it relies on large datasets and robust computing infrastructure, both of which are inherent features of cloud technology. The adoption of Generative AI is expected to lead to increased data usage and greater consumption of cloud resources. “As India’s cloud-first companies spearhead innovation and sustainable growth, leadership means charting a course towards a more resilient, digitally-driven future. Effective data and analytics shall be instrumental,” said Alexy Thomas, Partner-Technology Consulting, EY India.
