The pandemic has been a chance to sell the cloud


As the corona virus swept around the world work and education moved to the cloud with video meetings and online document, sharing our leisure time relied on cloud service to stream, TV shows and movies. Arguably this shift to the cloud is a trend that's been happening for years, but the pandemic sure sped things up. There are a few big companies that stand to benefit Amazon Microsoft and Alibaba big cloud providers Google's actually relative upstart, but it's now rolling out new services for businesses like better encryption as fast as it can. Owen. Rogers is research director with SNP global, market intelligence, and he's been looking at this increased demand, and how much stress it may have put on the cloud. The big benefit of the cloud is visibility to scale, so if you're running your own infrastructure in your own data center, most enterprises had no idea that they needed. Additional capacity might not be able to get it because supply chains disrupted. But with the use of public cloud, it means that you can scale your applications as needs dictate now in corona virus, there are a lot of companies that needed homeworking, and suddenly a lot of applications needed to be accessed from locations on cloud has enabled this because those enterprises in those businesses can scale up their application capacity immediately without needing to have reserve this capacity in advance. Was the cloud capacity to deal with this surge in demand that we've seen because of the corona virus. Yes, so far most Klay providers seem to have handled it really well, I think the majority of cloud providers have had a huge margin of error, so they purchase way more service capability than they ever thought anyone would need which meant they had a lot of surplus when this need was for quiet and also many of the manage their own supply chain, so they were able to keep disruption to a minimum. So does that mean though if there's only a few companies that are offering the service that they control the price, and could that I guess go up if we're relying on it more and more generally, cloud is getting cheaper. There little blips here and there, but clough to set a precedent for pricing coming down. Club providers won't necessarily cut pricing because there is a risk in doing so, and they don't know how the pandemic is GonNa play out, but they wouldn't put up pricing because that might work against them. A cloud service providers competing in and what they offer, because it's not just simply serve as storage anymore zip. No, so some light providers tried to focus on things such as machine, learning and artificial intelligence. Others are looking towards things such as Iot. They're all making sure that they have these portfolios, so it's almost like like Oh, bricks, you can come use. The cloud provided, choose which Lego bricks you want to use and build your application using your best combination of services it all sounds very flexible at other any companies that are not taking advantage of this other barriers or disadvantages to being cloud based. And cloud is becoming more exciting. There were a lot of regulated industries who are worried about using cloud essentially, because a third party is taken a lot of responsibility so healthcare financial services government were initially bit reluctant to use cloud, but increasingly we're seeing more and more of these companies take advantage of cloud. They just have to prepare more, and they have to put more measures in place. Once they've done that, they're far more willing to consider cloud than they used to be. Do. You think the pandemic impact on how willing companies are to consider using the cloud will have a long-term fact, I think so. Corona virus blocked as a catalyst for the adoption of cloud companies that were already in the clouds have been able to scale up and Dan. They've also been able to scale down if they were struggling and I think this will persuade them that actually it was A. A good decision and they should build more applications in the cloud. Companies haven't already put stuff into the cloud. They're probably realising that they've been fairly static and monolithic, and they haven't been able to take advantage or protect themselves against the situation, and those one set survived the pandemic, probably going to put more and more in the cloud. Just so if something like this happens again. They're better prepare it. Oh and Roger Their research director with SAP Global Market

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