The Role of Cloud Computing in Driving Digital Transformation in Diverse Sectors

By Ms Ritsuko Hidaka

We have seen technology evolve immeasurably over the past several decades. Much of the fast-paced change can be attributed to cloud computing — a game-changing technology that has completely changed how businesses work and create.

Over the past few years, we have seen cloud adoption move beyond the tipping point, with most organizations using  cloud computing in their business operations. According to Statista, in 2024, the global public cloud services market is expected to grow by approximately 20.4 percent, amounting to 679 billion U.S. dollars.

Of late, we have witnessed a rise of multi-cloud and hybrid environments with large organizations adopting a multi-cloud strategy which allows them to optimize performance and reduce risks by using multiple cloud providers and on-premises infrastructure​​.

Benefits of Cloud Computing

Cloud computing offers businesses a flexible, scalable, and cost-effective approach to storing, processing, and accessing data and applications over the Internet. This shift has empowered companies to improve collaboration, accelerate innovation, and streamline operations, catalysing digital transformation across various sectors.

• Scalability and Flexibility: One of the key advantages of cloud computing is its inherent scalability and flexibility. Unlike traditional on-premises infrastructure, cloud platforms provide nearly infinite computing resources on demand, allowing organisations to scale operations according to fluctuating demands. This adaptability enables cost reduction, improved resource utilisation, and agility in responding to market dynamics.

• Cost Efficiency: The pay-as-you-go model of cloud computing significantly reduces IT expenses for businesses. By leveraging cloud services on a subscription basis, organisations avoid large investments in hardware, software, and maintenance. This economical approach frees up capital for strategic initiatives, fostering growth and innovation. Additionally, cloud providers offer advanced analytics and monitoring capabilities, helping enterprises optimise resource utilisation and minimise costs.
• Security and Compliance: While businesses transitioning to the cloud continue to prioritise data security and privacy, trustworthy cloud providers substantially invest in strong security mechanisms and compliance frameworks to protect sensitive data and reduce cybersecurity threats. Cloud platforms offer enterprise-grade security features that outperform many on-premises solutions such as encryption, access controls, and threat detection. In addition, cloud service providers follow industry-specific guidelines and certifications to guarantee compliance with data protection regulations and standards.
• Integration of AI/ML in cloud computing: A significant development in cloud computing has been the seamless integration of artificial intelligence (AI) and machine learning (ML). The integration of AI and ML is expected to rise exponentially and completely reshape how cloud services operate. These advancements will have a transformation impact on industries.

Moreover, cloud computing has made it possible for companies to facilitate huge data and sophisticated analytics. By processing and storing large volumes of data on the cloud, businesses gain valuable insights, identify trends, and make data-driven decisions that drive digital transformation. They may also optimise operations, customise consumer experiences, and find new revenue streams by using the robust tools that cloud-based analytics platforms and machine learning services offer them to extract valuable information from their data.

In Closing  

As companies across industries continue to embrace digital transformation, cloud computing remains a crucial enabler, offering creativity, agility, and competitive advantage. Organizations need to view cloud computing not just from the cost reduction perspective but as a significant value-add. Cloud is not just about cost reduction; it’s about enabling innovation.

Using cloud computing technologies enables companies to streamline processes, enhance collaboration, derive actionable insights from data, and expedite the development and implementation of novel solutions. These actions ultimately drive long-term growth and success in the digital ecosystem.

(The author is Ms Ritsuko Hidaka, Head of JDU, Fujitsu, and the views expressed in this article are her own)