In its Cloud Radar study, which spanned six countries — the US, UK, France, Germany, Australia and New Zealand — and had over 2,500 respondents, Infosys found that effective adoption of the cloud could bring in up to $414 billion in new net profits annually for businesses.
The company said it identified a strong profit link to enterprises using cloud to rapidly bring new solutions and services to the market, and leveraging automation and artificial intelligence to build new cloud-based sources of revenue.
“There’s a strong correlation to the bottom lines of corporations and cloud transformation. It’s good to see that we are able to add direct value to the bottom line of enterprises we work with and this study has proven that we have a phenomenal opportunity,” said Narsimha Rao, EVP and head of cloud, infrastructure and security services at Infosys.
The survey also found that for enterprises to achieve cloud-fueled profit boosts, at least 60% of their IT systems need to be on the cloud, and for businesses to extract maximum benefits from AI, at least 80% of their business functions need to be on the cloud.
However, the study found that just one in six enterprises have achieved exceptional cloud performance. Only 17% of respondents had shifted over 60% of their business to the cloud in 2020, but that number is expected to reach 41% of businesses by as early as next year.
Rao added that this represented a massive opportunity for Indian IT services firms such as Infosys to help enterprises transition to the cloud. He said that while several enterprises boosted their cloud adoption as a defensive measure last year, these businesses were now looking to adopt cloud technologies to go on the offense and grow their businesses and profits.
Infosys said that even sectors such as hospitality, which have been among the hardest hit by the pandemic, are looking to transform themselves through cloud adoption to adapt to a future of hybrid work.