90% of Indian enterprises agreed that cloud transformation is fuelling AI adoption: EY India – ET CISO
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Indian businesses are embracing cloud transformation as a critical enabler of AI adoption, according to the Indian findings of EY’s Global Cloud Implementation Study. With 90% of organizations affirming that AI adoption would not have been possible without cloud migration, and 100% reporting ease in demonstrating cloud ROI to the C-suite, the study underscores the vital role of cloud in India’s digital leap.
Notably, 67% of Indian companies are currently transitioning applications to the cloud, reinforcing the nation’s commitment to innovation and efficiency. Most Indian companies are adopting a hybrid approach, with 80% managing enterprise applications partly on the cloud and partly on-premises. This balanced strategy allows for flexibility while enabling gradual progress toward full cloud migration.
Sharing his views on the report, Abhinav Johri, Technology Consulting Partner, EY India, said “The rapid adoption of cloud technology in India is more than just a technological upgrade – it’s a transformational shift that empowers businesses to reimagine their operating model, products or services. By leveraging cloud to enable AI capabilities, companies can now respond faster to evolving client needs and market changes and deliver enhanced value through AI-led solutions. This marks a new wave of progress, which may potentially position India as a global leader.”
Incorporating AI and ML into business processes has become a transformative benefit, with 37% of Indian companies highlighting these technologies as crucial in driving product and service innovation following cloud migration. Innovation emerges as a standout benefit of cloud-native development. 37% of Indian companies cited improved innovation as the primary advantage of natively developing in the cloud, compared to developing them on-premises and migrating them to the cloud. Followed by improved monitoring of carbon emissions with 29%.
Indian organizations face unique challenges and opportunities in cloud transformation. Only 25% of Indian companies, compared to 38% globally, view skills and capability gaps as a primary barrier to developing cloud-native applications. Instead, cybersecurity (24%) and budget constraints (29%) are the most significant hurdles for Indian enterprises.