Rising Cloud cost a concern for Indians firms in Gen AI era: Report

New Delhi, Aug 31

The rising cost of Cloud continues to be a concern as larger organisations in India achieve cost optimisation of only 20 per cent from the cloud while medium and small-scale organisations fall short of meeting their cost-saving goals, a report showed on Thursday.

Around 75 per cent of organisations 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 per cent of organisations in the country are currently implementing cloud strategies for modernising the technology stack and infusing intelligence into business applications.

Organisations 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 per cent of Indian organisations 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.

According to the report, 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 more resilient, digitally-driven future, effective data and analytics shall be instrumental,” said Alexy Thomas, Partner-Technology Consulting, EY India.