The Green Compute

Climate change is the new buzzword globally. Enterprises and consumers are looking at sustainable alternatives to protect the resources. One of the tallest industries that has leapfrogged into the Green Space is Information Technology (IT). Led by the top three vis. Amazon, Google and Microsoft, this sector is handholding large multi-continent corporations to MSMEs in their Green Compute journey. 

Growth drivers:

An Emerson Research study pegs the global green technology and sustainability market to grow at 25.8 per cent CAGR from $10.94 billion in 2020 to $68.22 billion in 2028.

A major boost in the direction is the willingness of large enterprises holding confidential data to move to the public cloud. While the journey will save billions in cost savings from power, infrastructure (including real estate) and data centers, it also highlights the enterprise’s endeavor towards a digital-first strategy.  

Secondly, as Emerson Research reveals, the key drivers of the market segment are

  • increased entrepreneurial focus on product/service expansion into new and untapped markets
  • investments in strategic agreements and mergers,
  • competition in the green technology and sustainability
  • and global compliance requirements for data security, disaster recovery (DR). 

Technologically, increased migration to the public cloud, big data, IoT, AI and ML-integrated smart infrastructure, and a connected world has increased cloud adoption. The public cloud is one of the most cost-effective ways to minimize carbon footprint and power costs. 

Cloud services providers (CSPs), too, are upping their game. 

Major Thrust:

AWS has announced Amazon HealthLake, an ML-enabled software application for customers from the healthcare and life sciences industry. It enables organizations to aggregate, label, index, and structure data from silos and process it to derive insights.

To enable the healthcare sector tackle COVID-19 challenges, Microsoft announced Microsoft Cloud, primarily focused on data analytics, for the healthcare segment. 

Similarly, Emrgy Inc., a tech innovator, whose modular turbines harness the power of water as a clean and distributed energy resource, partnered with GE Renewable Energy to expand its hydropower turbines segment.

Traditional industry verticals—earlier weary of tapping the cloud potential are taking baby steps toward their cloud journey. 

Take Israel’s Ministry of Defense (MOD), for instance. It has entered the public cloud sphere for the first time and is leveraging Ajuna Security Inc’s Confidential Cloud software for data security. While complete migration may take years, a public acknowledgement by MoD which holds sensitive data related to the country’s security, is widespread endorsement about how sensitive ministries too are looking at the public cloud in their bid to protect the environment and save operational costs. 

Also, in a bid to help organizations with their digital-first strategy and boost the economy of Spain post the global pandemic, Google has plans to launch a cloud in the region that will leverage Telefonica’s Madrid region infrastructure.

The TCO/ROI calculator

Enterprises are concerned about the increased return on investments and scouting solutions with lower infrastructure and storage costs. Additionally, rapid climate change, the global pandemic, coupled with a weak economic scenario are forcing the enterprises to relook at their business models and fill in the green gaps. 

CIOs, along with the CSOs (chief sustainability officers), are, therefore, looking at green alternatives to reduce the implementation and maintenance costs, including electricity costs, staff expenses, and downtime issues. 

Cloud computing, specially the public and the hybrid cloud model—which has seen an uptake in the start-ups, SMBs and MSMEs so far, is being adopted by large enterprises. Flexible payment models that empower enterprises to pay as per the usage of cloud services, reduced downtime, increased efficiency and productivity and lower carbon footprint are motivating the legacy as well as new-age businesses to reach for the cloud.

According to research firm Statista, the worldwide public cloud computing market is expected to reach an estimated US $482 billion in 2022. This encompasses business processes, platform, infrastructure, software, management, security, and advertising services delivered by public cloud services, Statistical researchers observe. Geographic expansion, aggressive marketing and customer outreach strategies, changing business dynamics, and maturing technologies like ML and AI are pushing enterprises to take the cloud route. The time is ripe for the CIOs, CFOs and CEOs to enter the boardrooms to drive a robust cloud strategy. 


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