CLOUD GOES VERTICAL - EMERGING TREND 2023
Definition
Vertical cloud computing or commonly known as Industry Specific Cloud solutions, that are designed to move the digital transformation centered on the IT needs of an unbiased or agnostic industry approach to meeting specific, unique operational industry needs of each sector or subsector.
As a posed to general cloud requirements of organizations, certain industries require niched or specific requirements, such as security, compliance, and other factors. A good example is the Healthcare industry, where client information is highly privileged and will need security that will meet with the regulations as set out by the Health Insurance Portability and Accountability Act (HIPAA). Therefore, if a cloud provider can offer a vertical cloud service which meet the HIPPA compliant requirements it makes sense for Healthcare Service Providers makes use of that Industry specific Cloud service and for other factors such as Electronic Medical records.
Gartner explains Industry Cloud Platforms – click here
“In effect, industry cloud platforms turn a cloud platform into a business platform, enabling an existing technology innovation tool to also serve as a business innovation tool,” says Gregor Petri, VP Analyst at Gartner. “They do so — not as predefined, one-off, vertical SaaS solutions — but rather as modular, composable platforms supported by a catalogue of industry-specific packaged business capabilities.”
How Industry Cloud Platforms Work.
Industry cloud platforms are an emerging trend and are developed with an array of cloud -based solutions, accelerators and API configurations that are configurated to support specific industry-based verticals.
In addition, industry cloud platforms are primarily categorized as SaaS however vendors have also integrated PaaS and IaaS. Therefore, composability is an important enabler allowing for efficiencies and adaptability for the specific industry.
Other benefits are the modular approach which can offer packaged business capabilities, industry-aware integrated layer (fabric) of data and connecting processes and composable tooling, thus going beyond traditional cloud services, offering industry specific added value.
Ultimately industry clouds can offer both a holistic and modular approach, thus allowing of organizations to benefit from the advantages of the Cloud, but in an extremely tailored environment best suited for the industry.
Vertical cloud platforms, to reach full potential, will need to evolve into industry specific ecosystems clouds. These ecosystems will eventually allow for organizations to leverage shared business processes such as procurement, distribution, R&D, and innovation.
In addition, these ecosystems can offer enterprises the ability to focus on business functions, application development, innovation without the need for platform management. Finally, these ecosystems will streamline the usage of cloud resources thus reducing costs as organizations will be able to use the services offered by the provider specific to the organizational needs.
Will industry cloud platforms do away with the need for On-Prem?
In essence – yes, however vertical cloud platforms are very much in its infancy. In saying that the big three cloud platforms are integrating verticals into their product offering, (in fact Microsoft debuted their first Industry Cloud for the Healthcare industry in 2020), industry cloud development is accelerating.
At the time or writing this post Microsoft announced the launched of their FUTURE FIRST FOR THE FINACIAL INDUSTY CLOUD SERVICES.
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Gartner in a recent survey in North American and European-based enterprises, estimate that close to 40% of respondents had started the adoption of industry cloud platforms, with another 15% in pilots. In addition, another approximately 15% are considering deployment by 2026.
As adoption increases, Industry Cloud Platforms will eventually do away with the need for on-prem software and hardware, as each Industry cloud will offer all the necessary security, and customized processes for organizations within the industry. In addition, the hardware (backend severs etc.) including hardware maintenance and updates, will be the responsibility of the Cloud provider.
Industry cloud platforms are a notable emerging trend because they create value for companies by offering adaptable and relevant industry solutions. They significantly accelerate cloud adoption by pointedly appealing to business consumers beyond the early users of cloud infrastructure and platform technologies.
Microsoft Azure Industry Solutions
Address organizational unique cloud requirements use Aruze Industry Solutions
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