Ahead in the Clouds

Jul 30 2015   12:25PM GMT

The invisible business: Mobile plus cloud

Caroline Donnelly Profile: Caroline Donnelly

Tags:
Business strategy
Cloud Computing
Google
Guest Post

In this guest post Amit Singh, president of Google for Work, explains why enterprises need to start adopting a mobile- and cloud-first approach to doing business if they want to remain one step ahead of the competition.

One of the most exciting things happening today is the convergence of different technologies and trends. In isolation, a trend or a technological breakthrough is interesting, at times significant. But taken together, multiple converging trends and advances can completely upend the way we do things.

Netflix is a classic example. It capitalised on the widespread adoption of broadband internet and mobile smart devices, as well as top-notch algorithmic recommendations and an expansive content strategy, to connect a huge number of people with content they love. The company just announced that it has more than 65 million subscribers.

Other examples of new and improved approaches to existing problems abound. As Tom Goodwin, SVP of Havas Media, said recently: “Uber, the world’s largest taxi company, owns no vehicles. Facebook, the world’s most popular media owner, creates no content. Alibaba, the most valuable retailer, has no inventory. And Airbnb, the world’s largest accommodation provider, owns no real estate. Something interesting is happening.”

Each of these companies has capitalised on a convergence of various trends and technological breakthroughs to achieve something spectacular.

Some of the factors I see driving change include exponential technological growth and the democratisation of opportunity, as well as the emergence of public cloud platforms that are fast, secure and easy to use. Together, these trends underpin a powerful formula for rapid business growth: mobile plus cloud.

We know the future of computing is mobile. There are 2.1 billion smartphone subscriptions worldwide, and that number grew by 23% last year.

We spend a lot of time on our mobile devices. Since 2014, more internet traffic has come from mobile devices than from desktop computers. Forward-looking companies are building mobile-first solutions to reach their users and customers, because that’s where we all are.

On the backend, the cost of computing has been dropping exponentially, and now anyone has access to massive computing and storage resources on a pay as you go basis because of cloud. Companies can get started by hosting their data and infrastructure in the cloud for almost nothing.

Hence mobile plus cloud. You can use mobile platforms to reach customers while powering your business with cloud computing. You can build lean and scale fast, and benefit automatically from the exponential growth curve of technology.

As computing power increases and costs decrease, cloud platforms grow more capable and the mobile market expands. In this state, technological change is an opportunity.

How cloud challenges the incumbents to think different

Snapchat is one of the best examples of how this can work. It was founded in 2011. The team used Google Cloud Platform for their infrastructure needs and focused relentlessly on mobile. Just four years later, Snapchat supports more than 100 million active users per day, who share more than 8,000 photos every second

The mobile plus cloud formula is exciting, but it also poses challenges for established players. According to a study by IBM, some companies spend as much as 80% of their IT budgets on maintaining legacy systems, such as onsite servers.

For these companies, technological change is a threat. Legacy systems don’t incorporate the latest performance improvements and cost savings. They aren’t benefitting from exponential growth, and they risk falling behind their competitors who are.

This can be daunting, since it’s not realistic for most companies to make big changes overnight.

If you run a business with less than agile legacy systems, here’s one practical way to respond to the fast pace of technological change: foster an internal culture of experimentation.

The cost of trying new technologies is very low, so run trials and expand them if they produce results. For example, try using cloud computing for a few data analysis projects, or give a modern browser to employees in one department of the company and see if they work better.

There are no “one size fits all” solutions, but with an open mind, smart leaders can discover what works best for their team.

It’s important to try, especially as technology becomes more capable and more of the world adopts a mobile plus cloud formula. Those who experiment will be best placed to capitalise on future convergences.

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