September 1, 2014

Industry-specific clouds are coming. How will it change your business?

Ari Karppinen

Head of Managed Services, Tieto

Cloud offerings are evolving to suit much more specific needs. Instead of just talking about Cloud services in general, the forerunners are now focusing on industry specific Cloud services. Different industries have different requirements and demands, and therefore, it is much more convenient for customers if their services are tailored to their specific needs. This will allow them a faster start with cloud and ensure a safe transformation.

Does it feel like you've already learned all there is to know about the cloud? If you’re a CIO, then everything you’ve been talking about lately has probably been cloud-related. I bet you’ve already heard talk about Cloud services which promise to revolutionize your business, but aren’t able to do that after all.

Most cloud solutions are like one-size trainers. You can jog on the track with them, but they'll probably not very comfortable. It will not be easy to reach your top performance and speed. Quick fixes are available for specific needs, but they remain detached and will not adapt to become a part of the business. Current customers must revise and tailor cloud services to ensure that their requirements are met.

In our recent Business Transformation study, we identified Cloud among other trends to be considered a critical part of business within the next 1-5 years. Already, 25-30 per cent of executives feel that Cloud and the Internet of Things are a critical part of their business. It won’t be long until the forerunners have started to adapt the next generation of Cloud technology. It’s clear that industry specific cloud technology will play a key part in defining the next generation of cloud and other future competitive advantages.

Industry specific competitive advantage from Cloud

Industry-specific clouds could be defined as the next-generation cloud service model. So what then is so good about an industry cloud? The service is tailored to fit the needs of one specific business sector. When the service is industry specific, it is designed to cover the broad range of needs of the industry's various functions.

Expertise of the customer’s industry could be defined as the core of the next-generation cloud services. The principle is familiar from more conventional IT services and is now making its way into the cloud world.

By providing optimized and innovative service packages through user and usage data analysis, we are able to maximise our customers’ business value. At its best, industry specific Cloud is a multi-layered entity that covers every need of the customer from basic IT to more specialized industry applications, operating situations and legal requirements. New services can be easily added. This is the core idea of cloud services: to deploy and take out of service quickly, safely, flexibly, and cost-effectively.

Governmental Cloud in Finland

Here in Finland, we already have some good examples of what an industry cloud is like in practice: the Finnish State, in cooperation with Tieto, provides data centre and capacity services based on cloud architecture for the needs of all ministries and departments.

This arrangement covers the government's wide range of specific needs. For example, information security and legal requirements are considered, but flexibility can also be obtained more cost-efficiently than any old operating model can provide.

Other inspiring examples of promising industry clouds are for the Manufacturing and Media industries, which we have focused on. The Manufacturing Industry Cloud provides high backup and high availability-level cloud services in a cost-efficient and scalable manner for industrial production plants. Meanwhile, the Media Cloud digitalizes and transforms multimedia production methods in video management, distribution and archiving.

These new technologies offer genuine new business opportunities in different industries all while improving the productivity and flexibility of information technology.

Ari Karppinen works for Tieto as the head of the Managed Services unit and describes himself as a cloud enthusiast.

For more information on Industry clouds you can read our white paper here. To read our study The Future of  Business Transformation, click here.  More information on Tieto's  Cloud services here.


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