As Internet access, e-commerce, mobile device and application usage, and business adoption continue to expand, the growth in cloud related spending in India should outpace that in the rest of the world, and reach USD 2 billion by the end of the decade.
Cloud computing itself has experienced three noteworthy phases over the previous decade: IT-as-a-Service in the underlying years, application development in the next phase, and now it is entering the business transformation phase. Cloud computing is a noteworthy transformational compulsion, helping organizations to adapt to the progressing digitization of the economy, which has been spotted as one of the greatest difficulties all industries are confronting.
Cloud computing has disrupted the IT world, and it is shaking up the media and entertainment industry, too. In 2016, businesses globally spent USD 111 billion shifting from traditional IT resources to the cloud, estimates Gartner. By 2020, this shift will bring the total direct and indirect cloud IT spending to more than USD 1 trillion. As the IT industry shifts more and more to the cloud, the media and entertainment industry will continue to follow this migration.
Within broadcast, the migration to cloud platforms for content production and management and delivery is a nascent market. But in 2017, anecdotal and case study evidence is proving that the broadcast sector is accelerating its adoption of cloud platforms as specific solutions provide increased choice. There are two big trends. The first is the use of web scale suppliers such as Amazon Web Services (AWS) and Microsoft for content hosting and delivery over IP. The second is moving content to the cloud for virtualized production and distribution in response to market dynamics on workflow, formats, cost, and customer demand. In traditional enterprise IT, cloud accounts for around 20 percent of capacity and the trend is growing rapidly. It appears that broadcast players are unlikely to behave differently from other markets. Some organizations will prefer a big bang approach to migration while others will take a multispeed approach, choosing to adopt cloud on a workload-by-workload basis for business applications.
The current crop of cloud offerings from the big web scale cloud providers specifically address questions around whether production houses, broadcasters, and streaming firms are willing to place their most precious assets in the public cloud.
Suppliers are keen to address advantages around flexibility, cloud bursting, pay per use, security and are confident in their ability to address concerns on pricing, visibility, data location, data governance, and shared environments.
Shifting spend from CapEx to OpEx is sold as a distinct advantage of cloud computing. The choice of going to the cloud provides a welcome alternative to sunk capital investment in rapidly depreciating physical IT assets and enterprise software obtained on a planned basis and which can then be either underutilized or leave the user at risk of being left short of capacity at times of high demand.
But the cloud is not a panacea. As data-heavy production workflows move to the cloud it can mean chewing up vast amounts of storage, processing, and networking resources. A pay-per-use cloud solution could present a major advantage as long as it is accompanied by transparency on pricing, service levels, and flexibility around scaling and performance.
Production and Post-Production
One area where cloud computing has radically transformed the media and entertainment industry is production and post-production. Cloud as a platform for production workflows and for media asset management is now an accepted part of the infrastructure mix. But this shift to UHD and beyond will require bigger and bigger files to be moved around the network.
Activity in production workflow already points to the discussion moving from consideration and assessment to adoption rates of solutions for production, post production, and management. Producing a film or TV show today can take a huge amount of storage space, especially when heavy editing, CGI, or special effects demands become involved.
Data center requires petabytes of storage space, equivalent to millions of gigabytes. Space is required to store not only film footage from all takes and camera angles, but also all editing and backups. Moreover, the same footage may need to be accessed by personnel from multiple departments, which increases the demands on studio servers in terms of storage, queuing time, and costs.
To address these issues, production studios have shifted to the cloud. A video content that would take 10 hours to produce using 100 traditional computers can be completed in just one hour at the same cost by leasing 1000 cloud computers. Production studios are eventually moving to the cloud due to the huge financial and creative benefits. This will level the playing field, enabling small studios to access the same IT resources as industry giants.
However, one concern that some studios have in moving to the cloud is security. But well-managed cloud providers can be more secure than in-house IT due to the fact that cloud companies must prioritize security.
This year, industry expects to see major supply-side activity on the availability of new solutions and on the demand side it expects to see adoption rates surge across production, delivery, and management.
Video streaming from services such as Netflix and Amazon Prime have surpassed live TV viewing. Video streaming and downloads have also overtaken DVD sales. The news and publishing industries have seen similar trends. Industry watchers see these trends portending a sea change in the way media and entertainment is distributed and consumed. Consumers increasingly expect to be able to search all distribution channels through a single digital interface. Connected and cloud-based tools will become the backbone of the media industry during the next two years, as more content is produced for more platforms at higher quality and speed.
Major Opportunities in the Indian Market
The cloud services market continues to rapidly grow in India, as cloud spending is anticipated to reach almost USD 2 billion by the end of the decade. In spite of infrastructure and security challenges, U.S. cloud services companies continue to see opportunities for growth in India, especially as the government invests in improved infrastructure and as Internet access expands to more consumers through smartphones. Various cloud suppliers are today actively competing with each other for India’s inflated cloud spending. The companies’ strengths and areas of focus differ slightly, with AWS adoption driven by business demand for public cloud services, Microsoft’s growth propelled by SaaS offerings, and IBM focusing on private cloud.
Despite challenges with infrastructure, security, and trade policy, India remains a top market for U.S. cloud services exporters due to its large number of consumers with Internet access. India boasts 250 million people with web connected devices, which generally rely on cloud services for applications and other functionalities. Both businesses and the government are buying and using cloud services. As Internet access, e-commerce, mobile device, and application usage and business adoption continue to expand, the growth in cloud related spending in India should outpace that in the rest of the world.
Cloud computing speaks to the ascent of the Internet of services. As digital technologies like IoT, mobility, big data analytics, and likewise, progressively enter each alcove and corner of the economy and society, by and large, an ignition in the volume and assortment of cloud-based services are moving through the internet. As a consequence, the cloud computing model requires an exceedingly controlled approach to deal with the management, delivery, and utilization of services for both people and organizations. Cloud computing is driving a truly necessary automation of IT data centers, as well as IT infrastructures.
Cloud-based infrastructure necessitates for relative developments in terms of productivity and quality and an equal emphasis on engineering and management. Organizations now rely on managed cloud service providers, both for customary, commoditized services, as well as for driving-edge services that require profoundly specific aptitudes. This helps them focus all their organizational resources and energy on the services that drive truly distinguished business value. An organization gets to be an efficient service provider, by offering the cloud services they earlier utilized internally to the general market.