Industry cloud platforms: The complete guide
Although general-purpose cloud platforms paved the way for new business technologies, they only address horizontal market issues. Simply put, these cloud computing products provide generalized solutions. SaaS products leave little room for configuration, while IaaS and PaaS systems require extensive coding experience.
To tackle vertical market challenges, you need industry cloud platforms. They’re an emerging trend that combines SaaS, IaaS, and PaaS technologies into one out-of-the-box system, and you can configure them to focus on industry-specific issues. Since they’re new to the market, you might find them confusing. Don’t worry -- we’ll discuss everything you should know about industry cloud platforms, their advantage over general cloud products, and the common challenges faced when executing them.
What Are Industry Cloud Platforms?
Industry cloud platforms are an emerging trend in cloud computing. They combine the configurability of IaaS and PaaS tools with the out-of-box functionality of SaaS products -- the innovation results in a customizable yet low-code platform.
Industry and general-purpose cloud platforms have many differences, but what sets the former apart is their focus on vertical market challenges.
Uma Nair, Marketing Analyst at Gumlet says, "Specialized businesses often find it a challenge to use general-purpose cloud platforms, interestingly, because they often try to address general-purpose needs." She adds, “Vertical markets, or companies that offer market to a specific target, are always at a standstill in between the lack of industry-specific technological developments and the inability of general-purpose cloud platforms to address management, analysis, and compliance tools that dive into a specific market’s needs."
General cloud systems offer all-purpose features applicable across different industries. They provide all users with the same features and functions regardless of their business processes and daily workflow.
Here are examples of general could systems in the market:
- Google and Apple Cloud
- Slack
- MailChimp
- Dropbox
- Zoom
- Google Apps
On the other hand, industry cloud platforms focus on addressing industry-specific needs through cloud computing, and they usually have third-party hosts. You can often see industry cloud platforms in finance, healthcare, or logistics, although you’ll also find configurable systems for other industries.
Examples of industry cloud platforms in the market are:
- Deloitte’s Opioid360. Healthcare industry cloud platform that helps identify addiction trends, diagnosis of issues, and prediction of outcomes to identify those most at risk of addiction.
- Amazon Web Services (AWS) for Financial Services. Collaboration between NASDAQ and AWS for data, analytics, and software for business financial services.
- Fujitsu’s Retail-as-a-Service Solution. Hallmark uses Fujitsu’s RaaS solutions to provide real-time detail on merchandising status, data exchange, full POS integration, web portal ordering service, etc.
The construction industry is also one of the potential industries where industry cloud computing can provide the most benefits.
According to David Cusick, CMO at AllStar Home, "Cloud computing is a relatively new concept in the construction and real estate industry because of budgetary and massive ICT infrastructure challenges. However, over the years, the potential of industrial cloud computing to help in project collaborations between architects, engineers, and project managers, as well as easy access to constructions documents, plans, and drawings from around the world, make construction cloud computing an anchor of the industry’s digital revolution."
The Primary Function of Industry Cloud Platforms in Modern Business Processes
There’s no shortage of business automation systems. A quick Google search will reveal dozens of cloud computing platforms that automate various business processes, from appointment setting to employee onboarding.
But contrary to popular belief, incorporating them into your workflow doesn’t always yield positive results. Toggling between too many work platforms leads to task switching. It’s a cognitively demanding action that disrupts the thought process -- making it challenging to enter a state of flow.
According to Stephen Baldwin, Founder of Assisted Living, "The tech industry is saturated with SaaS, IaaS, and PaaS cloud computing solutions for businesses. The challenge here -- and this applies to both specialized and general service industries -- is if there is a way to use as few solutions as possible because having too many platforms can cause reduced efficiency instead of improving them -- all while paying several subscription costs."
The answer to these? Industry cloud platforms.
Through robotic process automation (RPA), artificial intelligence (AI), and machine learning (ML) technologies, they create sophisticated, customizable cloud computing systems.
You can use them to collate legacy systems and business tools. That way, you can manage all your tasks and responsibilities from a single platform configured to your industry needs.
The Advantages of Adopting Industry Cloud Platforms
Industry cloud platforms are an innovative form of cloud computing. Their configurable, streamlined functionality and focus on vertical market issues set them apart from general cloud systems.
Customized Solutions for Vertical Industries
Industry cloud platforms appeal to users who need vertical market solutions. Instead of addressing horizontal market issues with generalized features, they provide specialized solutions geared toward a specific segment.
Greg Heilers, the co-Founder of Jolly SEO, emphasizes the importance of specialization in today’s competitive markets. He says, "The internet is filled with generalists. You’ll see various brands, developers, and service providers focused on solving as many market issues horizontally. The problem with them is they only address surface-level concerns. If you want to dive deep into your industry and tackle super-specific buyer pain points, you need vertical solutions."
Reduce Operational Expenses
Clients often ignore business automation tools because they think they can’t afford them.
While the subscription fees might increase your overhead, automating business processes cuts your daily expenses. You’ll save more money in the long run.
Let’s say you successfully migrate your work files. Instead of paying executive assistants to manage your data and daily tasks, you can switch to AI-powered management tools.
Apply the same logic when automating other areas of your business. Eventually, you’ll increase profit margins, plus your employees can focus on core responsibilities and complex tasks.
Businesses can find themselves reducing operational costs and improving overall financials with the help of industry cloud platforms. Here’s why:
- Industry cloud platforms allow specialized industries to have a single cloud platform for general and specialized services because these products are tailored to their needs -- thereby reducing the cost of other cloud subscriptions.
- Industry cloud platforms improve overall operational efficiency because of tailored industry-specific services, which can translate to improved services (i.e., less time spent on manual tasks, which AI-powered tools from the industry cloud can do.)
While cloud computing is undeniably significantly costly, investment in network transformation with the cloud can greatly benefit overall financial performance and efficiency in the long run.
Accommodates System Customization
Another selling point of industry cloud platforms is their configurability. Users can customize their cloud computing system according to their daily workflow and vertical market challenges.
Again, businesses have varying needs. eCommerce brands might focus on CRM and project management integration, while financial service providers could prioritize customer data verification.
Linda Shaffer, Chief People Operations Officer at Checkr, says, "The customizability of cloud computing allows for flexibility and scalability in terms of employee access and infrastructure. Unlike traditional systems, cloud computing—especially industry-specific cloud platforms -- gives more avenues to upscaling and downscaling systems depending on business needs at any specific period."
Requires Minimal to No Coding
Like SaaS products, industry cloud platforms offer out-of-the-box functionality. They use preset RPA, AI, and ML technologies to pull relevant data, analyze performance analytics, and automate business processes. You can hit the ground running upon system integration.
For businesses that lack experience in developing, we suggest looking into low-code and no-code platforms. They feature component libraries and tools for app development. You can utilize these systems to create simple applications without wasting time, money, and energy.
The Possible Challenges You’ll Face When Adopting Industry Cloud Platforms
Expect to come across some challenges when adopting industry cloud platforms. Having emergency systems in place mitigates the damages of poor execution, e.g., security breaches, data loss, and system shutdowns.
In-Depth Customization Limitations
While low-code industry cloud platforms are customizable, they have several limitations -- you can’t bypass their functionality. At most, you can only configure their existing tools to address predetermined vertical market challenges.
IaaS and PaaS products offer more freedom. Just not that they’re difficult to use -- it would take an experienced coder to maximize their features.
Long-Term Vendor Lock-Ins
Depending on a single industry cloud platform creates vendor lock-ins. Vendor lock-ins happen when a business becomes too dependent on one single product or service that, once you collate your business tools and migrate company data, switching brands will no longer be practical. You’ll just lose money and compromise your cybersecurity.
It’s best to research your options thoroughly. Before signing up for an industry cloud platform, make sure it addresses your pain points, allows vertical market growth, and tackles workflow bottlenecks.
Potential Security and Compliance Concerns
Although convenient, low-code tools present several cloud security risks.
Rectifying the vulnerabilities of open-source systems requires backend coding -- which industry cloud platforms don’t allow. Some issues might go unnoticed if you’re careless.
To workaround these risks, you should:
- Research your cloud service provider extensively.
- Review their security protocols and code signing certificate.
Remember: the brand or developers you choose controls your system’s information security management system.
Mark Pierce, CEO of Colorado LLC Attorney, "As with all tech products, industry cloud platforms are not exempt from cloud security risks. Since they are industry-specific, they are highly likely to be prey for cyber hackers more than others." He adds, "One most common issues that could arise from these are HIPAA violations from the healthcare industry that can happen when access to PHI is acquired through illegal means like hacking and security breaches."
Configuration Requires A/B Testing
New users often overlook A/B testing. They expect industry cloud platforms to function out of the box.
However, that isn’t the case. While low-code apps eliminate tedious coding, you must still adjust their components to achieve your desired outcome. Haphazard implementation wastes functionality.
To minimize complications during the trial phase, set aside ample resources for A/B testing. Likewise, ensure your IT team addresses one issue at a time. Forcing new technologies to resolve multiple vertical market challenges under rigid budget restrictions will lead to failure.
Bottlenecks With Legacy System Integration
Legacy system integration is challenging. Since the programs were developed years ago, compatibility issues might arise with their protocols, programming languages, and database.
For some, bypassing these restrictions costs more than retaining outdated systems. Forced system integration compromises database quality issues, e.g., data loss, file duplication, and record corruption.
Industry Cloud Platforms as the Future of Business
Cloud computing is not a new phenomenon. Over the years, the cloud has helped businesses prosper, expand, explore limitless possibilities, and overcome operational challenges because of its flexibility, scalability, cost savings, collaborative features, and efficiency. And just when we thought the cloud couldn’t get better, industry cloud platforms are now stealing the limelight.
Despite being in its early stages, industries that have already adopted industry cloud platforms like Amazon Web Services, IBM, SAP, Microsoft, etc., to serve specific business needs in the healthcare, retail, and finance sectors have shown how it can significantly improve operational efficiency.
The future of business relies on continuous technological advancements, and with the onset of industry cloud platforms challenging general-purpose cloud platforms -- technical industries should be able to drive business transformation more than ever in the near future.
Image credit: rfphoto/depositphotos.com
Roman Shvydun writes informative articles mainly about everything related to marketing, business, productivity, workplace culture, etc. His articles focus on balancing information with SEO needs, but never at the expense of providing an entertaining read. See a few more examples of Roman’s articles by visiting his Twitter: https://twitter.com/Roman27561221