A Turning Point for Digital Transformation Arvind Krishna

The disruption and uncertainty we’re going through has actually accelerated a digital transformation that was already underway.

In other words, it has been transformed into the “turning point” for many companies.

For it’s an opportunity to develop new solutions and new ways of working.


Why digital transformation matters

Although many enterprises’ vulnerabilities have been exposed throughout this unprecedented period, many companies have rapidly responded by swiftly adopting artificial intelligence and hybrid cloud-based IT architectures.

This has added and accrued benefits in that it enables them to build a continuously invaluable agility and resiliency into their networks, while also preparing them to embrace emerging technologies such as 5G and edge computing.


The digital transformation drivers

AI and hybrid cloud are the two dominant forces driving digital transformation.

According to the market intelligence firm IDC, by 2024 the enterprises that use AI will be 50% faster than those that do not.

Digital transformation means putting artificial intelligence at the centre of workflows, and using the insights generated from that process to constantly improve products and services.

As more and more work becomes remote-based, there’s going to be a need for automation – and AI has the potential to make it work.


“AI for IT”

Arvind Krishna also revealed a number of new IBM offerings designed to help companies accelerate their digital transformations.

The first, “AI for IT”, gives CIOs the ability to automate IT infrastructures.

Utilising Watson AIOps to self-detect, diagnose and respond to IT anomalies in real time, this immediately reduces costs and ensures a more resilient network.

Built on Red Hat OpenShift to run across hybrid cloud environments, Watson AIOps works with collaboration technologies at the centre of today’s distributed work environment, such as Slack and Box.

As Arvind Krishna went on to explain, one hour of an IT outage can cost as much as $250,000. Across the industry, about $265 billion could be wasted due to lost productivity due to IT outages.


The Hybrid Cloud

The second of the two dominant forces is hybrid cloud.

The hybrid cloud model has distinct advantages over other IT architecture.

Any optimised transformation needs to be powered by a hybrid cloud architecture using open-source software.

This not only makes companies more secure, but also enables them to quickly adapt to shifting customer demands and changing market conditions.

Unlike existing IT networks, hybrid cloud adapts to the infrastructure that enterprises already have. It also frees them from being locked into any one vendor’s offerings.

Hybrid architectures, which can involve a combination of public and private clouds and on-premises networks, have the flexibility to process workloads closest to where the data is generated.

This is now a necessity in high-tech factories, while also making it easier to comply with different regional regulations on data use.


The 5G Era

The increasing interest of clients in the future of AI and hybrid cloud technology has served to make the introduction of 5G all the more important.

Delivering not only for much better speeds but also much better latency, 5G offers the potential to develop entirely new ways of utilising enterprise IT.

As 5G adoption expands, telecommunications providers will be enabled to quickly orchestrate virtual and container network functions, helping them provide new services.

This could be the moment when the digital transformation of business and society suddenly accelerates.

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