John Edwards, Technology Journalist & AuthorJanuary 13, 20255 Min ReadWavebreakmedia Ltd IFE-240329_4 via Alamy Stock PhotoUnlike their generic cloud counterparts, industry cloud platforms provide specialized services tailored to meet the needs of businesses in specific industries, such as healthcare, finance, or manufacturing.Industry clouds can be best understood as industry-specific solutions, says Brian Campbell, a principal at Deloitte Consulting. He notes in an email interview that all cloud providers have evolved significantly over the past few years. "Initially, they offered infrastructure as a service (IaaS), then moved to platform as a service (PaaS), and now we see the emergence of business outcomes as a service."A growing number of cloud service providers now address business challenges unique to specific industries. "These problems are deeply embedded in ... value chains and require tailored solutions to achieve desired business outcomes," Campbell says. He observes that the number of industry cloud solutions is expanding rapidly, driven largely by sophisticated technology advancements, such as GenAI. "This growth allows businesses to solve industry-specific challenges more effectively and efficiently."Industry cloud services typically embed the data model, processes, templates, accelerators, security constructs, and governance controls required by the adopter's industry, says Shriram Natarajan, a director at technology research and advisory firm ISG, in an online interview. "This [approach] allows faster development of new functionality, better security and governance, and an enhanced and user/stakeholder experience."Related:Industry cloud platforms are pre-configured with industry-specific features, integrations, and workflows that cater to the unique regulatory, operational, and customer needs of a [particular] sector, says Herb Hogue, CTO at systems integrator Myriad360, in an online interview. "Examples include Epic Cloud for healthcare, Siemens' Insights Hub for industrial IoT, SAP for inventory and workflow management, Oracle for ERP and financial services, and CoreWeave, which provides a cloud infrastructure optimized for AI and high-performance computing."Multiple BenefitsCampbell observes that moving to an industry cloud has already helped many enterprises connect to customers and suppliers in highly compelling ways. He notes that adopters generally obtain the greatest benefit when they tie their use of an industry cloud to their business strategy, business outcomes, and return on investment. Other significant benefits include faster innovation, modularity (as new technologies or approaches become available), increased efficiency, more effective business processes, and greater employee engagement.Related:Enterprises spanning many industries can benefit significantly by moving to an industry cloud platform, Campbell says. "Businesses that are faced with many regulations and operational requirements can especially benefit from the specialized services industry cloud platforms," he notes, adding that many industry cloud platforms are preconfigured to meet specific needs, which can help accelerate the time to value realized.Many enterprises have a blinkered view on verticalized solutions, Natarajan says. "They tend to see the platforms they already have in-house and look for solutions that these platforms provide." He believes that enterprise IT and business teams can both benefit from looking at the landscape of verticalized industry cloud platforms.Cloud platforms are continuously evolving and expanding in scope, offering new capabilities that make them attractive to businesses looking to scale rapidly within their industry. "However, businesses must weigh the benefits of speed, and functionality against long-term costs and the potential for vendor lock-in," Hogue warns. "While these platforms often provide faster implementation and industry-specific capabilities at a lower initial cost compared to custom-built solutions, ongoing costs such as subscription fees and upgrades can accumulate over time." He advises potential adopters to carefully evaluate a platform's total cost, capability to match or exceed long-term business goals, and its potential for continuity and adaptability.Related:Getting StartedEnterprises that are ready to transition to an industry cloud platform should begin the process by taking a holistic approach to vendor selection. "The transformation should be supportive of your business strategy and ... driven by where to differentiate in order to best meet the needs of customers, employees, and other stakeholders," Campbell says. He also recommends following the fastest possible path to value. "Numerous providers offer industry cloud solutions, and existing relationships and platform preferences may facilitate an easier integration."Campbell suggests identifying the specific business requirements and regulatory needs that the industry cloud solution will address. He recommends evaluating providers by comparing their features, compliance capabilities, and pricing. "Align use of the solutions to your business strategy and then create a detailed implementation plan that includes goals, timelines, and key performance indicators (KPIs)." Team training is also important. "Help them understand and utilize the new platform effectively."Finally, consider data sharing and security requirements when evaluating an industry cloud platform. Prioritize flexibility and the capacity for innovation, Campbell advises. "The market is evolving quickly, and modular implementations are replacing monolithic ones, offering user-friendly building blocks that are continuously enhanced."About the AuthorJohn EdwardsTechnology Journalist & AuthorJohn Edwards is a veteran business technology journalist. His work has appeared in The New York Times, The Washington Post, and numerous business and technology publications, including Computerworld, CFO Magazine, IBM Data Management Magazine, RFID Journal, and Electronic Design. He has also written columns for The Economist's Business Intelligence Unit and PricewaterhouseCoopers' Communications Direct. John has authored several books on business technology topics. His work began appearing online as early as 1983. Throughout the 1980s and 90s, he wrote daily news and feature articles for both the CompuServe and Prodigy online services. His "Behind the Screens" commentaries made him the world's first known professional blogger.See more from John EdwardsNever Miss a Beat: Get a snapshot of the issues affecting the IT industry straight to your inbox.SIGN-UPYou May Also LikeWebinarsMore WebinarsReportsMore Reports