HFS Highlight: Daimler has got the timing right to embrace cloud through partnership with Infosys

COVID-19 has brought with it the need for businesses to adapt quickly and change gears and directions swiftly to survive. To ensure survival, automotive companies need to find means to work with broader mobility concepts, which will require on-demand access to IT infrastructure anywhere anytime. While the businesses are aware of the mobility imperative, they cannot achieve it without partnering with the right information technology (IT) service provider. Understanding the criticality of choosing the right IT service provider as a partner, in combination with its focus on slashing cost, Daimler has partnered with Infosys to implement Hybrid cloud infrastructure.

Hybrid Cloud is at the heart of discussions today

According to the study that we conducted in conjunction with Infosys to understand the impact of COVID-19, accelerating investments in cloud technologies and cloud business applications to drive core IT modernization was ranked among the top two “have-to-haves” by the survey participants across the globe.  Based on another study that we conducted in conjunction with KPMG, as shown in Exhibit 1, Hybrid cloud investment will dominate among the various types of cloud deployment in the post pandemic era as the businesses look for flexible infrastructure that provides agility. Moreover, hybrid cloud infrastructure is enabled by a data fabric that uses a software defined approach to provide a common set of data services across a combination of IT resources.

Exhibit 1: Hybrid cloud investments dominate after the outbreak of pandemic

Sample: 300 executives across Global 2000 enterprises surveyed in May-June 2020 (Phase II sample)

Source: HFS Research in conjunction with KPMG

Let us delve into the deal

As businesses swim upstream across the COVID-19 river, they have two imperatives – (i) Survival, (ii) Get ready for the digital era. While focusing on cost containment strategies, the company needs to prepare for future, which brings with it the need to work on modular product design and development. Following are the salient aspects about the deal that Infosys has signed with Daimler:

• A smart hybrid cloud, leveraging Infosys Cobalt and leading cloud providers, accelerating the multi-cloud journey with a focus on open source adoption
• A carbon neutral solution, by consolidating and rationalizing data centres across all regions
• Standardized technology stack by bringing in an ecosystem of best of breed partners
• Creation of a state of the art Zero Trust network with seamless technology upgrades
• Persona-driven and cognitive, AI powered anytime-anywhere workplace solution that empowers the end-users

The partnership with Infosys is meant to help Daimler transform its infrastructure across its plants and regions, consolidate its data centres and scale its IT operations. The partnership with Infosys will also help Daimler in its multi cloud journey, with a focus on open-source adoption in future.

The Bottom Line: Hybrid cloud will help Daimler with flexible and cost optimal environment in future.

Product design and development will transform from “all under one roof” to “work anytime anywhere” in future, which has created a need for flexible digital infrastructure that is secure and optimal. For companies such as Daimler that work with extended family of numerous suppliers and partners, transformation to hybrid cloud will provide more flexibility and help in cost take out. It will be interesting to wait and watch the innovation aspect that the strategic partnership between Infosys and Daimler is expected to bring into Daimler, in addition the cost optimal environment in future.