Two-thirds of large enterprises are not realizing the full benefits of
their cloud migration journeys identifying security and the complexity
of business and operational change as barriers, according to a new
report from Accenture (NYSE: ACN).
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Accenture survey suggests that the cloud migration journey is more complex than anticipated for innovation and efficiency (Photo: Business Wire)
Based on a survey of 200 senior IT professionals from large businesses
worldwide, the report — “Perspectives
on Cloud Outcomes: Expectation vs. Reality” — suggests that the
cloud migration journey is more complex than anticipated for innovation
and efficiency.
While the vast majority of companies cite achieving some level of their
desired cloud outcomes — overall satisfaction levels exceed 90% on
average — only about one-third of companies, on average, reported they
have fully achieved their expected outcomes across the four categories
of cost (34%), speed (36%), business enablement (35%) and service levels
(34%).
“Like most new technologies, capturing the intended benefits of cloud
takes time; there is a learning curve influenced by many variables and
barriers. Taking your cloud program to the next level isn’t something
anyone can do overnight — clients need to approach it strategically with
a trusted partner to access deep expertise, show measurable business
value and expedite digital transformation,” said Kishore Durg, senior
managing director of Accenture Cloud for Technology Services. “Also, if
IT departments fail to showcase direct business outcomes from their
cloud journeys, they risk becoming less relevant and losing out to
emerging business functions, like the office of the chief data officer,
that are better able to use cloud technologies to enable rapid
innovation.”
The barrier to realizing the benefits of cloud that survey respondents
noted most frequently (when asked to identify the top three) was
“security and compliance risk,” cited by 65% of respondents, followed by
“complexity of business and organizational change” (55%), “legacy
infrastructure and/or application sprawl” (43%) and “lack of cloud
skills with the organization” (42%).
The report suggests that, to overcome the skills barrier, IT teams might
look to managed service providers to run cloud services on their behalf.
In fact, 87% of the surveyed executives said they would consider the use
of managed cloud services, with the greatest number of respondents
citing “access to the right skills” as the top benefit of these services
— even slightly ahead of “lower costs.”
Similarly, the cloud model employed by organizations appears to have an
influence on their ability to capture expected cloud results. Companies
employing private clouds tend to lag their counterparts employing public
cloud or hybrid models when it comes to fully achieving expected
outcomes (28% vs. 42% and 38% respectively). While private cloud users
seem to struggle more generally, they are most challenged in achieving
desired cost saving and service level improvements. More than half of
public cloud users (54%) report having captured their cost saving goals,
yet only 28% have experienced their anticipated speed-to-market benefits.
“Our Accenture research also shows that when it comes to cloud
technology, the more clients consume, the greater value they’ll see in
return. Specifically, as clients expand their use of cloud applications
and footprint across different functions, divisions and geographies,
they’ll increase the areas to which the technology can bring value; in
short, the more widespread your adoption, the greater the value lift,
creating an upward curve in return on investment,” Kishore added.
About Accenture
Accenture is a leading global professional
services company, providing a broad range of services and solutions in
strategy, consulting, digital, technology and operations. Combining
unmatched experience and specialized skills across more than 40
industries and all business functions — underpinned by the world’s
largest delivery network — Accenture works at the intersection of
business and technology to help clients improve their performance and
create sustainable value for their stakeholders. With 477,000 people
serving clients in more than 120 countries, Accenture drives innovation
to improve the way the world works and lives. Visit us at www.accenture.com.
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