A new study has revealed that only a third of companies are seeing their cloud ambitions realised.
HFS and EYGS announced the findings of a six-month study related to the challenging results that many enterprises find during the cloud-native transformation (CNT) process.
HFS CEO Phil Fersht said the study showed that while 65 per cent of organisations made strategic investments in the cloud, only 32 per cent are realising their ambitions.
“Many are failing to capture the value of their investment. The report clarifies the disconnect between many organisations’ supply and buy side while highlighting the need for a clear understanding of business objectives. It also pinpoints the challenge of justifying moving workloads to the cloud and aiming for business transformation through that process,” Fersht said.
More than 29 per cent of businesses felt that CNT would enable more flexibility for employees, while 21 per cent were eager to tap the benefit of accessing information from anywhere. Another 16 per cent hoped that CNT may enable them to use new business models to find new sources of value. The report summarises that clarity on the desired outcomes for business objectives and an effective strategy to achieve and maintain results is needed.
EY Emerging Technologies Leader Matt Barrington said: “Half of the cloud-native transformations are abject failures. Failure often means not capturing business value because technology and business objectives are not aligned.”
Market maturity related to understanding the potential of cloud has risen over the past two years. More than 41 per cent of organisations prioritised effective collaboration in their cloud-first strategy, while 34 per cent focused on getting to market faster with the support of CNT. Another 34 per cent integrated modular digital business models across boundaries, and another 34 per cent created more quickly, smarter prototypes.
The study’s key findings will encourage enterprise leaders to enhance clarity on business objectives, desired outcomes, and practical strategies for achieving and maintaining cloud transformation. With the main challenge being a focus on strategy versus execution, a clearly detailed business objective is needed to guide strategy before endeavouring to capture value from cloud investments.
