Steering Clear of Barriers to Realize Cloud Full Potential!
Cloud computing has emerged as the key solution to help businesses adapt to the rapidly evolving IT landscape.
In recent years, enterprises worldwide have increasingly migrated to the cloud to realize elasticity, efficiency, and innovation. Accelerating the migration is the pandemic that became the flag bearer for cloud adoption, making cloud key to surviving amid remote working.
Indeed, organizations are reaping business value from their cloud migration, but they’re encountering challenges, too. A recent survey by Accenture revealed that most cloud adopters have failed to realize expected value.
Moreover, business leaders by and large have relatively low confidence in cloud migration. This should make organizations cognizant of the cloud barriers that can erode value.
Key findings of the survey:
- Only 37% of organizations fully realized expected value from the cloud, a mere 2% uptick since 2018.
- 45% of organizations are very satisfied with the cloud results
- Only 29% of organizations are optimistic that their cloud migration initiatives will deliver the expected outcomes
- 54% of high cloud adopters failed to achieve expected cloud outcomes
- 1 in 4 cloud adopters always or usually run into complications during migration
Let’s delve deep into the details:
The good part is that more than a few cloud adopters are realizing real benefits, such as higher cost efficiencies, improved speed to market, and enhanced customer satisfaction. In addition, the cloud has helped them develop business resilience.
But the flip side is not so promising. The survey discovered a distinct pattern in cloud adoption among the organizations. The cloud outcomes differed due to the varying adoption rate, business size, and location.
Companies that tend to be high adopters of cloud tech reported greater success. While 46% of high adopters fully achieved the expected results, 54% failed to realize the desired ROI. Likewise, only 36% of moderate cloud adopters and 28% of low adopters elicited full business value from their cloud initiatives.
High adopters are ahead of the curve as they partnered with managed cloud service providers like Veritis to harness the full potential of the cloud. The survey found that almost one-third (29%) of high adopters are leveraging cloud managed services to a greater degree. It is nearly 3x times more than moderate adopters and 10x times more than low adopters.
Moreover, organizations that partner with cloud service providers are more likely to realize their intended benefits (48%) than those who rely on their in-house team (35%). The findings indicated the importance of relying on cloud service providers, for expert advice is indispensable while migrating to cloud.
Another prominent finding of the survey is that many high cloud adopters were large-scale companies, with revenue worth USD 10 billion or more. Most successful cloud adopters were majorly based in Latin or North America.
Understanding the Cloud Adoption Barriers
With cloud providers doling out multifarious features regularly, the cloud migration has been unwittingly anchored with a number of obstacles.
The survey revealed that the most common obstacle to cloud adoption was ‘security and compliance risk,’ with 46% of respondents reporting so.
‘Legacy infrastructure and application sprawl’ and ‘misalignment between IT and the business’ were the next most common barriers to cloud adoption at 40%.
Navigating Barriers to Excel in Cloud
Amid the pandemic, the cloud has emerged as the last resort to ensure business continuity. Though most companies moved to the cloud successfully, it’s just the tip of the iceberg. Achieving the cloud’s full potential is the crux of the matter, for that’s where most adopters stumble.
Eliciting total value from the cloud demands much more than a technology. It needs businesses to adopt new ways of working, reimage operating models, and adapt new skills.
Four crucial areas to address include:
- Focus on Business Value
Hammer out an optimal cloud strategy. Take into consideration the economic business cases, revenue, cost efficiency opportunities, and business objectives. Put company leaders on the same page.
- Embrace the change
Cloud migration requires employing new ways of working and transforming employees’ work to meet rapidly changing needs. Implement talent readiness programs to evolve the work culture.
- Data and AI
Leverage the power of cloud data models to unleash the data insights and intelligence mired in legacy systems.
- Partnering for success.
Shouldering the cloud migration responsibility on your in-house team can be burdensome. Steering clear of the cloud barriers all alone can be a tough row to hoe. Augment your in-house capabilities by leveraging the skills and expertise of cloud service providers like Veritis. Partner with us and realize greater cloud value at speed and scale.
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