Cloud Migration Journeys Have Not Achieved Expected Benefits for Two-Thirds of Enterprises Surveyed in New Accenture Report
May 31 2019 - 8:59AM
Business Wire
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 AccentureAccenture 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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Mylissa TsaiAccenture+1 917 452
9729mylissa.tsai@accenture.com
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