Enterprises move beyond typical cloud-based delivery model to adopt cloud as disruptive platform for “as-a-service” agenda.
When it comes to the IT mantra “cloud is critical,” some enterprises are true believers and others are not, at least not yet. New research from Everest Group finds that around 86 percent of enterprises consider cloud to be the critical component of digital transformation; however, only 60 percent of enterprises consider cloud services among their “top 3” investment priorities. This discrepancy suggests that “thinking cloud” and “doing cloud” are two very different things and that enterprises are at different maturity levels from a cloud-adoption perspective, especially with respect to driving digital transformation.
Everest Group predicts the cloud services market will grow nearly 25 percent CAGR between 2015 and 2020 as enterprises demand more value from cloud services, insisting on leveraging cloud as the core platform to drive strategic business initiatives. Increasingly, enterprises will be less concerned about the cloud platform or deployment model and its technological superiority, and more concerned about leveraging cloud to drive an “IT-as-a-Service” consumption model that goes beyond provisioning of infrastructure services.
“Cloud is critical for IT-as-a-Service but requires a broader agenda beyond cloud infrastructure. Although nearly 90 percent of cloud deals have an IaaS component, less than half of them can be termed as “transformational”,” said Chirajeet Sengupta, vice president at Everest Group. “Truly successful digital businesses will have to transform applications, infrastructure, and organizational culture to drive growth as well as internal efficiencies. Focusing on just one aspect will result in sub-scale adoption and value loss for the business. Likewise, cloud service providers need to think beyond infrastructure and keep the broader business transformation priorities in mind.”
Other findings in the research:
These research findings are summarized in a set of high-resolution graphics available
A meaningful digital adoption strategy encompasses the entire organization, from back-office and core mid-office business processes to market-facing front-office processes
The global cloud services market 2016: A snapshot
In the broader agenda of infrastructure transformation, enterprises are yet to develop an application-centric strategy
Enterprises adopted cloud services to augment their infrastructure rather than fundamentally transforming it
The nature of the global services industry is shifting as the market matures, and new and disruptive technologies are introduced
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GICs can show some digital adoption victories, particularly in analytics, cloud, and mobility, as well as the MDR, product & technology, and BFSI industries
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Global In-house Centers (GICs) are well-positioned to support the enterprise in digital services adoption; successes, barriers, best practices, call to action
GIC digital adoption maturity: robotic process automation (RPA), social & interactive, mobility, cloud, analytics.