Cloud adoption goes mainstream, yet value not maximised

  • 68% of organisations are using cloud to help drive business outcomes
  • 69% of organisations do not have mature cloud strategies

Cloud adoption goes mainstream, yet value not maximised

 

CISCO released the findings of a global study indicating that while cloud adoption continues to accelerate, few organisations are maximising the value that cloud can offer.

According to the study, nearly 68% of organisations are using cloud to help drive business outcomes, a 61% increase from last year's study.

The increased cloud adoption is being fuelled by cloud-native applications, including security and the Internet of Things (IoT) cloud-based solutions.

However, most organisations (69%) do not have mature cloud strategies and only 3% have optimised cloud strategies generating superior business outcomes.

On average, the most “cloud advanced” organisations see an annual benefit per cloud-based application of US$3 million (RM12.41 million) in additional revenues and US$1 million in cost savings.

These revenue increases have been largely the result of sales of new products and services, gaining new customers faster, or accelerated ability to sell into new markets.

The study also reveals that 95% of those leading organisations with optimised cloud strategies have built a hybrid IT environment that uses multiple private and public clouds based on economics, location and governance policies.

The Cisco-sponsored InfoBrief “Cloud Going Mainstream: All Are Trying, Some Are Benefiting; Few Are Maximizing Value” was developed by International Data Corporation (IDC).

The study is based on primary market research conducted with executives responsible for IT decisions in over 6,100 organisations across 31 countries that are successfully implementing private, public and hybrid clouds in their IT environments.

This marks the second year of the study, nearly doubling last year’s sample size.

In the study, IDC identifies five levels of cloud maturity: ad hoc, opportunistic, repeatable, managed and optimised.

Hybrid cloud adoption by country
Hybrid cloud adoption (public cloud and private cloud services) varies by country, with Korea and Japan among the countries with the greatest percentage of organisations using a mix of public cloud services and dedicated assets.

The study notes the percentage of organisations with hybrid cloud adoption in the following countries:

  • 45% United States
  • 47% Latin America Region
  • 46% UK
  • 42% France
  • 51% Germany                                           
  • 41% Australia
  • 47% Canada
  • 55% Korea
  • 42% The Netherlands
  • 54% Japan
  • 52% China

According to the study, organisations face a number of obstacles to achieving greater cloud maturity, including capabilities and skills gaps, lack of a well-defined strategy and roadmap, legacy siloed organizational structures, and Information Technology/Line of Business (IT/LOB) misalignment.

Cisco Business Cloud Advisor Adoption Report 
Cisco is helping customers translate the findings of this study into personalized analysis and guidance.

The Cisco Business Cloud Advisor Adoption Report allows organisations to complete a brief survey to determine their own cloud adoption level and associated business benefits relative to their industry peers—by industry, company size, and geography.

Customers can access the tool and additional information at www.cisco.com/go/bca

New cloud professional services
In addition, Cisco is launching a new set of Cloud Professional Services to help businesses navigate the multicloud maze and optimize their cloud environments. These services will help customers bridge the skill-set gaps they may be facing as they accelerate their digital transformation strategies and cloud native initiatives.
 
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