Two-thirds of enterprises disappointed by cloud migration journey: Accenture

Two-thirds of large enterprises are not realising 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.

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 cited achieving some level of their desired cloud outcomes — overall satisfaction levels exceed 90 per cent 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 per cent), speed (36 per cent), business enablement (35 per cent) and service levels (34 per cent).

“Like most new technologies, capturing the intended benefits of cloud takes time; there is a learning curve influenced by many variables and barriers,” 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 realising 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 per cent of respondents, followed by “complexity of business and organisational change” (55 per cent), “legacy infrastructure and/or application sprawl” (43 per cent) and “lack of cloud skills with the organisation” (42 per cent).

Companies employing private clouds tend to lag their counterparts employing public cloud or hybrid models when it comes to fully achieving expected outcomes (28 per cent vs. 42 per cent and 38 per cent 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 per cent) report having captured their cost saving goals, yet only 28 per cent 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.

This post was last modified on June 3, 2019, 1:43 pm

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