Cloud adoption going mainstream, yet few organisations maximising value, says Cisco

Cloud adoption going mainstream, yet few organisations maximising value, says Cisco

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 fueled 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 $3 million in additional revenues and $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 percent 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.

“Our customers are dealing with increasingly diverse and complex environments as their hybrid and multi-cloud deployments grow. These customers want the freedom to choose the best environments and consumption models for their traditional and cloud native applications, which all drive a variety of business benefits. Yet, as this research bears out, while many customers are embracing cloud, most are still in the early stages of their journey to an optimised cloud model. That is where our new and enhanced Cisco Professional Services can help. Working with our partners, our joint services offerings are designed to help customers achieve a highly secure and optimised cloud environment specific to their unique business needs,” said Mike Weston, Vice President, Cisco Middle East.

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.

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 organisational structures, and Information Technology/Line of Business (IT/LOB) misalignment.




Click below to share this article

Browse our latest issue

Intelligent CIO Middle East

View Magazine Archive