Cloud computing has matured in recent years and has become more than just a way to drive cost efficiencies or enable a mobile workforce. The technology originally offered a competitive edge to quick adopters, with 77% reporting that cloud provides them with a competitive advantage, but this benefit is falling as more and more businesses make the move. That doesn’t mean the benefits are lost though. The next phase of the cloud is one of transformation.
Moving to the cloud but leaving the rest of the organization unchanged is not the point. Simply implementing cloud services is not enough, because that really just means replacing existing IT functionality or IT roles. It’s not just about cloud delivery anymore. It’s about cloud consumption. Sure, by consolidating data centers or moving to a cloud environment, organizations will experience greater IT efficiency. But that won’t continue to grow unless transformation is added to the equation. True transformation is bigger than that. It requires businesses to truly make changes to their processes, models, strategies and organizational structures using the cloud. Already, 69% say the cloud has enabled them to significantly re-engineer a business process. This can be frightening, and might involve a level of risk, but organizations shouldn’t be reluctant.
To remain competitive, businesses need to focus on how they can leverage the cloud to enable digital transformation, change how they do business, and disrupt the market. (WSJ) They must align their resources and strategic decision making to respond to a constantly changing and increasingly digital competitive environment. As stated in the State of the Market: Enterprise Cloud 2016 report, “…we’ve seen cloud go from a newcomer to part of the established order.” Today, cloud computing and other technologies are shaping the economy and helping organizations succeed in their digital business journeys. Companies are able to leverage data to provide insight, improve alignment with customers and partners, innovate and develop new products and business models, shift to a global shared services model and improve time to market (KPMG Cloud Survey Report) – all in addition to the popular benefits of mobility and cost efficiency.
The cloud has even transformed the jobs of the CIO and IT personnel, turning them into leaders of the digital space rather than simply architects. IT now connects with every corner of an organization, and cooperation is essential.
And let’s talk about security. This topic used to be a sensitive one, and was one of the major barriers of cloud adoption.54% of organizations say they need to be sure their cloud service providers’ solutions meet their security and compliance requirements before making commitments (Market Wired) and cloud providers are stepping up to the plate. It turns out that fewer than 5% of companies have experienced a significant data breach that was directly attributable to a cloud-based service! (WSJ) Not only do cloud providers help manage security, but most companies in the cloud report that their cloud environment is as secure, if not more secure, than their previous traditional environment. That’s pretty impressive.
We’re at a huge turning point in the business world with the introduction of so many digital services. Companies have to be flexible and fluid so they can adapt to inevitable, constant market changes. This is why cloud is essential. Cloud has already helped many organizations address their basic IT needs, and now it’s taking the next step in helping to innovate and transform in order to meet today’s business demands.
Cloud computing plays a key role in business transformation, and organizations hoping to remain competitive in a digital environment need to start thinking about taking their cloud to the next level. We know not everyone is a cloud expert, and that’s why our team of experts work with organizations to help them tackle true business transformation.