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Cloud in the Boardroom

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Accenture Finds that Vast Majority of Companies are Embracing the Journey to the Cloud but Alignment to Business Strategy Lags

Accenture’s “Cloud in the Boardroom” study found that although there’s a significant uptick in cloud adoption at the enterprise level, companies are missing the full benefit of their cloud adoptions by not factoring their IT implementations into their overall business strategy.

Accenture conducted an online survey, fielded between January and February of 2016, of 1,879 C-level executives of companies across 15 industries in 13 countries. Some key findings include:
- More than 95 percent of respondents have a five-year cloud strategy already in place, however only 38 percent have aligned these plans with overarching business goals.
- Four of five executives reported that less than half of their business functions are currently operated in public cloud, but noted increasing intent on moving more of their operations to the cloud in the coming years.
- 89 percent of respondents agree that implementing cloud strategies is a competitive advantage which allows their companies to leverage innovation through agility.
- While half of respondents cite security as their biggest concern with the public model, more than 80 percent believe public cloud security is more robust and transparent than what they’re able to provide in-house.

“Our research confirms that enterprise clients are overwhelmingly recognizing the value of a Cloud First agenda—leveraging the cloud to bring applications, infrastructure and business processes together and be delivered as-a-Service—as a driver of digital innovation, and they are upfront about the guidance they need in order to move even faster on their journey to the cloud,” said Jack Sepple, senior managing director, Accenture Cloud and Accenture Operations group technology officer. “By taking steps to align their cloud and business strategies and to involve IT more directly in cloud decision-making, companies will be better positioned on their journey to the cloud as the as-a-Service economy matures.”

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  • Organisations are massively change fatigued having spent so much time. effort and money implementing the massive ERP solutions over the past years that they want to dial back to normal day-to-day business. The question is "Have they realised the full set of benefits associated with the ERP? The cloud allows them much more flexibility (not too mention the lower TCO) but can the CIO go back and ask the CEO and Board to embark on this "new" journey so soon? Having been there, I guess it's a rhetorical question...
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Cloud in the Boardroom

  1. 1. Accenture Survey: “Cloud in the Boardroom”
  2. 2. Copyright © 2016 Accenture. All rights reserved. 2 Accenture Finds that Vast Majority of Companies are Embracing the Journey to the Cloud but Alignment to Business Strategy Lags Accenture’s “Cloud in the Boardroom” study found that although there’s a significant uptick in cloud adoption at the enterprise level, companies are missing the full benefit of their cloud adoptions by not factoring their IT implementations into their overall business strategy. Accenture conducted an online survey, fielded between January and February of 2016, of 1,879 C-level executives of companies across 15 industries in 13 countries. Some key findings include: • More than 95 percent of respondents have a five-year cloud strategy already in place, however only 38 percent have aligned these plans with overarching business goals. • Four of five executives reported that less than half of their business functions are currently operated in public cloud, but noted increasing intent on moving more of their operations to the cloud in the coming years. • 89 percent of respondents agree that implementing cloud strategies is a competitive advantage which allows their companies to leverage innovation through agility. • While half of respondents cite security as their biggest concern with the public model, more than 80 percent believe public cloud security is more robust and transparent than what they’re able to provide in-house.
  3. 3. 3 Copyright © 2016 Accenture. All rights reserved. 3 “Our research confirms that enterprise clients are overwhelmingly recognizing the value of a Cloud First agenda—leveraging the cloud to bring applications, infrastructure and business processes together and be delivered as-a-Service—as a driver of digital innovation, and they are upfront about the guidance they need in order to move even faster on their journey to the cloud. By taking steps to align their cloud and business strategies and to involve IT more directly in cloud decision-making, companies will be better positioned on their journey to the cloud as the as-a-Service economy matures.” - Jack Sepple, senior managing director, Accenture Cloud and Accenture Operations group technology officer
  4. 4. Copyright © 2016 Accenture. All rights reserved. 4 While 95% of respondents report that their company has a five-year strategy for cloud adoption, only 38% have taken steps to integrate their cloud and business strategies. 41% 38% 20% 1% Our Cloud strategy influences our business strategy. Our Cloud strategy is a pivotal part of our business strategy. Our Cloud strategy is independent of our business strategy. We do not have a Cloud strategy.
  5. 5. 5 Copyright © 2016 Accenture. All rights reserved. Nearly 90% of respondents say that 50% or less of all business needs are supported by Xaas. Accordingly, 83% operate 50% or less of services in the public cloud. 12% 71% 15% 2% Less than 25% 25%-50% 51%-75% More than 75% What percentage of your service capabilities are public Cloud-based today? 4% 38% 45% 10% 2%1% Less than 15% 15%-30% 31%-50% 51%-75% More than 75% Don't know What percent of your enterprise business needs are supported by an Everything as a Service (XaaS)-based delivery model? 4
  6. 6. Copyright © 2016 Accenture. All rights reserved. 6 27% 26% 24% 22% Private (on premises) Hybrid (integration of private and public Cloud) Hosted private (off premises) Public 30% 27% 24% 20% Hybrid (integration of private and public Cloud) Private (on premises) Hosted private (off premises) Public Considering Platform as a Service (e.g., Microsoft Azure, Force.com, Cloud Foundry), which of these does your organization use today? Considering Platform as a Service, which of these will your organization use in three years? Survey results indicate that Hybrid PaaS usage will jump from 26% to 30% by 2019.
  7. 7. Copyright © 2016 Accenture. All rights reserved. 7 When asked whether they believe that cloud helps their business stay at the forefront of innovative tech adoption, 89% of survey respondents agreed, with 41% indicating that they strongly agreed. 35% 35% 41% 43% 34% 39% 39% 31% 48% 48% 48% 47% 47% 49% 49% 49% 16% 15% 10% 9% 16% 12% 12% 15% 1% 2% 2% 1% 1% 4% Cloud will foster major innovations in our business that were otherwise not possible. Cloud-based new entrants are challenging our traditional business and industry models. Cloud helps our business stay at the forefront of innovative technology adoption. Cloud is enabling agility and scalability of our business. Public Cloud security model is more robust and transparent than what we can self-provide. Our governance model is prepared and ready for Cloud adoption. My people are prepared and ready for Cloud adoption. Our regulatory concerns around Cloud have been eliminated. Strongly agree Agree Neither agree nor disagree Disagree Strongly disagree Please indicate your agreement with each of the following statements:
  8. 8. Copyright © 2016 Accenture. All rights reserved. 8 Survey results show a dip in anticipated public PaaS and IaaS usage over the next three years, from 22% to 20%. 27% 26% 24% 22% Private (on premises) Hybrid (integration of private and public Cloud) Hosted private (off premises) Public 30% 27% 24% 20% Hybrid (integration of private and public Cloud) Private (on premises) Hosted private (off premises) Public Considering Platform as a Service (e.g., Microsoft Azure, Force.com, Cloud Foundry), which of these does your organization use today? Considering Platform as a Service, which of these will your organization use in 3 years?
  9. 9. Copyright © 2016 Accenture. All rights reserved. 9 51% cite “security concerns” as their biggest issue with public cloud, yet 81% agree that public cloud security is more robust and transparent than what they’re able to provide independently. Which of the following are concerns when using public Cloud? 51% 44% 44% 43% 40% 37% 37% Perceived security in the cloud Regulatory concerns Inadequate knowledge of service provider options and their differentiators Lack of control and transparency Location of data Lack of suitable proof points in my industry Lack of awareness and understanding of the cloud 35% 35% 41% 43% 34% 39% 39% 31% 48% 48% 48% 47% 47% 49% 49% 49% 16% 15% 10% 9% 16% 12% 12% 15% 1% 2% 2% 1% 1% 4% Cloud will foster major innovations in our business that were otherwise not possible. Cloud-based new entrants are challenging our traditional business and industry models. Cloud helps our business stay at the forefront of innovative technology adoption. Cloud is enabling agility and scalability of our business. Public Cloud security model is more robust and transparent than what we can self-provide. Our governance model is prepared and ready for Cloud adoption. My people are prepared and ready for Cloud adoption. Our regulatory concerns around Cloud have been eliminated. Strongly agree Agree Neither agree nor disagree Disagree Strongly disagree Please indicate your agreement with each of the following statements:
  10. 10. Copyright © 2016 Accenture. All rights reserved. 10 80% agree that their regulatory concerns around cloud have been eliminated. 35% 35% 41% 43% 34% 39% 39% 31% 48% 48% 48% 47% 47% 49% 49% 49% 16% 15% 10% 9% 16% 12% 12% 15% 1% 2% 2% 1% 1% 4% Cloud will foster major innovations in our business that were otherwise not possible. Cloud-based new entrants are challenging our traditional business and industry models. Cloud helps our business stay at the forefront of innovative technology adoption. Cloud is enabling agility and scalability of our business. Public Cloud security model is more robust and transparent than what we can self-provide. Our governance model is prepared and ready for Cloud adoption. My people are prepared and ready for Cloud adoption. Our regulatory concerns around Cloud have been eliminated. Strongly agree Agree Neither agree nor disagree Disagree Strongly disagree
  11. 11. Copyright © 2016 Accenture. All rights reserved. 11 78% of respondents agree that their IT organization may lack the skills necessary to be involved in XaaS purchases, despite an overwhelming consensus – 88% - that IT organizations should be involved in these transactions. 35% 39% 35% 39% 35% 43% 49% 43% 50% 49% 21% 11% 15% 10% 14% 2% 6% 1% 2% 1% Our IT organization provides valuable business relevance that third-parties cannot provide. Our IT organization protects the security of our information and systems, and as a result needs to be involved in all XaaS purchases. Our IT organization is juggling priorities between old and new and may lack the necessary skill sets for XaaS. Our IT organization is very proactive in exploring and vetting new solutions including XaaS. Our IT organization is shifting from a traditional service provider to more of a Service Broker and offering XaaS solutions. Strongly agree Agree Neither agree nor disagree Disagree Strongly disagree Please indicate your agreement with each of the following statements:
  12. 12. Copyright © 2016 Accenture. All rights reserved. 12 92% of organizations have or are planning to establish a formal IT service broker role to help facilitate XaaS purchases and better integrate IT organizations. 48% 44% 5% 3% We are planning to have formal IT Service Broker roles, but they are not yet established. Yes, our IT organization has formal IT Service Broker roles. No, we do not have formal IT Service Broker roles, nor do we plan to have them. We are still assessing industry trends and movements. Do not know Has a formal IT Service Broker role been created in your IT organization to source XaaS?
  13. 13. Copyright © 2016 Accenture. All rights reserved. 13 Despite the current skills gap, few respondents – only one in five – believe that cloud will shift more than 50% of their workforce. 11% 68% 18% 3% Less than 25% 25-50% 51%-75% More than 75% How large do you expect the workforce shift to be as a result of moving to a cloud model?

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