How do organizations in Europe view their cloud investments? Are they realizing the true potential of cloud to drive innovation at scale? Learn these answers and other findings in this brief.

1. June 2023
Connected future:
How cloud drives
business innovation
TCS Global Cloud Study:
Continental Europe

2. 2
Call to action
The TCS Global Cloud Study surveyed approximately 1000 senior executives in multiple sectors across Asia, UK&I, Continental Europe
and North America, more than half with revenue over $5 billion.
The survey results from the Continental Europe region included 256 survey respondents from Germany/Austria, Switzerland, France,
Spain, Luxembourg, Belgium, Netherlands, Norway, Denmark, Sweden and Finland.
We recommend the following actions
Take an integrated approach to
decision-making that makes cloud-
enabled innovation the
responsibility of all. Beyond the IT
department, find application areas
in the cloud through collaboration
with individual business units.
Improve transparency and understanding of
cost factors for cloud initiatives. Connect
business and IT requirements for cloud –
including cost – to high-level objectives, with
a focus on long-term gains.
Identify and overcome shortfalls in
capabilities that could impact growth and
transformation. Multi-cloud approaches will
likely enhance the need for broader skills
requirements. In addition, gaps in data
governance and security could prove serious
impediments to newer technologies.
Aligning business &
IT stakeholders.
Developing a strategy for
cost control.
Achieving and
maintaining critical skills.

3. The current state of
cloud-enabled innovation

4. 4
Innovation is entrenched as part of cloud’s value for the majority
Cloud &
innovation
Have established a culture of innovation from
leadership to board level to employees
63%
54% Have faith in cloud’s potential as a
catalyst for innovation
Innovation with a purpose
Organizations ranked “new ways of
aligning purpose with business
strategies (e.g., sustainability
efforts)” as one of the top goals
for cloud-enabled innovation
Q. To what extent does your organization possess the following skills and capabilities for cloud environments and applications? :- Established
culture of digital innovation, from leadership to board level to employees; Q. Percentage of respondents that “disagree or significantly
disagree” with the following statements. :- We have lost faith in cloud's potential for innovation. n=256

5. 5
Right-sizing cloud investments tests the majority of respondents
Just over half of European respondents say they invested
appropriately in cloud
23% say they have changed
or are changing their cloud
strategy due to insufficient ROI
52%
27%
21%
Continental Europe
Invested appropriately
Over-invested
Under-invested
63% Say cloud is a long-
term investment and they
intend to stay the course
Q. Percentage of respondents selecting “agree” or “significantly agree” that “our leadership recognizes that cloud is a long-term investment and intends to stay the course” and “we have changed or are
changing their cloud strategy due to insufficient ROI” ; Thinking back on the past 3 years, how would you describe your company's cloud investments n=256

6. Hyperconnected
ecosystems remain elusive
Stakeholders
In a free enterprise, the community is not just
another stakeholder in business, but is in fact
the very purpose of its existence.
“ “
-Jamsetji Tata

7. 7
Everyone is a stakeholder, but not all stakeholders are connected
Cloud has allowed organizations to overcome previous limitations of scale to embrace interconnectedness with partners, customers and
employees on levels otherwise unknown.
But they’re not there yet: More than half of respondents surveyed are in the initial stages of ecosystem maturity.
Percentage of respondents at each stage of digital ecosystems maturity
No plans to participate in ecosystems
Initial stage: Assessing requirements and
planning participation in ecosystems
Early stage: Implementing industry,
customer or partner ecosystems
Middle stage: Initial participation in
industry, customer or partner ecosystems
Late stage: Firmly entrenched and participating
in industry, customer and partner ecosystems
Q5. Please rank your digital ecosystem maturity level. In this survey, a digital ecosystem is defined as a complex network of stakeholders that connect online and interacts digitally
in ways that create value for all. (n=256)
15%
44%
23%
9%
9%

8. 8
Who should own cloud?
More than 2/3 of cloud transformations are still led by IT only or mostly IT. The largest proportion of respondents (39%) ideally
envision an even split between business & IT leaders.
Business (including CEO, business unit heads)
Q. Which department currently has the majority of the responsibility of the decision-making and ownership for cloud transformation in your organization?
Q. Which department should have the majority of the responsibility and ownership to manage cloud transformations in your organization?
Do respondents agree with the
current division of ownership?
8%
Roles who currently have the
majority of the decision-making
and ownership of cloud
transformation
6%
IT only (including CIO, senior IT leaders) 22% 20%
Mostly IT, some business 41% 32%
50%-50% even split between business & IT leaders 19% 39%
Mostly business, some IT 10% 4%
Roles that should have the majority
of the decision-making and
ownership of cloud transformation

9. Stronger data governance sets
the stage for greater access,
investment and reporting
Insights
The best vision is insight.
“
“
- Malcolm Forbes

10. 10
Balancing data risks and opportunities: Stronger data
governance sets the stage
Ecosystems and data are coming together in new and unexpected ways. There’s a
growing recognition that a free flow of data is required to foster innovations
among the multi-stakeholders who comprise the ecosystem.
Cloud is the unifying digital fabric that makes this possible – it democratizes access
to data and powers the technologies to bring the connected future to life.
Q. To what extent does your organization possess the following skills and capabilities for cloud environments and applications? :- Data governance and compliance
27%
Just 27%
say they excel in data governance and
experience no issues
What’s needed? Stronger data governance,
so that organizations can safely and
strategically usher in a new era of data
democracy and sharing.

11. 11
Accelerated investments in data-intensive technologies
Percentage who increased investments in data-intensive technologies in the past 12 -24 months compared to intended investments in the
next 12-24 months n=256.
Investments are also heavily slanted toward AI/ML technologies, unsurprising given the backdrop of renewed urgency.
Artificial Intelligence
(AI)/ Machine
Learning
Data Community of
Practice (CoP)
Scenario modelling Virtual hyper-
automation
Physical autonomous
systems (e.g., drones)
68% 72% 75% 78%
42% 41% 38% 39% 38% 43%
Next 12-24 months
Past 12-24 months

12. 12
Slow but steady progress
Percentage who increased investments in data-intensive technologies in the past 12 -24 months compared to intended investments in the
next 12-24 months n=256
There is enormous transformative potential for a connected future through 5G, edge and IoT technologies. Organizations are
investing in these technologies, but at a more measured pace than AI/ML. Investments in connected cars/fleets, however, are
lagging further behind.
Digital twins/threads Connected cars/fleets Edge/IoT computing 5G networks
17% 19% 23% 24%
39% 43%
49% 49%
Next 12-24 months
Past 12-24 months

13. 13
An investment focus on the here and now
Percentage who increased investments in data-intensive technologies in the past 12 -24 months compared to intended investments in the
next 12-24 months n=256
There is remarkably little investment in augmented
reality and virtual reality in support of metaverse
participation. Organizations may still consider
metaverse more in the futuristic realm, along with
quantum computing.
Augmented
reality/virtual reality
for metaverse
participation
Quantum computing
18%
23%
14% 14%
Next 12-24 months
Past 12-24 months

14. 14
Cloud-enabled tracking and reporting for sustainability
of respondents say cloud technologies
have helped their organizations achieve
sustainability goals
58%
36%
report “difficulty understanding
carbon footprint impact of cloud
service provider”
Across all industries, there is a collective
imperative to build sustainable,
inclusive futures. Respondents see
cloud as an important – and thus far
successful – part of that vision.
Transparency is key; enterprises are
increasingly using cloud to track critical
data indicators of sustainability and
demand the same visibility into their
cloud service providers.

15. Industry cloud
adoption accelerates
Expertise
Sustaining innovation is the
lifeblood of any enterprise.
“ “
- Geoffrey Moore

16. 16
Few are fully cloud mature but even fewer are still in the early stages
Despite the accelerated pace of investment and adoption throughout the past few years, only 16% of respondents say they are fully
cloud mature.
Fully achieved cloud maturity
Achieved most cloud-based goals
for critical apps & workloads
Achieved some cloud-based goals
for critical apps & workloads
Early stages: Still struggling with
digital core
Q. How would you describe your company’s cloud maturity as it relates to your critical apps and workloads? n=256
16%
34%
40%
10%

17. 17
Multi-cloud environments are the norm
After a period of rapid change, multi-cloud environments are the norm, adding greater complexity.
Q. What best describes your cloud deployment model? Choose the one that most closely resembles your current scenario.
Cloud deployment model
Hybrid cloud (a mix of
public and private)
64%
Public cloud only
35%
Private cloud only
1%

18. 18
Skills are not keeping up with the complexity
Given the complexity of managing multiple clouds and tools, skills are not where they should be for critical areas.
Q. To what extent does your organization possess the following skills and capabilities for cloud environments and applications?
Proportion of respondents who report proficiency challenges
with skills and experience in the following areas
56%
59%
62%
62%
68%
Enterprise-wide cloud strategy
based on business objectives
Established cloud ROI metrics
Financial operations &
management (FinOps)
Development & operations
management (DevOps)
Agile practices & methodologies

19. 19
Q. Proportion of all respondents saying that the following are the biggest obstacles to cloud-enabled innovation; Q. To what extent does your organization possess the following skills
and capabilities for cloud environments and applications? :- Security (apps, data, etc) n=256
Cloud security is a consideration, but not an obstacle
Just 25% of respondents reported that
security concerns are the biggest obstacle to
cloud-enabled innovation
30% Say they excel in cloud security and
experience no issues

20. 20
Q. How often do you need to customize your ERP system to accommodate new functionality or business requirements?
Have legacy enterprise apps reached the tipping point?
42%
24%
29%
5%
Rarely (1-2 times/year)
Sometimes (3-4 times/year with quarterly rollouts)
Often (weekly or monthly)
Never
Cloud-native ERP
% who increased investments in cloud-native ERP in the past 12 -24 months
compared to intended investments in the next 12-24 months
39% 43%
Given that many respondents say their core ERP systems require frequent customizations, it’s no surprise nearly half of respondents say
they either already have or plan to increase investments in cloud-native ERP technologies.
Past 12-24 months Next 12-24 months

21. 21
Q. Have you considered or are you considering adopting industry cloud solutions or capabilities? In this survey, an industry cloud is defined as a vertical cloud environment heavily
customized for a particular industry. n=256
Have already adopted industry-specific cloud solutions
or capabilities
A fast path to expertise
Industry clouds are rapidly emerging as a fast path to acquiring expertise and capabilities. A full 37% of respondents surveyed are
assessing requirements and another 39% are either currently adopting them or have already done so.
37%
22%
17%
25%
Currently adopting industry-specific cloud solutions
or capabilities
Assessing requirements and planning implementation
of industry-specific cloud solutions or capabilities
No plans to adopt industry cloud

22. 22
Demographics – Role and Revenue
Revenue representation
$1bn to $4.99bn $5bn to $9.99bn $10bn to $14.99bn
$20bn+ $15bn to $19.99bn
Role representation
SVP/VP CXO
Senior Director BU Head

23. 23
Demographics – Country
Country representation by count
Germany
/Austria
Switzerland
France
50
Netherlands
Denmark
Spain
Luxembourg
Belgium
Norway
Sweden
Finland
50
13
11
12
5
9
12
9
40
45

24. 24
Demographics – Industry
Industry representation by percentage (n=256)
Technology
Manufacturing
Utilities
Transportation
and logistics
Accommodation
& food services
Healthcare
Energy and resources (oil and gas mining)
Lifesciences (pharma, devices)
Banks &
financial services
Insurance (Property, casualty,
life, re-insurance)
Consumer packaged
goods (CPG)
Communications, media &
information services
Retail

25. Connected Future: How Cloud
Drives Business Innovation
TCS Global Cloud Study:
Continental Europe
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