How crucial is cloud as a catalyst for innovation for organizations in North America? Are investments in line with business objectives? To what extent is cloud fueling artificial intelligence? Learn these answers and other findings in this brief.

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

2. 2
Call to action
The TCS Global Cloud Study surveyed approximately 1000 senior executives in multiple sectors across Asia, Europe and North America,
more than half with revenue over $5 billion. The survey results from the North American region included 362 survey respondents from
across the US, Mexico and Canada.
We recommend the following actions
Ensure all responsibility and
decision-making for cloud-enabled
innovation rest with both IT and
business stakeholders. Connect
business and IT requirements for
cloud – and the stakeholders of
those – to high-level objectives, with
a focus on long-term gains.
Cloud technology can fuel the next level of
edge computing, AI and the Internet of
Things (IoT) to harness the power of these
modern technologies for business innovation.
Cloud skills and experience fall short in
critical areas, and overcoming these
shortfalls will require a range of strategies.
Industry clouds, with baked-in subject matter
expertise and best practices, are rapidly
becoming one such strategy.
Aligning business &
IT stakeholders.
Continued investing in data-
intensive technologies.
Acquiring greater
competencies.

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 successfully established a culture of
innovation from leadership to board level to
employees
69%
68%
Say cloud is crucial to their organization’s
future 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 3 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 “agree or significantly agree”
with the following statements. :- Cloud is crucial to our organization's future as a catalyst for innovation.

5. 5
Q. Percentage of respondents selecting “agree” or “significantly agree” that “cloud implementations have been more challenging or frustrating technically than expected”; they feel
“increasing pressure and scrutiny to justify investment decisions”; “they have changed or are changing their cloud strategy due to insufficient ROI” n=362
Implementation and ROI challenges persist
32% say cloud
implementations have been
more challenging or frustrating
technically than expected
27% say they feel increasing
pressure and scrutiny to justify
investment decisions
27% say they have changed
or are changing their cloud
strategy due to insufficient ROI

6. 6
Q. Percentage of respondents selecting “agree” or “significantly agree” that “cloud is a long-term investment, and they intend to stay the course"; Q. "Thinking back on the past three
years, how would you describe your company's cloud investments?"” n=362
Right-sizing cloud investments tests the majority of respondents
Just over half of NA respondents say they invested
appropriately in cloud
51%
40%
9%
NA
Invested appropriately
Over-invested
Under-invested
78% Say cloud is a long-
term investment and they
intend to stay the course

7. 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

8. 8
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
Q. 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=362)
17%
46%
17%
12%
9%

9. 9
Who should own cloud?
More than 2/3 of cloud transformations are still led by IT only or mostly IT. But when asked about who does and who should have the
responsibility for cloud transformations, only “evenly split between business and IT” gained adherents.
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?; 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?
7% 8%
IT only (including CIO, senior IT leaders) 28% 22%
Mostly IT, some business 41% 34%
50%-50% even split between business & IT leaders 19% 33%
Mostly business, some IT 6% 4%
Percentage of respondents that say
the following roles currently have
the majority of the decision-making
and ownership of cloud
transformation
Percentage of respondents that say
the following roles should have the
majority of the decision-making
and ownership of cloud
transformation

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

11. 11
Balancing data risks and opportunities: 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
44%
44%
say they excel in data governance and
experience no issues
Many respondents say they’re performing
strongly on data governance. Having put in
the work, organizations can safely and
strategically usher in a new era of data
democracy and sharing.

12. 12
Accelerated investments in data-intensive technologies
Percent who increased investments in data-intensive technologies in the past 12 to 24 months compared to intended investments in the
next 12 to 24 months (n=362)
Investments are heavily slanted toward AI/ML technologies, unsurprising given the backdrop of renewed urgency in generative
AI. A more modest number – around half – are investing in scenario modeling, virtual hyper-automation and physical
autonomous systems.
Artificial Intelligence
(AI)/ Machine
Learning
Data Community of
Practice (CoP)
Scenario modelling Virtual hyper-
automation
Physical autonomous
systems (e.g., drones)
76% 80%
89% 91%
59% 61%
46% 50%
41% 42%
Next 12-24 months
Past 12-24 months

13. 13
Slow but steady progress
Percent who increased investments in data-intensive technologies in the past 12 to 24 months compared to intended investments in the
next 12 to 24 months (n=362)
There is enormous transformative potential for a connected future through 5G, edge and IoT technologies. Organizations are
investing in these technologies as well as connected cars/fleets and digital twins/threads, but at a more measured pace than AI/ML.
Digital twins/threads Connected cars/fleets Edge/IoT computing 5G networks
28% 32% 36% 37%
46% 49% 54% 55%
Next 12-24 months
Past 12-24 months

14. 14
An investment focus on the here and now
Percent who increased investments in data-intensive
technologies in the past 12 to 24 months compared to
intended investments in the next 12 to 24 months
(n=362)
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
21% 25%
17% 17%
Next 12-24 months
Past 12-24 months

15. 15
Cloud-enabled tracking and reporting for sustainability
of respondents say cloud technologies
have helped their organizations achieve
sustainability goals
73%
49%
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.

16. Increasing complexity
accelerates industry
cloud adoption
Expertise
Sustaining innovation is the
lifeblood of any enterprise.
“ “
- Geoffrey Moore

17. 17
The journey to cloud maturity
Despite the accelerated pace of investment and adoption throughout the past few years, only 35% 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=362
35%
36%
24%
5%

18. 18
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)
78%
Public cloud only
21%
Private cloud only
1%

19. 19
Q. Proportion of all respondents saying that the following are the biggest obstacles to cloud-enabled innovation n=362; To what extent does your organization possess the following
skills and capabilities for cloud environments and applications? :- Security (apps, data, etc.)
Cloud security is a consideration, but not an obstacle
Just 16% of respondents reported that
security concerns are the biggest obstacle to
cloud-enabled innovation
49% Say they excel in cloud security and
experience no issues

20. 20
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?
36%
Proportion of respondents who report proficiency challenges
with skills and experience in the following areas
36%
34%
36%
40%
Enterprise-wide cloud strategy
based on business objectives
Established cloud ROI metrics
Financial operations &
management (FinOps)
Development & operations
management (DevOps)
Agile practices & methodologies
Many organizations lack
full proficiency in critical
cloud skills, including both
FinOps and DevOps, ROI
metrics and agile practices.

21. 21
Q. How often do you need to customize your ERP system to accommodate new functionality or business requirements?
Closing the enterprise application gaps
46%
13%
40%
1%
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
49% 52%
Given that many respondents say their core systems require frequent customizations, it’s no surprise half of respondents say they either
already have or plan to increase investments in modernized, more composable enterprise application technologies.
Past 12-24 months Next 12-24 months

22. 22
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=362
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 34% of organizations surveyed are
assessing requirements and another third are either currently adopting them or have already done so.
39%
23%
11%
27%
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

23. 23
Demographics – Geo, role and revenue
North America representation by %
Revenue representation
$1bn to $4.99bn $5bn to $9.99bn $10bn to $14.99bn
$15bn to $19.99bn $20bn+
Role representation
CXO SVP/VP
Senior Director BU Head
Canada
30%
58%
USA
Mexico
13%

24. 24
Demographics - Industry
Industry representation
Technology
Manufacturing
Utilities
Transportation
and logistics
Accommodation
& food services
Healthcare
Energy & resources
Life sciences
Banks &
financial services
Insurance
Consumer products
goods (CPG)
Communications, media &
information services
Retail

25. Connected Future: How Cloud
Drives Business Innovation
TCS Global Cloud Study:
North America
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