C-Suite Taking More Realistic Approach To Cloud

by CXOtoday News Desk    Jun 10, 2015

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Nearly 70 percent of enterprises expect to make moderate to heavy cloud investments over the next three years - as they migrate core business functions to the cloud, says a new study.

The SAP study published in Forbes also reveals that 44 percent of enterprises are relying on cloud computing to launch new business models in 2015, predicting this will increase to 55 percent by 2018.

According to the study nearly one-third of CXOs are using cloud computing to streamline their supply chains this year. However, they predict this figure will increase to 56 percent in three years.

Nearly two-thirds of executives said they use cloud-based applications and platforms to better manage and analyze data today, reflecting the increasing importance of analytics and big data in business.

On the whole, the study found many C- level executives are taking a more pragmatic, realistic view of what cloud technologies can contribute.

“Enterprises are moving beyond the hype of cloud computing, putting in the hard work of launching new business models while driving top-line revenue growth,” it said.

Key take-aways from the study include the following:

- Employee collaboration, supply chain and top line growth are the three areas enterprises expect cloud computing to impact most in three years. Other areas include increased agility and responsiveness to customers. 

- Developing new products & services (61%), new lines of business (51%) and entering new markets (40%) are three key areas cloud computing is transforming enterprises.  With a 35% increase, developing new products and services is the most dominant strategy enterprises are relying on to grow their businesses. See the comparison below for further details.

- Over half of the enterprises predict their use of cloud computing will increase top-line revenue growth in three years. 67% see the cloud changing skill sets and transforming the role of HR.

- Enterprise cloud security strategies are maturing rapidly. From 2012 to 2014, strategies for ensuring the security of API and interfaces increased 24%, from 20% to 44%. Additional concerns that increased include virus attacks (up 19%), and identity theft (up 16%).

- 67% of enterprises say that marketing, purchasing, and supply chain are somewhat and mostly cloud-based now. Cloud-based adoption has reached an inflection point in enterprises, with functional areas having the largest percentage of workloads running on cloud-based apps. Enterprise senior executives see the potential to improve innovation, R&D, and time-to-market via greater collaboration using cloud technologies.