As organizations continue Moving to the cloudManagement consulting firm PricewaterhouseCoopers reports that some companies benefit more than others 2023 Cloud Business Survey.
The report found that 78% of corporate leaders surveyed by PwC stated that the cloud has been embraced in most or all aspects of their business. However, simply adopting the cloud is not enough for an organization to be what PwC refers to as a “cloud-powered” company. Only 10% of organizations surveyed by PwC fall into the cloud services category. So-called cloud-powered businesses have seen more benefits, including improved decision-making, productivity, cyber posture, and cost savings.
PricewaterhouseCoopers research found that there are four key characteristics that define a cloud-enabled enterprise:
- A comprehensive and proven approach to the cloud
- C-suite collaboration from the start
- Official data, analytics, and AI strategy
- Focus on trust and controls
“Cloud-enabled organizations are those that reinvent their business through the cloud, experience lower barriers to accessing their value, and expect revenue growth of 15% or more despite the current business environment,” Daniel Phaneuf, Partner, Cloud & Digital Strategy at PwC , Tell ITPro today.
PwC 2023 Cloud Business Survey details cost management technologies
Among the findings in the report is an analysis of how cloud-based businesses can better manage costs and optimize cloud resources (sometimes referred to as FinOps) better than others.
Related: Beyond Rights: When it comes to cloud cost optimization, think big
Phaneuf said the report found that more than 30% of cloud spending is wasted. In contrast, companies running in the cloud have immediate access to performance data, and they use tools specifically designed to continuously improve their performance, spending, and resource usage.
The survey also revealed that cloud companies treat transformation like a team sport, and this team approach makes finding and optimizing cloud resources a much easier task, she said.
“IT is no longer looking for shadow spending, but the entire organization is incentivized to manage the cloud more efficiently,” said Phaneuf. Finally, cloud-powered companies are usually able to offer chargeback services from the get-go, whereas most companies only offer re-emergence At best, it leaves their business users wondering where their spending will go. “
Challenges on the road to being a cloud-powered organization
For organizations looking to become cloud-enabled, there are some challenges.
“The biggest barrier that non-cloud companies face is consolidating their leadership behind the cloud,” said Phaneuf.
Related: How the cloud has made computing harder, not easier
She pointed out that every leader usually has multiple reasons for not being able to fully embrace the cloud, and this is difficult to overcome, especially when these reasons relate to risks or loss of control. In these non-cloud companies, divided leaders are also taking fragmented approaches to data, which Phanouf said PwC sees as a major barrier to the cloud. A PwC survey found that nearly 90% of cloud-based companies have an enterprise data strategy in place.
While the ideal scenario is for the organization to be fully cloud-backed, Phaneuf said there are still many benefits to being partially cloud-backed, including:
- Better controls
- Improve visibility into cost, performance and resources
- More driving alignment
In the future, Phanouf said, PwC expects more companies to be cloud-enabled in the coming years and will lead this transformation by embracing cloud technology. Industry and sector clouds.
“Finally, if economic uncertainty continues to increase, we would expect companies to double down on their cloud investments as a way to increase their technology investments,” she said.
About the authorSean Michael Kerner He is an IT consultant, technology enthusiast and reformer. He consults with industry and media organizations on technology issues.