IT Brief Australia logo
Technology news for Australia's largest enterprises
Partner content
Story image

Cloud adoption: The barriers and benefits in 2020

By Nick Forrester
Thu 10 Dec 2020
FYI, this story is more than a year old

In recent years, cloud initiatives have gradually made their way towards the top of the priority list for organisations looking to improve efficiency and innovation in the wake of the rapid evolution of the global economy. 

Then COVID-19 struck, and digital transformation became all but compulsory. Companies that were digital laggards quickly learned that they wouldn’t survive long without adopting a ‘cloud first’ attitude, and organisations across the globe drastically accelerated their cloud migration. 

In 2020, cloud went from being a nice-to-have to a mandate.

But while it became all but a necessity, a new report from Accenture reveals that even after years of investment into cloud initiatives, many organisations are not seeing the results they expected, and full value realisation remains a stubborn challenge.

For example, Accenture’s survey in 2018 found that only 35% of companies had ‘fully achieved’ their expected outcomes from cloud. The results from this year are not much better:

Full achievement of outcomes has not significantly increased, basically holding steady at 37% globally. Only 35% of respondents in APAC reported fully achieving their cloud outcomes.
Globally, the percentage that are very satisfied with the cloud outcomes achieved to date barely changed since the last survey: 45% in 2020 (vs 44% in 2018). APAC marginally trails the global 2020 satisfaction percentages at 43%.
In APAC, only 27% are entirely confident that their organisation’s cloud migration initiatives will deliver the expected value at the expected time.

This obviously doesn’t paint a rosy picture for investment into cloud initiatives. So what are the variables involved in achieving outcomes after investing?

High adopters are doing better

While not practicably possible for many smaller businesses, the data from Accenture’s survey suggests that cloud benefits are realised at a higher rate for companies that invest more heavily into their cloud migration.

On average, 41% of high adopters reported fully achieving their expected cloud benefits as compared to 34% of moderate adopters and 31% of low adopters (Figure 1).

In APAC, high adopters outperformed low adopters most significantly in the areas of resilience/business continuity (44% vs 16%), cost (44% vs 28%) and business enablement (44% vs 32%). Interestingly, however, low adopters did outperform high and moderate adopters in speed-to-market and service levels.

Figure 1. Percentage of ‘fully achieved’ benefits based on the degree of cloud adoption in APAC

Globally, more than half of the respondents (53%) reported using a multi-cloud/hybrid cloud approach for their existing deployments. The use of multiple public cloud service providers is also pegged at 67% globally. In APAC, almost half (45%) of the respondents are using both public and private cloud services as compared to 27% using only public or private cloud (Figure 2).

Figure 2: Cloud adoption by type of cloud service

The usage of managed cloud services was also an indicator of success in achieving cloud results. The study found that 29% of high adopters use cloud managed services ‘to a great degree;’ nearly three times more than moderate adopters (10%) and ten times more than low adopters (3%). 

In the APAC region, those that used third-party managed services ‘to a great degree’ are more likely to report achieving the full benefits of their cloud initiatives (48%) than those that do not (35%).

Figure 3: Percentage using third party cloud-managed services

Understanding barriers to cloud adoption

While these statistics may paint a bleak picture for those who are not able to invest in cloud migration heavily, that does not mean they are incapable of achieving more value. To do so, it’s essential first to identify the specific obstacles standing in their way.

As part of the survey, business and IT leaders in APAC were asked to identify and rank the barriers to their efforts to drive their cloud agenda and achieve their goals. 

Misalignment between IT and business is most frequently considered among the top three barriers by 45% of the respondents, along with legacy infrastructure and application sprawl (45%). IT and business misalignment is also the most frequently mentioned top barrier at 18%.

‘Data sovereignty concerns/regulations’ was the next most frequently cited barrier at 43%.

Figure 4: Top barriers to achieving expected cloud outcomes in APAC

Low cloud adopters were most concerned about lack of skills, data sovereignty matters and infrastructure becoming a bottleneck. 

Moderate adopters’ top concerns included legacy infrastructure/application sprawl, data sovereignty concerns and misalignment between IT and business. In contrast, high adopters ranked misalignment between IT and the business and security as their top issues.

Table 1: Top 3 barriers to achieving expected cloud outcomes by cloud adoption levels in APAC

Achieving expectations

After years of studying cloud adoption, Accenture data scientists have found that a willingness to shift the ways in which companies work is just as important as technology when it comes to achieving goals with cloud initiatives.

Organisations must be willing to pivot to new operating models and developing new roles and skills. 

Four key areas companies should address include:

Business value focus

Develop an optimal cloud strategy anchored to comprehensive economic business cases to identify revenue upside and cost efficiency opportunities while aligning goals and putting company leaders on the same page. 

Workforce and culture change management

Implement talent readiness programs and new operating models to evolve culture, transforming how people work and what work they do to meet rapidly changing needs.

Data and AI

Unlock industry- and function-specific data insights and intelligence trapped in legacy systems with the power of cloud data models.

Partnering for success

Leverage the skills and experience of the appropriate partners to augment your own capabilities. Cloud managed services is often an option for companies looking to access the right skills while maintaining cost efficiency.   

For more information on how you can maximise the value of cloud, read Accenture's whitepaper: ‘Cloud is the urgent business imperative: how to maximise its value’.

Related stories
Top stories
Story image
Artificial Intelligence
Frost & Sullivan recognises Genesys as leader in new reports
Frost & Sullivan has recognised Genesys as a leader in the cloud contact centre market for its robust cloud and digital capabilities.
Story image
Manhattan Associates
Shortening the click-to-customer cycle through smart technologies
Speed of delivery without accuracy is a dealbreaker for consumers. How can retailers operating in an omnichannel environment overcome the challenge of click-to-customer cycle times.
Story image
Vectra AI
Vectra’s inaugural Partner of the Year Awards revealed
APAC companies Baidam, Firmus, ShellSoft and Macnica have been recognised in Vectra AI's inaugural Partner of the Year Awards.
Story image
Cybersecurity prompts upgrade for 1.3 billion electricity meters
ABI Research finds Advanced Metering Infrastructure (AMI) and cybersecurity concerns are prompting the upgrade of 1.3 billion electricity meters by 2027.
Story image
Data Protection
Barracuda launches new capabilities for API Protection
"Every business needs this type of critical protection against API vulnerabilities and automated bot attacks," Barracuda says.
Story image
Remote Working
Australia’s remote workers face connectivity and security issues
SOTI's new report finds better video conferencing technology and improved security measures are top concerns for remote workers in Australia.
Story image
Cradlepoint expands its Cellular Intelligence capabilities
Cradlepoint has announced additional Cellular Intelligence capabilities with its NetCloud service.
Story image
Fastly acquires Glitch, enables faster developer innovation
"This acquisition brings together two of the worlds best ecosystems for application development into a single, seamless developer experience."
Story image
Amazon Web Services / AWS
RedShield leverages AWS to scale cybersecurity services
"Working with AWS gives RedShield the ability to mitigate significant application layer DDoS attacks, helping leaders adopt best practices and security architectures."
Story image
Sift shares crucial advice for preventing serious ATO breaches
Are you or your business struggling with Account Takeover Fraud (ATO)? One of the latest ebooks from Sift can provide readers with the tools and expertise to help launch them into the new era of account security.
Story image
Let’s clear the cloud visibility haze with app awareness
Increasingly, organisations are heading for the cloud, initiating new born-in-the-cloud architectures and migrating existing applications via ‘lift and shift’ or refactoring.
Story image
New Relic
New Relic launches vulnerability management platform
New Relic has introduced New Relic Vulnerability Management to help organisations find and address security risks faster and with greater precision.
Story image
Digital Transformation
Trading up: It's time to swap core systems for flexible digital applications
This year will see more oranisations planning and commencing high tech renovations that will shake up the way they operate.
Story image
Silver Peak
The path to an adaptive, modern network
Managing and securing the network looks different than it did just two years ago—especially given that most of these networks are made up of multi-generations of infrastructure stitched together over time.
Story image
HINDSITE wins Aerospace Xelerated Pitch Challenge with solution to support Boeing
Brisbane-based startup HINDSITE was the winner of the first ever Pitch Challenge organised by Aerospace Xelerated in partnership with Queensland XR Hub. 
Story image
Tech job moves - Forcepoint, Malwarebytes, SolarWinds & VMware
We round up all job appointments from May 13-20, 2022, in one place to keep you updated with the latest from across the tech industries.
Story image
More than 40% of banks worried about cloud security - report
Publicis Sapient's new report finds security and the lack of cloud skills and internal understanding of business benefits are big obstacles for banks moving to the cloud.
Story image
Lightspeed launches all-in-one marketing platform in A/NZ
ECommerce provider, Lightspeed has launched a new all-in-one marketing solution, Lightspeed Marketing & Loyalty in Australia and New Zealand.
Story image
Trojan cyber attacks hitting SMBs harder than ever - Kaspersky
In 2022 the number of Trojan-PSW detections increased by almost a quarter compared to the same period in 2021 to reach 4,003,323.
Story image
Artificial Intelligence
SAS announces new products amid cloud portfolio success
Analytics and AI company SAS is deepening its broad industry portfolio with offerings that support life sciences, energy, and martech.
Story image
Nutanix study reveals financial services sector lagging with multicloud adoption
Nutanix has released new research that reveals the financial services sector is lagging behind when it comes to multicloud adoption.
Story image
Rubrik Security Cloud marks 'next frontier' in cybersecurity
"The next frontier in cybersecurity pairs the investments in infrastructure security with data security giving companies security from the point of data."
Story image
Digital Transformation
The impact of COVID-19 on healthcare environments and care delivery
The COVID-19 pandemic has revolutionised the healthcare industry while overcoming staff shortages, social distancing requirements, and lockdowns.
Story image
Digital Transformation
The Huawei APAC conference kicks off with digital transformation
More than 1500 people from across APAC have gathered for the Huawei APAC Digital Innovation Congress to explore the future of digital innovation.
Story image
Equinix announces milestones on sustainability commitments
Equinix has released its 2021 Sustainability Report which outlines progress, innovation and accomplishments on key ESG commitments.
Story image
New Relic enters multi-year partnership with Microsoft Azure
New Relic has announced a strategic partnership with Microsoft to help enterprises accelerate cloud migration and multi-cloud initiatives. 
Story image
Customer experience
Gartner recognises Okta for abilities in Access Management
Okta has announced it has been recognised as a Customers' Choice for the fourth time in a row in the Gartner Peer Insights "Voice of the Customer" report.
Story image
SPS network now available to CrescoData eCommerce customers
CrescoData, a Pitney Bowes Company and PaaS business in the commerce space, says its customers can now connect to the SPS Commerce Retail Network.
Story image
Digital Marketing
Similarweb acquires SEO and rank tracking company Rank Ranger
Digital intelligence company Similarweb, which specialises in analysing web traffic, has acquired Rank Ranger, a market leader in SEO and rank tracking.
Story image
Cybersecurity starts with education
In 2021, 80% of Australian organisations responding to the Sophos State of Ransomware study reported being hit by ransomware. 
Story image
Qualys updates Cloud Platform solution with rapid remediation
The new update is designed to enable organisations to fix asset misconfigurations, patch OS and third-party applications, and deploy custom software.
Story image
Data backup plans inadequate, data still at risk - study
The Apricorn 2022 Global IT Security Survey revealed that while the majority organisations have data backup plans in place, data for many are at risk.
Story image
Legrand unveils Nexpand, a data center cabinet platform
Legrand has unveiled a new data center cabinet platform, Nexpand, to offer the necessary scalability and future-proof architecture for digital transformation.
Story image
Nozomi Networks
Nozomi Networks, Siemens reveal software integration
Nozomi Networks and Siemens have extended their partnership by embedding Nozomi Networks’ software into the Siemens Scalance LPE local processing engine.
Story image
The most common online scams in Australia
No one is safe from online scammers, and many of these scammers have capitalised on the pandemic, using this confusing time to attack more people than ever.
Story image
Could your Excel practices be harming your business?
While Excel has been the de-facto standard for budgeting, planning, and forecasting, is it alone, enough to support organisations in the global marketplace that’s facing rapid changes due to digital transformation?
Story image
Women in Technology
Huawei webinar emphasises the importance of women in tech
Industry findings by Coursera discussed as part of a webinar jointly organised by Huawei and Reuters Events found 6% more women enrolled in tech courses this year than in 2021.
Story image
Application Security
What are the DDoS attack trend predictions for 2022?
Mitigation and recovery are vital to ensuring brand reputation remains solid in the face of a Distributed Denial of Service (DDoS) attack and that business growth and innovation can continue.
Threat actors are exploiting weaknesses in interconnected IT/OT ecosystems. Darktrace illuminates your entire business and takes targeted action to stop emerging attacks.
Link image
Story image
Data Center
Preventing downtime costs and damage with Distributed Infrastructure Management
Distributed Infrastructure Management (DIM) can often be a lifeline for many enterprises that work with highly critical ICT infrastructure and power sources.
Story image
A10 Networks finds over 15 million DDoS weapons in 2021
A10 Networks notes that in the 2H 2021 reporting period, its security research team tracked more than 15.4 million Distributed Denial-of-Service (DDoS) weapons.
Story image
New vulnerabilities found in Nuspire’s Q1 2022 Threat Report
“Threat actors are quickly adjusting their tactics and these exploits tend to get industry attention, but the threat posed by older and attacks still persists."
Story image
ChildFund launches new campaign to protect children online
ChildFund says WEB Safe & Wise aims to protect children from sexual exploitation and abuse online while also empowering them to become digitally savvy. 
Find out how a behavioural analytics-driven approach can transform security operations with the new Exabeam commissioned Forrester study.
Link image