TCS Global Cloud Study – North America
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The TCS Global Cloud Study surveyed over 1,000 senior executives in North America, revealing that while cloud technology is viewed as crucial for business innovation, organizations face challenges in implementation, ROI, and aligning IT and business responsibilities. The study highlights the importance of developing cloud skills and adopting industry-specific clouds to enhance innovation and data governance, as well as the gradual progression towards interconnected digital ecosystems. Despite the recognition of cloud's potential, only 35% of respondents consider their organizations fully cloud mature, indicating significant room for growth in cloud maturity and strategy.
TCS Global Cloud Study – North America
- 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 Download the Article Contact Us