TCS Global Cloud Study – Continental Europe
0 likes40 views
The TCS Global Cloud Study surveyed around 1000 senior executives in continental Europe to assess the role of cloud in driving business innovation. The findings reveal that organizations are focusing on integrating business and IT strategies for cloud initiatives, improving transparency in costs, and addressing skills gaps while recognizing cloud as a long-term investment for innovation. Despite progress, many organizations remain in the early stages of digital ecosystem maturity and face challenges in data governance and security.
TCS Global Cloud Study – Continental Europe
- 1. June 2023 Connected future: How cloud drives business innovation TCS Global Cloud Study: Continental Europe
- 2. 2 Call to action The TCS Global Cloud Study surveyed approximately 1000 senior executives in multiple sectors across Asia, UK&I, Continental Europe and North America, more than half with revenue over $5 billion. The survey results from the Continental Europe region included 256 survey respondents from Germany/Austria, Switzerland, France, Spain, Luxembourg, Belgium, Netherlands, Norway, Denmark, Sweden and Finland. We recommend the following actions Take an integrated approach to decision-making that makes cloud- enabled innovation the responsibility of all. Beyond the IT department, find application areas in the cloud through collaboration with individual business units. Improve transparency and understanding of cost factors for cloud initiatives. Connect business and IT requirements for cloud – including cost – to high-level objectives, with a focus on long-term gains. Identify and overcome shortfalls in capabilities that could impact growth and transformation. Multi-cloud approaches will likely enhance the need for broader skills requirements. In addition, gaps in data governance and security could prove serious impediments to newer technologies. Aligning business & IT stakeholders. Developing a strategy for cost control. Achieving and maintaining critical skills.
- 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 established a culture of innovation from leadership to board level to employees 63% 54% Have faith in cloud’s potential 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 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 “disagree or significantly disagree” with the following statements. :- We have lost faith in cloud's potential for innovation. n=256
- 5. 5 Right-sizing cloud investments tests the majority of respondents Just over half of European respondents say they invested appropriately in cloud 23% say they have changed or are changing their cloud strategy due to insufficient ROI 52% 27% 21% Continental Europe Invested appropriately Over-invested Under-invested 63% Say cloud is a long- term investment and they intend to stay the course Q. Percentage of respondents selecting “agree” or “significantly agree” that “our leadership recognizes that cloud is a long-term investment and intends to stay the course” and “we have changed or are changing their cloud strategy due to insufficient ROI” ; Thinking back on the past 3 years, how would you describe your company's cloud investments n=256
- 6. 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
- 7. 7 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 Q5. 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=256) 15% 44% 23% 9% 9%
- 8. 8 Who should own cloud? More than 2/3 of cloud transformations are still led by IT only or mostly IT. The largest proportion of respondents (39%) ideally envision an even split between business & IT leaders. 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? Q. 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? 8% Roles who currently have the majority of the decision-making and ownership of cloud transformation 6% IT only (including CIO, senior IT leaders) 22% 20% Mostly IT, some business 41% 32% 50%-50% even split between business & IT leaders 19% 39% Mostly business, some IT 10% 4% Roles that should have the majority of the decision-making and ownership of cloud transformation
- 9. Stronger data governance sets the stage for greater access, investment and reporting Insights The best vision is insight. “ “ - Malcolm Forbes
- 10. 10 Balancing data risks and opportunities: Stronger 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 27% Just 27% say they excel in data governance and experience no issues What’s needed? Stronger data governance, so that organizations can safely and strategically usher in a new era of data democracy and sharing.
- 11. 11 Accelerated investments in data-intensive technologies Percentage who increased investments in data-intensive technologies in the past 12 -24 months compared to intended investments in the next 12-24 months n=256. Investments are also heavily slanted toward AI/ML technologies, unsurprising given the backdrop of renewed urgency. Artificial Intelligence (AI)/ Machine Learning Data Community of Practice (CoP) Scenario modelling Virtual hyper- automation Physical autonomous systems (e.g., drones) 68% 72% 75% 78% 42% 41% 38% 39% 38% 43% Next 12-24 months Past 12-24 months
- 12. 12 Slow but steady progress Percentage who increased investments in data-intensive technologies in the past 12 -24 months compared to intended investments in the next 12-24 months n=256 There is enormous transformative potential for a connected future through 5G, edge and IoT technologies. Organizations are investing in these technologies, but at a more measured pace than AI/ML. Investments in connected cars/fleets, however, are lagging further behind. Digital twins/threads Connected cars/fleets Edge/IoT computing 5G networks 17% 19% 23% 24% 39% 43% 49% 49% Next 12-24 months Past 12-24 months
- 13. 13 An investment focus on the here and now Percentage who increased investments in data-intensive technologies in the past 12 -24 months compared to intended investments in the next 12-24 months n=256 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 18% 23% 14% 14% Next 12-24 months Past 12-24 months
- 14. 14 Cloud-enabled tracking and reporting for sustainability of respondents say cloud technologies have helped their organizations achieve sustainability goals 58% 36% 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.
- 15. Industry cloud adoption accelerates Expertise Sustaining innovation is the lifeblood of any enterprise. “ “ - Geoffrey Moore
- 16. 16 Few are fully cloud mature but even fewer are still in the early stages Despite the accelerated pace of investment and adoption throughout the past few years, only 16% 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=256 16% 34% 40% 10%
- 17. 17 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) 64% Public cloud only 35% Private cloud only 1%
- 18. 18 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? Proportion of respondents who report proficiency challenges with skills and experience in the following areas 56% 59% 62% 62% 68% Enterprise-wide cloud strategy based on business objectives Established cloud ROI metrics Financial operations & management (FinOps) Development & operations management (DevOps) Agile practices & methodologies
- 19. 19 Q. Proportion of all respondents saying that the following are the biggest obstacles to cloud-enabled innovation; Q. To what extent does your organization possess the following skills and capabilities for cloud environments and applications? :- Security (apps, data, etc) n=256 Cloud security is a consideration, but not an obstacle Just 25% of respondents reported that security concerns are the biggest obstacle to cloud-enabled innovation 30% Say they excel in cloud security and experience no issues
- 20. 20 Q. How often do you need to customize your ERP system to accommodate new functionality or business requirements? Have legacy enterprise apps reached the tipping point? 42% 24% 29% 5% 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 39% 43% Given that many respondents say their core ERP systems require frequent customizations, it’s no surprise nearly half of respondents say they either already have or plan to increase investments in cloud-native ERP technologies. Past 12-24 months Next 12-24 months
- 21. 21 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=256 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 37% of respondents surveyed are assessing requirements and another 39% are either currently adopting them or have already done so. 37% 22% 17% 25% 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
- 22. 22 Demographics – Role and Revenue Revenue representation $1bn to $4.99bn $5bn to $9.99bn $10bn to $14.99bn $20bn+ $15bn to $19.99bn Role representation SVP/VP CXO Senior Director BU Head
- 23. 23 Demographics – Country Country representation by count Germany /Austria Switzerland France 50 Netherlands Denmark Spain Luxembourg Belgium Norway Sweden Finland 50 13 11 12 5 9 12 9 40 45
- 24. 24 Demographics – Industry Industry representation by percentage (n=256) Technology Manufacturing Utilities Transportation and logistics Accommodation & food services Healthcare Energy and resources (oil and gas mining) Lifesciences (pharma, devices) Banks & financial services Insurance (Property, casualty, life, re-insurance) Consumer packaged goods (CPG) Communications, media & information services Retail
- 25. Connected Future: How Cloud Drives Business Innovation TCS Global Cloud Study: Continental Europe Download the Article Contact Us