Why is 2023 the year of next-generation cloud value?

It’s encouraging to witness a surge in commitment to cloud computing. According to Accenture’s latest Cloud Outcomes research, nearly 90% of companies have expanded the scope and scale of their cloud initiatives over the past two years, which is undoubtedly the right direction to take. Cloud technology has become fundamental for achieving strategic business objectives in the present and future. However, fully realizing the value of the cloud after transitioning to it can be a complex endeavor.

Our research reveals that while most companies are experiencing some of the expected benefits from their cloud journeys, only an average of 42% are achieving everything they initially anticipated. This suggests that the cloud has untapped potential waiting to be harnessed. Why is this the case? It’s because the easy gains of cloud adoption have mainly been realized. What remains are the more intricate, mission-critical challenges that involve more significant risks and complexities.

Interestingly, it is precisely in addressing these higher-hanging challenges that the most significant rewards lie. The potential for total enterprise transformation is most effective when organizations use the cloud to revolutionize the core, differentiating aspects of their operations. Consider each company’s unique “secret sauce”—the combination of capabilities that sets them apart from competitors and delivers value to customers.

However, this “secret sauce” is also the area where companies have continually innovated, added new capabilities, enhanced customer experiences, and subsequently increased the complexity of their IT infrastructure over the years. Consequently, these aspects are the most crucial to the business and often feel the most daunting and risky to make cloud-ready. Approximately two in five respondents in our Cloud Outcomes research identified legacy application modernization as one of the most stubborn barriers to realizing the full potential of the cloud.

Overcoming these barriers is essential because the cloud has become the operating system of modern enterprises. Your ability to innovate, collaborate, extract value, and grow in the future depends on bringing these complex and vital legacy applications into the cloud.

Moreover, it’s crucial to look beyond simple migration. Migrating to modernize leads to the next level of cloud value. This modernization extends beyond technology; it requires a transformation in how the entire organization operates. It is this broader business transformation that truly unlocks the potential value along the cloud continuum.

Embracing Cloud: A Paradigm Shift for Modern Enterprises

In the corporate world, transitioning to cloud technology can be likened to the challenges of adapting to college life after high school. Regardless of how knowledgeable we believed ourselves to be initially, we swiftly recognized that college was an entirely different educational landscape. We had to relearn how to learn to excel and reap the benefits of this new environment.

Similarly, the cloud represents a transformative shift that demands a willingness to set aside traditional approaches. Companies must unlearn their old working methods and relearn how to operate and think within the cloud ecosystem. This adaptive approach enables organizations to fully harness cloud technology’s potential, swiftly adapting, responding, and flourishing in the face of evolving opportunities and risks. Doing so unlocks the door to groundbreaking innovations that reshape a company and an entire industry.

Embracing the Ever-Evolving Cloud Landscape: A Commitment to Endless Possibilities

The analogy between cloud adoption and continuous learning runs more profound than one might initially think. Like the learning process, cloud technology doesn’t have a fixed endpoint. Just as the most intelligent individuals embrace lifelong learning, the most successful companies perpetually engage in learning, adaptation, and innovation within the cloud environment.

Cloud computing represents an ever-evolving continuum, transitioning from a disruptive technology to a prevailing mega-trend. The constant addition of new features and capabilities each month creates a flywheel effect, enabling companies to gather increasing momentum in their transformation journeys. This underscores the importance of committing to ongoing reinvention and exploring new possibilities to unlock the full potential of the cloud. In a dynamic landscape like this, standing still equates to falling behind.

Striking the Balance: Long-term Vision and Short-term Gains

Encouragingly, our Cloud Outcomes research reveals that more than two-thirds of surveyed companies perceive their cloud journeys as ongoing endeavors. However, nearly a third of organizations consider their journeys completed, posing a risk as they potentially leave substantial value untapped.

This issue gains even more significance in a global economic outlook characterized by fragility and an ever-evolving business environment presenting unforeseen challenges. The cloud’s flexibility and agility are invaluable assets in such a landscape. It can be an efficiency enhancer and a source of fresh business value.

Nevertheless, achieving the right balance between immediate cost savings and long-term business value is crucial. Ultimately, better preparation for the long term yields more significant near-term rewards.

As we step into the new year, businesses have the opportunity to strike the right balance. While significant progress has been made, there’s untapped value in the cloud waiting to be harnessed. Achieving this potential demands a willingness to relearn and adapt, much like the challenges of learning something new. It may be challenging, but the rewards are substantial. Those committed to this journey will maximize their cloud investments and ignite a complete enterprise transformation—a top priority for 2023 and beyond.