While cloud adoption continues to accelerate, few organizations are maximizing the value that cloud can offer. According to a Cisco-sponsored study, nearly 68 percent of organizations are using cloud to help drive business outcomes, a 61 percent increase from last year's study.
The increased cloud adoption is being fueled by cloud-native applications, including security and the Internet of Things (IoT) cloud-based solutions. However, most organizations (69 percent) do not have mature cloud strategies and only 3 percent have optimized cloud strategies generating superior business outcomes.
On average, the most “cloud advanced” organizations see an annual benefit per cloud-based application of $3 million in additional revenues and $1 million in cost savings. These revenue increases have been largely the result of sales of new products and services, gaining new customers faster, or accelerated ability to sell into new markets.
The study, conducted by IDC, also reveals that 95 percent of those leading organizations with optimized cloud strategies have built a hybrid IT environment that uses multiple private and public clouds based on economics, location and governance policies.
In the study, IDC identifies five levels of cloud maturity: ad hoc, opportunistic, repeatable, managed and optimized.
Hybrid Cloud Adoption by Country
Hybrid cloud adoption (public cloud and private cloud services) varies by country, with Korea and Japan among the countries with the greatest percentage of organizations using a mix of public cloud services and dedicated assets. The study notes the percentage of organizations with hybrid cloud adoption in the following countries:
United States, 45%
Latin America Region, 47%
UK, 46%
France, 42%
Germany, 51%
Australia, 41%
Canada, 47%
Korea, 55%
The Netherlands, 42%
Japan, 54%
China, 52%
According to the study, organizations face a number of obstacles to achieving greater cloud maturity, including capabilities and skills gaps, lack of a well-defined strategy and roadmap, legacy siloed organizational structures, and Information Technology/Line of Business (IT/LOB) misalignment.
Cisco Business Cloud Advisor Adoption Report
Cisco is helping customers translate the findings of this study into personalized analysis and guidance. The Cisco Business Cloud Advisor Adoption Report allows organizations to complete a brief survey to determine their own cloud adoption level and associated business benefits relative to their industry peers—by industry, company size, and geography. Customers can access the tool and additional information at www.cisco.com/go/bca. The tool will continue to be offered to Cisco partners to use with their customers.
In addition, Cisco is launching a new set of Cloud Professional Services to help businesses navigate the multicloud maze and optimize their cloud environments. These services will help customers bridge the skill-set gaps they may be facing as they accelerate their digital transformation strategies and cloud native initiatives.