Lack of Cloud Expertise Could Cost Enterprises over $250 Million Annually
A study by the London School of Economics (LSE) in association with a leading Managed Cloud Provider has revealed that large enterprises without cloud computing expertise are likely to lose around $258 million, an equivalent of 5 percent global revenue, every year.
As part of the study, a pool of 1900 respondents comprising an equal number of IT decision makers and IT professionals from organizations using the cloud in several countries, were interviewed during April and May 2017. They were provided the option of responding anonymously if they chose to. The respondent organizations were selected from both private and public sectors with a headcount of over 1000 employees.
The Survey Responses
While over 70 percent of the IT decision-makers believe that lack of cloud expertise has led to their organizations losing revenue, around two-fifths believe lack of skills is hampering their ability to deploy cloud platforms. Almost half the respondents claim that the cloud has delivered them a positive return on investment (ROI), while an additional 39 percent are expecting the same in future.
On similar lines, over 40 percent of the IT professionals acknowledge spending a greater amount of time in managing daily cloud operations than they had planned, while 84 percent think that greater cloud expertise will result in increased ROI.
Recommendations of the Report
The study provides inputs on how companies can overcome the gaps in their cloud expertise skills. Dividing the IT function into two separate streams will enable organizations to focus on both business-focused digital innovation and operations focused innovation. Adopting a cloud skills strategy will go a long way in mapping the organization’s current skills with future innovation trajectories and in matching them with an accurate assessment of the talent pool available. Finally, by adopting an ecosystem approach for provisioning basic cloud services, organizations can address the challenges of continuous improvement and innovation.
According to Will Venters from LSE, “Cloud technology has opened up a huge number of development and innovation opportunities. However, to fully realize these opportunities, organizations need to not only have the right expertise in place now, but also have a cloud skills development strategy to ensure they are constantly evolving their IT workforce and training procedures in parallel with the constantly evolving demands of the cloud. Failure to do so will severely impede the future aspirations of businesses in an increasingly competitive digital market.”