The Cloud Takes Shape
In partnership with Forbes Insight, KPMG International has put together a report called “The cloud takes shape.” In this “global cloud survey,” the professional services firm undertakes to check in with the cloud at this state in its maturity. “Cloud has finally started to move beyond the hype and into the very fabric of today’s enterprise,” the report opens, noting that most organizations have at least partly adopted it.
Indeed, it says, executives have so taken up residency in cloud nation that they’re prepared to endure the steep climb required to get them cozy with the stuff. They “continue to believe that the benefits of cloud adoption far outweigh any growing pains that they may experience through implementation.”
But the danger, the survey says, is that managers will be so dazzled by the initial financial windfalls of their cloud experience (seven in 10 respondents either agreed or strongly agreed that the cloud environment had delivered significant efficiencies and cost savings) that they’ll be blinded to the bigger transformative victories for folks prepared to wait out the cloud’s full blossoming.
Those that can acknowledge that its adoption is more than simply a technology-implementation project but an abiding means of full-on strategic business transformation that requires organizations to rewrite their business processes and includes higher-than-expected implementation costs, integration challenges and loss of control.
As such, the report concludes that organizations need to engage in simultaneous process redesign to address the complexities that often arise in the cloud’s implementation and operational phases. That means business leaders joining forces with IT to develop innovative strategies to replace existing operating models and IT infrastructure.
And, importantly, it means appreciating that this overhaul phase — encompassing IT management capabilities, systems integration, infrastructure and configurations — comes with adoption costs that require the dedication of sufficient budgets and timelines.
Otherwise, organizations might miss out on such long-term cloud-facilitated strategic benefits as more efficient processes, more flexible operating models, and faster entry into new markets and geographies.