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Cloud Computing: Move to As-A-Service Will be Slow For Many Large Enterprises
Half of businesses will not be able to covert their core enterprise processes to cloud-based “as a service” operations for at least another five years, according to research by HfS and Accenture. The report finds that while the way enterprises implement services will change dramatically, enterprises move slowly and that it will take some time before cloud-based services will be the norm. But the report finds that those businesses slow to adopt the cloud may find themselves at a disadvantage to the businesses that do move to the cloud.
It’s not that businesses don’t have the desire to use cloud technologies. The HfS survey found that 83 percent of enterprises thought that adoption of “as a service” technologies would be critical for their business, and half said that implementation of analytics, automation and proactive intelligence capabilities today would have a “massive impact” on their business.
Michael Corcoran, senior managing director at Accenture Operations, said that “enterprises are facing enormous challenges from the digital business evolution and other competitive forces to increase revenue and decrease costs while improving the client experience but our research shows that there’s still not enough of a burning platform – or capability – to drive change in the near term. As outsourcing moves beyond labor arbitrage, process efficiency and transaction processing and into a new era of service delivery, both buyers and providers need to make a concerted effort to transition to an As-a-Service model to remain competitive.”
Corcoran added that “by applying technology, data and analytics, and talent smartly – what we call Intelligent Operations – buyers are in a better position to innovate faster, create new services and exploit new business opportunities to drive material business outcomes. By effectively moving to the cloud and applying the right digital technology, automation, artificial intelligence and analytics to unlock competitive advantage from data, and utilizing talent smartly, companies are in a better position to innovate faster, create new services and drive business outcomes that positively impact their top and bottom-line.”
