CEOs are constantly challenged with finding ways to transform their businesses and to take old problems and turn them into new opportunities. They are also looking for ways to effectively differentiate themselves from their competition. One area that holds significant promise for companies in fast growth mode or emerging markets is the IT area. Organizations that are not heavily invested in legacy IT systems can leapfrog their competitors by investing in the newest and best available systems via the most current cloud computing models. Companies that are capable of understanding and harnessing the power of the cloud will generate new revenue more efficiently and will begin to break down the barriers in their supply chains through better transparency and interaction with vendors and clients.
Cloud computing is all about delivering speed, agility and cost reduction to IT and other functional areas within the enterprise. And while it is true that the basic allure of cloud computing is cost reduction there are several other key impacts cloud computing will have on your business environment. To better understand these trends and impacts KPMG International and Forbes Insights conducted a global survey of 900 IT executives, IT users, and IT vendors entitled “Clarity in the Cloud.” The study was primarily focused on cloud computing trends, challenges, costs, and expected outcomes. Below are the U.S. respondent survey results from several key survey questions.
Which of the following best describes the potential impact of cloud on your business model/operations?
• 49% said it will reduce costs
• 28% said it will fundamentally change our business model
• 40% said it will change our interaction with customers and suppliers
• 33% said it will provide management with greater transparency on transactions
• 35% said it will accelerate time to market
• 13% said it will have no significant impact
What is the status of your organization’s current use of a cloud environment?
• 20% are evaluating
• 21% are using/testing
• 13% are embracing/transitioning
• 7% are running all core services on the cloud
• 8% plan to implement next year
• 4% plan to implement next 2 years
• 3% plan to implement next 2+ years
• 10% not considering at all
• 14% don’t know
As you can see from the responses above the cloud can have significant positive business impacts and many companies are moving aggressively forward to capture those benefits before their competitors. Lower costs, greater transparency, and improved customer relationships are game changers that can clearly differentiate your firm from your competition. The path from present state to a future cloud state may not be clearly marked but with the right guidance and counsel it can happen with minimum risk and disruption to your business.
If you would like to know more about how cloud computing can improve your business processes please call on us, we would be happy to discuss it with you.