Cisco-Sponsored Survey: Cloud Adoption Up, But Few Making Full Use of Value

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Cloud adoption among organizations is accelerating rapidly, while few are maximizing the value it can offer, according to a new global study released by Cisco.

Cisco's Mike WestonNearly 68 percent of organizations are using cloud to help drive business outcomes, a 61 percent increase from last year’s study. The increased adoption is driven by cloud-native applications, including security and the Internet of Things (IoT) cloud-based offerings.

However, 69 percent do not have mature cloud strategies and only 3 percent have optimized cloud strategies generating “superior business outcomes,” according to the study, which was developed by IDC and includes executives responsible for IT decisions in more than 6,100 organizations across 31 countries.

“Our customers are dealing with increasingly diverse and complex environments as their hybrid and multi-cloud deployments grow,” said Mike Weston, vice president of Cisco Middle East. “These customers want the freedom to choose the best environments and consumption models for their traditional and cloud-native applications, which all drive a variety of business benefits. Yet, as this research bears out, while many customers are embracing cloud, most are still in the early stages of their journey to an optimized cloud model.”{ad}

On average, the most cloud-advanced organizations see an annual benefit per cloud-based application of $3 million in additional revenue 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 also revealed 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.

The greater the level of cloud maturity, the better the level of business outcomes, according to the study. This includes strategic business outcomes such as improved revenue growth and more strategic allocation of IT budgets, as well as tactical benefits including lower IT costs, reduced time to provision IT services and increased ability to meet SLAs.

Organizations face a number of obstacles to achieving greater cloud maturity, including capabilities and skills gaps, lack of a well-defined strategy and road map, legacy siloed organizational structures, and information technology/line of business (IT/LOB) misalignment.

Also Monday, Cisco launched a new set of cloud professional services aimed at helping businesses navigate the “multi-cloud 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,” it said.

The new services include: multi-cloud management and orchestration services for Cisco Cloud Center; cloud acceleration services; enhanced application and cloud migration services; and IT transformation services.

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