Companies are increasingly using cloud computing to improve their operations beyond cost and scalability, including increasing innovation, improving time to market, and improving cybersecurity.
The Hackett Group recently completed a global study on cloud services.
Approximately 70% of all technology infrastructure will be cloud-based within two to three years, according to a study that examined the results of more than 1,000 organizations and analyzed more than 4,000 migrated applications. Post-migration, companies typically experience a 12% reduction in technology infrastructure costs. Among the other significant benefits are:
- A 36% increase in developer time devoted to innovation
- A 45% reduction in time to market for new product features and functionality
- A 53% reduction in the time to achieve actionable insights from data
- A total of 44% fewer security and other critical infrastructure incidents
- And a 52% average reduction in down-time
Even greater benefits were seen by top performers in the study, including a 37% reduction in technology infrastructure costs (three times higher than typical companies) and an average improvement of 15 percentage points across nearly a dozen metrics tracked.
The Hackett Group principal, Michael Fuller, said: “This study was designed to look beyond the hype and truly quantify the benefits of both moving to the cloud and maximising the benefits of cloud infrastructure. And the results clearly show that companies are using the cloud to deliver broad strategic value. It’s about better security, improved speed, quality, and agility. At its best, cloud migration can be the foundation that allows companies to rapidly improve their products and services.”
The Hackett Group senior research director, Richard Pastore, added: “We also came to conclusions about the differences between typical companies and top performers. To truly drive the maximum benefit, top performers make the cloud part of their operating DNA and treat it as a core competitive strategy. They reject the easier application ‘lift and shift’ approach to cloud migration. Instead, they assess their workloads to determine the proper migration methodology and focus on optimising them in the cloud, which often means rearchitecting or redesigning their systems and processes to take best advantage of what the cloud can offer.”
This study was released by the Hackett Group as part of its new Cloud Value Assessment Services Offering, a service that is designed to help organizations optimize the management of current cloud-based applications and future migrations to the cloud. With The Hackett Group’s detailed performance metrics and benchmark taxonomy, the assessment takes just four weeks, a third the time of a full benchmark assessment.
A public overview of the study results, “The State of Cloud Adoption by the Numbers,” is available on a complimentary basis, with registration, at http://go.poweredbyhackett.com/ca2205sm.
The Hackett Group’s Cloud Services Study was completed in December 2021. The study is designed as the first step in a five-year investigation designed to help companies understand cloud migration and ongoing management of costs, value, performance, and experience.