CxO 2019 – Investment Priorities – Cloud Computing
The CxO 2019 survey results reflect a very competitive landscape in which companies are facing many challenges and looking to both cut costs by improving operational efficiency and reach new customers to boost their revenue streams. Overall, the companies are mostly aware of the benefits the cloud can offer in addressing challenges and most of them have already cloud initiatives in place and plan to extend them in the next couple of years.
Digitally enabled newcomers are entering the market race and they make winning and/or retaining customers even harder for traditional players, who are now forced to evolve and become more agile. Becoming flexible in addressing customer demands and being able to fine-tune existing products and services or launch new ones is becoming a higher priority for companies, which are more and more using the cloud as a tool to accomplish these goals.
The U.S. region tops the chart for cloud adoption thanks to a large and mature IT services market and extensive cloud offerings from US providers. Europe, on the other hand, is lagging somewhat behind the U.S., which is the result of a very fragmented market with many countries, each with its own local legal requirements and economic environment that can slow down cloud adoption.
Banking, telecommunications, and energy/utility companies are facing massive competition and lower margins and therefore should be most advanced in cloud adoption (in fact it is manufacturing, but the others are catching up) because they are trying to utilize the growing amounts of data to optimize their operations and expand their portfolios. Additionally, for banking and telcos, IT is the value chain and the impact of the cloud on their top and bottom lines is very quick. The survey also shows that larger companies are more cloud-savvy, which is reasonable because they often have more complex internal processes and more customers to serve, which requires planning their cloud and digital initiatives in advance.
Overall, it seems that decision-makers are very conscious about the potential of the cloud and its importance will continue to grow, especially as the need for other technologies such as big data, the Internet of Things (IoT), AI/ML, and cyber security gain further importance. It is important to note that especially line of business managers still think primarily about private and hybrid cloud if they think about cloud.
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