One third of businesses still not implementing cloud technologies

06 November 2023 Consultancy.com.au 2 min. read
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Nearly 3 out of 10 businesses around the world do not utilise cloud technology, potentially impeding their future technological prowess. That is according to a report from HCLTech, based on a survey of over 500 senior business and technology leaders.

A majority of businesses are poised to boost their investments in cloud technologies within the coming year. Despite that, a significant proportion of leaders express that their organisations are not yet prepared to adopt the cloud as a foundational business platform, despite the fact that cloud technologies can bring significant benefits.

“Cloud is rapidly becoming the optimal business platform for innovation at scale,” said Kalyan Kumar, Global Chief Technology Officer at HCLTech. “However, many companies have yet to fully tap into its potential.”

One third of businesses still not implementing cloud technologies

The survey findings indicate that three major impediments hinder the swifter adoption and effective utilisation of cloud technology: security, talent, and company culture.

Notably, 58% of senior executives reported that their organisation's culture posed constraints on their ability to innovate in their most recent cloud project, with executives in transportation, logistics, and distribution being more prone to this view, while those in consumer services, technology providers, and manufacturing sectors were less so.

IT leaders and business leaders have different perspectives concerning their organisations’ awareness of cloud tools as a business enabler, with differences in their estimations of how much it could benefit their organisation. For example, 90% of IT leaders claim that their IT teams engage in dialogue with other business units about cloud-driven innovation, in contrast to 81% of business leaders.

One third of businesses still not implementing cloud technologies

Among the organisations that make use of cloud technologies to meet their business objectives, many admit to a lack of clearly defined business outcomes for individual projects. Although business and IT leaders may hold differing views regarding cloud technologies, the report shows that they increasingly want closer collaboration on the issue.

HCLTech said that organisations must continuously modernise in order to properly leverage and regulate the rapidly changing landscape of technology. “Companies need to have a strong cloud strategy in place if they want to be at the forefront of cutting-edge technology like generative AI.”

A recent report by Boston Consulting Group estimated Australia’s public cloud market to be worth over $10 billion, providing a significant contribution to job creation in the country.