Avanade: 88 Percent of Executives Say Their Cloud Isn’t Optimized

According to a report released today by Avanade, 88 percent of senior IT decision-makers and executives say that their company’s cloud infrastructure isn’t at the optimization stage. The company’s report, Ready by Design, contains the results of a global survey that interviewed 1,650 IT decision-makers around the world on their cloud capability. The results revealed that while businesses realize the importance of optimizing the cloud, many still lag behind in building technologies that take advantage of the cloud’s power.

Avanade’s survey found that the majority of companies have not yet reached the stage where cloud solutions and infrastructure are fully optimized. 88 percent of respondents said that they aren’t at the optimization stage of cloud maturity, and 73 percent stated that they wouldn’t reach that goal within three years. Avanade also found that only 19 percent of the app portfolio of respondent companies has been rebuilt to be cloud native.

While the survey reveals a lack of preparedness for the cloud, other results from the survey shows that executives are not blind to the cloud’s advantages. Nine in 10 respondents claimed that cloud native architectures will help deliver new business value over the next three to five years. In fact, Avanade predicts in its press release on the report that enterprises can achieve an extra $1 billion in revenue As technology debt continues to rise in the business world, companies need to accelerate their full transition to the cloud by developing cloud native architectures and applications.

In the company’s official press release on the report, Avanade’s Global Applications and Infrastructure Lead Adam Wengert said: “We know that digital disruption is pervasively impacting all industries, and it poses a very real threat, even to well established businesses. Cloud maturity is creating a two-tier business landscape with digital laggards finding themselves stagnating while their digital-native competitors are steaming ahead. The point of differentiation comes from the natives’ ability to pivot towards opportunity and away from threats within days, not months and years, thanks to their cloud-based architecture.”

Download your copy of Avanade’s report here.