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TCS Global Cloud Study – Asia-Pacific
The TCS Global Cloud Study surveyed 1,000 senior executives across multiple sectors, revealing the critical role of cloud technology in driving business innovation and aligning IT with business objectives. Despite a reported culture of innovation, challenges remain in cloud implementation and governance, with a significant percentage of organizations still in early stages of ecosystem maturity. The study emphasizes the need for stronger data governance, continued investment in data-intensive technologies, and the adoption of industry-specific cloud solutions to enhance growth and transformation.
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TCS Global Cloud Study – Asia-Pacific
- 1. June 2023 Connected future: Howcloud drives business innovation TCS Global Cloud Study: Asia-Pacific
- 2. 2 Call to action TheTCS Global Cloud Study surveyed approximately 1000 senior executives in multiple sectors across Asia, Europe and North America, more than half with revenue over $5 billion. The survey results from the APAC region included 252 survey respondents from across India, Japan, Australia and New Zealand. We recommend the following actions Ensure all responsibility and decision- making for cloud-enabled innovation rest with both IT and business stakeholders. Connect business and IT requirements for cloud – and the stakeholders of those – to high-level objectives, with a focus on long-term gains. Cloud technology can fuel the next level of edge computing, AI and the Internet of Things (IoT) to harness the power of these modern technologies for business innovation.. Cloud skills and experience fall short in critical capabilities that could impact growth and transformation. Industry clouds, uniquely tailored for specific sectors with baked-in subject matter expertise and best practices, are rapidly becoming a source of rapid transformation. Aligning business & IT stakeholders. Continued investing in data-intensive technologies. Acquiring greater competencies.
- 3. The current stateof cloud-enabled innovation
- 4. 4 Innovation is entrenchedas part of cloud’s value for the majority Have successfully established a culture of innovation from leadership to board level to employees 62% 57% Say cloud is crucial to their organization’s future as a catalyst for innovation Cloud & innovation Innovation with a purpose Organizations ranked “new ways of aligning purpose with business strategies (e.g., sustainability efforts)” as one of the top goals for cloud-enabled innovation Q. To what extent does your organization possess the following skills and capabilities for cloud environments and applications? :- Established culture of digital innovation, from leadership to board level to employees; Q16. Percentage of respondents that “agree or significantly agree” with the following statements. :- Cloud is crucial to our organization's future as a catalyst for innovation.; Q. Percentage of respondents that “disagree or significantly disagree” with the following statements.
- 5. 5 Q. Percentage ofrespondents selecting “agree” or “significantly agree” that “cloud implementations have been more challenging or frustrating technically than expected”; they feel “increasing pressure and scrutiny to justify investment decisions”; “they have changed or are changing their cloud strategy due to insufficient ROI” n=252 Implementation and ROI challenges persist 38% say cloud implementations have been more challenging or frustrating technically than expected 27% say they feel increasing pressure and scrutiny to justify investment decisions 25% say they have changed or are changing their cloud strategy due to insufficient ROI
- 6. 6 Right-sizing cloud investmentstests the majority of respondents Just over half of APAC respondents say they invested appropriately in cloud 48% 39% 12% APAC Invested appropriately Over-invested Under-invested 69% Say cloud is a long- term investment and they intend to stay the course Q. Percentage of respondents selecting “agree” or “significantly agree” that “our leadership recognizes that cloud is a long-term investment and intends to stay the course”; Thinking back on the past 3 years, how would you describe your company's cloud investments n=252
- 7. Hyperconnected ecosystems remain elusive Stakeholders Ina free enterprise, the community is not just another stakeholder in business, but is in fact the very purpose of its existence. “ “ -Jamsetji Tata
- 8. 8 Everyone is astakeholder, but not all stakeholders are connected Cloud has allowed organizations to overcome previous limitations of scale to embrace interconnectedness with partners, customers and employees on levels otherwise unknown. But they’re not there yet: More than half of respondents surveyed are in the initial stages of ecosystem maturity. Percentage of respondents at each stage of digital ecosystems maturity No plans to participate in ecosystems Initial stage: Assessing requirements and planning participation in ecosystems Early stage: Implementing industry, customer or partner ecosystems Middle stage: Initial participation in industry, customer or partner ecosystems Late stage: Firmly entrenched and participating in industry, customer and partner ecosystems Q. Please rank your digital ecosystem maturity level. In this survey, a digital ecosystem is defined as a complex network of stakeholders that connect online and interacts digitally in ways that create value for all. (n=252) 13% 53% 16% 10% 9%
- 9. 9 Who should owncloud? While 2/3 of cloud transformations are still led by IT only or mostly IT, there is a consensus that business should play a larger role. The largest proportion of respondents (35%) ideally envision a 50-50 even split between business & IT leaders. Business (including CEO, business unit heads)) Q. Which department currently has the majority of the responsibility of the decision-making and ownership for cloud transformation in your organization? Q. Which department should have the majority of the responsibility and ownership to manage cloud transformations in your organization? Do respondents agree with the current division of ownership? 12% 10% IT only (including CIO, senior IT leaders) 23% 15% Mostly IT, some business 44% 33% 50%-50% even split between business & IT leaders 17% 35% Mostly business, some IT 4% 7% Percentage of respondents that say the following roles currently have the majority of the decision-making and ownership of cloud transformation Percentage of respondents that say the following roles should have the majority of the decision- making and ownership of cloud transformation
- 10. Stronger data governancesets the stage for greater access, investment and reporting Insights The best vision is insight. “ “ - Malcolm Forbes
- 11. 11 Balancing data risksand opportunities: Stronger data governance sets the stage Ecosystems and data are coming together in new and unexpected ways. There’s a growing recognition that a free flow of data is required to foster innovations among the multi-stakeholders who comprise the ecosystem. Cloud is the unifying digital fabric that makes this possible – it democratizes access to data and powers the technologies to bring the connected future to life. Q. To what extent does your organization possess the following skills and capabilities for cloud environments and applications? :- Data governance and compliance What’s needed? 29% Only 29% say they excel in data governance and experience no issues Stronger data governance, so that organizations can safely and strategically usher in a new era of data democracy and sharing.
- 12. 12 Accelerated investments indata-intensive technologies Percentage who increased investments in data-intensive technologies in the past 12 -24 months compared to intended investments in the next 12-24 months n=252 Investments are also heavily slanted toward AI/ML technologies, unsurprising given the backdrop of renewed urgency. Artificial Intelligence (AI)/ Machine Learning Data Community of Practice (CoP) Scenario modelling Virtual hyper- automation Physical autonomous systems (e.g., drones) 80% 83% 87% 88% 55% 54% 38% 41% 44% 44% Next 12-24 months Past 12-24 months
- 13. 13 Slower but steadyprogress Percentage who increased investments in data-intensive technologies in the past 12 -24 months compared to intended investments in the next 12-24 months n=252 There is enormous transformative potential for a connected future through digital twins/threads, 5G, edge and IoT technologies. Organizations are investing in these technologies, but at a more measured pace than AI/ML. Digital twins/threads Connected cars/fleets Edge/IoT computing 5G networks 19% 21% 33% 33% 50% 54% 48% 48% Next 12-24 months Past 12-24 months
- 14. 14 An investment focuson the here and now Percentage who increased investments in data-intensive technologies in the past 12 -24 months compared to intended investments in the next 12-24 months n=252 There is remarkably little investment in augmented reality and virtual reality in support of metaverse participation. Organizations may still consider metaverse more in the futuristic realm, along with quantum computing and digital twin/thread technologies. Augmented reality/virtual reality for metaverse participation Quantum computing 19% 25% 12% 12% Next 12-24 months Past 12-24 months
- 15. 15 Cloud-enabled tracking andreporting for sustainability of respondents say cloud technologies have helped their organizations achieve sustainability goals 66% 38% report “difficulty understanding carbon footprint impact of cloud service provider” Across all industries, there is a collective imperative to build sustainable, inclusive futures. Respondents see cloud as an important – and thus far successful – part of that vision. Transparency is key; enterprises are increasingly using cloud to track critical data indicators of sustainability and demand the same visibility into their cloud service providers.
- 16. Industry cloud adoption accelerates Expertise Sustaininginnovation is the lifeblood of any enterprise. “ “ - Geoffrey Moore
- 17. 17 Few are fullycloud mature Despite the accelerated pace of investment and adoption throughout the past few years, only 29% of Asia Pacific respondents say they are fully cloud mature. Fully achieved cloud maturity Achieved most cloud-based goals for critical apps & workload Achieved some cloud-based goals for critical apps & workload Early stages: Still struggling with digital core Q. How would you describe your company’s cloud maturity as it relates to your critical apps and workloads? n=252 29% 24% 43% 5%
- 18. 18 Multi-cloud environments arethe norm After a period of rapid change, multi-cloud environments are the norm, adding greater complexity. Q. What best describes your cloud deployment model? Choose the one that most closely resembles your current scenario. Cloud deployment model Hybrid cloud (a mix of public and private) 70% Public cloud only 27% Private cloud only 3%
- 19. 19 Skills are notkeeping up with the complexity Given the complexity of managing multiple clouds and tools, skills are not where they should be for critical areas. Q. To what extent does your organization possess the following skills and capabilities for cloud environments and applications? 48% Proportion of respondents who report proficiency challenges with skills and experience in the following areas Enterprise-wide cloud strategy based on business objectives Established cloud ROI metrics Financial operations & management (FinOps) Development & operations management (DevOps) Agile practices & methodologies 49% 51% 43% 52% Many organizations lack full proficiency in critical cloud skills, including both FinOps and DevOps, ROI metrics and agile practices.
- 20. 20 Q Proportion ofall respondents saying that the following are the biggest obstacles to cloud-enabled innovation; Q. To what extent does your organization possess the following skills and capabilities for cloud environments and applications? :- Security (apps, data, etc.) Q. “Pick the top 3 most desired outcomes for cloud-enabled innovation at your enterprise (n=252) Cloud security is a consideration, but not an obstacle Just 23% of respondents reported that security concerns are the biggest obstacle to cloud-enabled innovation 34% Say they excel in cloud security and experience no issues
- 21. 21 Q. How oftendo you need to customize your ERP system to accommodate new functionality or business requirements? Have legacy enterprise apps reached the tipping point? 42% 46% 12% Rarely (1-2 times/year) Sometimes (3-4 times/year with quarterly rollouts) Often (weekly or monthly) Cloud-native ERP Past 12-24 months Next 12-24 months % who increased investments in cloud-native ERP in the past 12 -24 months compared to intended investments in the next 12-24 months 53% 54% Given that many respondents say their core systems require frequent customizations, it’s no surprise half of respondents say they either already have or plan to increase investments in modernized, more composable enterprise application technologies.
- 22. 22 Have already adoptedindustry-specific cloud solutions or capabilities Currently adopting industry-specific cloud solutions or capabilities Assessing requirements and planning implementation of industry-specific cloud solutions or capabilities No plans to adopt industry cloud Q. Have you considered or are you considering adopting industry cloud solutions or capabilities? In this survey, an industry cloud is defined as a vertical cloud environment heavily customized for a particular industry. A fast path to expertise Industry clouds are rapidly emerging as a fast path to acquiring expertise and capabilities. A full 42% of organizations surveyed are assessing requirements and more than a quarter are either currently adopting them or have already done so. 16% 31% 42% 11%
- 23. 23 Demographics – Geo,role and revenue Asia Pacific representation by % Revenue representation $1bn to $4.99bn $5bn to $9.99bn $10bn to $14.99bn $15bn to $19.99bn $20bn+ Role representation by CXO SVP/VP Senior Director BU Head India 40% 40% Japan Australia 3% New Zealand 17%
- 24. 24 Demographics - Industry Industryrepresentation Technology Manufacturing Utilities Transportation & logistics Accommodation & food services Healthcare Energy & resources Lifesciences Banks & financial services Insurance Consumer packaged goods (CPG) Communications, media & information services Retail
- 25. Download the Article Contact Us ConnectedFuture: How Cloud Drives Business Innovation TCS Global Cloud Study