So are we not seeing the value of some cloud investments? Per McKinsey, nearly two-thirds of industrial companies use cloud computing. 74% fail to yield expected savings or business value. Half found it more costly than they anticipated, and 40% exceeded their cloud budgets.
And remember, companies waste about 35% of their cloud budget, per a number of surveys.
From the CIO Dive piece: “Our research indicates that the cloud’s value in IT amounts to only about 5% of the cloud’s potential value,” McKinsey said, adding “around 95% of the cloud’s $600 billion value potential lies in business-related functions” such as manufacturing, procurement and supply chain.
Meanwhile, Bessemer Venture has their State of the Cloud 2021 data to compare against. Highlights – Infrastructure as a Service growth for Microsoft, to over 20% of market share. Plus, a huge rise in public cloud valuation.
Here’s your big predictions – 80% of sales interactions will happen through digital channels by 2025. The VC is also big on the SMB – with SaaS.
Why do we care?
Let’s assemble the story – companies are investing in cloud computing, wasting some of the spending, and not getting enough value out yet. Sounds about right – but the answer won’t be not to do cloud.
It will be about getting it right. Because there is so much potential to unlock – that 95% of the value. Because the trend is clear. 80% of sales interactions through digital channels? Sounds about right to me, and what my instincts were saying when I present ecommerce.
Source: CIO Dive