Businesses could increase their earnings significantly if they had less technology debt and were more mature in terms of cloud adoption.
This is according to a new report from Avanade, which claims businesses could earn an extra $1 billion per year, as well as cut operational costs by more than 11 per cent.
This would require businesses to take a “holistic approach to cloud technology, apps and modern engineering techniques” and ensure they're “ready by design”, as Avanade puts it.
Polling more than 1,600 C-level execs, the company found just 12 percent think their cloud capabilities are “optimised”, while the majority (45 percent) consider themselves at the “initial” or “opportunistic” stage of their cloud adoption journey.
Around a quarter (27 percent) expect their cloud strategy fully optimised by 2023, but the road ahead won’t be without its bumps.
Respondents expect technology debt to rise from 17 to 19 per cent. The costs of handling legacy software will slow down time to market (according to 76 percent), stifle innovation (74 percent), and make it difficult to retain skilled workers (74 percent).
“Cloud maturity is creating a two-tier business landscape with digital laggards finding themselves stagnating while their digital-native competitors are steaming ahead,” says Adam Wengert, Global Applications and Infrastructure Lead, Avanade.
“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.
“Successful businesses will be those that are not afraid to experiment, that truly drive enterprise innovation and get new ideas into market faster, and more often than their competitors,” he added.