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Cracking the value code of cloud technology

The UAE's thriving startup ecosystem and small to medium-sized businesses are projected to reap significant economic benefits from hyper-scale cloud computing, estimated at $17.1 billion by 2030

The past two years have represented a period of dramatically compressed transformation, with Covid-19 as a key inflection point. Commitment to the cloud surged as companies came under immense pressure to prepare their businesses to thrive amid rapid change and become more competitive for the future.

The UAE and Saudi Arabia are at the forefront of cloud adoption in the Mena region. The UAE's thriving startup ecosystem and small to medium-sized businesses are projected to reap significant economic benefits from hyper-scale cloud computing, estimated at $17.1 billion by 2030, as the Dubai Chamber of Commerce reported. Meanwhile, Saudi Arabia is poised for substantial growth in public cloud spending, with the International Data Corporation (IDC) forecasting investments of $2.5 billion by 2026, driven by organizations looking to leverage the power of the cloud to modernize their critical business applications and become cloud-native.

However, even though 86 per cent of companies are actively pursuing cloud initiatives, Accenture's recent 'Cloud Outcomes' research reveals that, on average, only 42 per cent of these companies fully achieve the expected value from their cloud journeys. This is because companies are finding themselves at a new inflection point. The cloud's low-hanging fruit has now been picked, and what's left are the more complex, business-critical problems that are riskier to change and harder to move.

The most significant rewards mean tackling the biggest risks.

But here's the kicker: This higher-hanging fruit is where most of the value lies. Because the most significant potential for total enterprise reinvention comes when you use the cloud to transform the most critical, differentiating parts of your business. Organizations need to address their businesses' critical and determining aspects to extract the maximum value from cloud technology. These areas set them apart from competitors and deliver value to customers.

However, these areas often present significant challenges in terms of cloud adoption. Legacy application modernization, in particular, is a common barrier that organizations face in achieving the full potential of the cloud. According to our ‘Cloud Outcomes’ report, about two in five respondents said legacy application modernization was one (among several) of the most stubborn barriers they face in achieving the full value from the cloud. Overcoming these barriers requires a commitment to continuous reinvention and a willingness to embrace the Cloud Continuum.

Learning how to learn in the cloud

While more than two-thirds of companies surveyed view their cloud journeys as ongoing, a significant portion still considers them complete, potentially leaving value on the table. 3 Cloud technology is not just a destination but a commitment to continuous learning and adaptation, empowering organizations to build momentum in their transformation journey.

It is essential to relearn how to operate and think in the cloud, enabling companies to respond quickly to new opportunities and risks and truly unlock the potential value across the Cloud Continuum. Beyond migration, the next-level value in the cloud comes from modernizing the entire organization, not just the technology itself. This broader business transformation opens the door to breakthrough innovations that can reshape a company or an industry.

Balancing long-term and short-term value

The timing has been favourable for companies that have dedicated significant resources and effort to the cloud over the past two years. As we transition from an era of economic abundance to greater uncertainty, cloud technology offers flexibility and agility, making it invaluable in a rapidly changing business landscape. It provides both cost savings and the potential to generate new business value.

Striking the right balance between short-term savings and long-term value is crucial for organizations. They must focus on delivering immediate cost savings while preparing for future business needs. By balancing this, businesses will be well-prepared to seize opportunities and overcome challenges.

Cracking the value code

Now more than ever, it is essential for companies to "crack the code" and unlock the total value of cloud technology. To achieve peak value and unlock future opportunities, organizations should embrace five key practices:

1.Pursue business and industry advantage: Prioritize use cases that deliver the most value and align cloud investments with emerging business strategies.

2.Design and orchestrate in the Cloud Continuum: Embrace the cloud as an operating model and strategic enabler, leveraging the right mix of capabilities and services across the Cloud Continuum.

3.Unleash new value from data and AI: Utilize the power of data and artificial intelligence (AI) to generate valuable insights that drive sustainable growth and competitiveness.

4.Reimagine the operating model and people: Transform people and processes to thrive in the Cloud Continuum, recognizing that technology alone cannot sustain cloud value.

5.Master cloud economics: Optimize cloud spending by shifting the conversation from cost to value, ensuring transparency and oversight in cloud investments.

Through these practices, organizations can operate on the Cloud Continuum and cultivate new capabilities to drive ongoing reinvention and uncover the cloud’s endless possibilities. This commitment to continuous improvement and innovation will pave the way for sustained success in the digital age.

(Bruno Lombion is managing director and Accenture Cloud First Lead in the Middle East)