Cloud three times more important for growth and transformation than for cost optimizations: Infosys research

Companies are now considering the cloud three times more important for growth and transformation than for cost optimizations, according to the Infosys Cloud Radar 2023 report.

The research, which surveyed over 2,500 respondents from companies across the US, UK, France, Germany, Australia, New Zealand, and the Nordic countries, sheds light on the shift of cloud utilization from beyond storage and cutting costs to utilizing the cloud to gain access to new technology and capabilities, enable new revenue streams and replace or update current systems.

In 2023, a staggering 67% of companies increased their cloud spending, with 80% planning to further raise their cloud budgets in the upcoming year. The growing expenditure on cloud services underscores its vital role in business operations.

The research also found that nearly 50% of companies struggle to manage their cloud costs. Other key findings of the research include:

• Only 47% of current cloud commitments are utilized, over $300 billion in corporate cloud commitments remain untapped
• Nearly 65% of respondents use three or four cloud vendors, a 75% increase over the proportion who used three or four providers in 2021.
• Over the past two years, the proportion of companies using a single cloud provider has decreased from 21% in 2021 to 7% in 2023
• 73% of the survey respondents agree that cloud migration achieves objectives, driving further cloud interest and investment.

The Infosys Cloud Radar 2023 report also provides three key strategies for achieving success in cloud adoption. These include establishing guardrails for governance and costs as cloud complexity increases with the integration of technologies like generative AI and IoT. Additionally, creating a transparent, agile, collaborative relationship between IT and business helps drive accountability and improves return on investment (RoI).

Thirdly, adopting a value-centric cloud operating model will enable teams to track value flow, create alignment, and encourage engagement around measurable goals, the report says.