IBM Transformation Index: State of Cloud

All cloud efforts are not created equal.

A definitive 86% of organizations say they have proven at least the initial benefits of cloud. But one company’s satisfactory cloud may not be another’s. Proving the benefits is a spectrum of value.

For many companies, the journey to cloud summits lacks transparency. We often see a wide gap between where leaders think their organization sits on its cloud journey, and where it actually sits.

Taking stock of the cloud transformation journey

Taking a deliberate view of cloud progress makes sense now. A snapshot of progress in various areas of cloud, as well as in cloud transformation overall, could help C-suite leaders map their cloud journey more effectively.

The IBM Transformation Index: State of Cloud provides that view, allowing organizations to gage how they fare against industry and local cloud norms in a variety of cloud areas. The index is based on our research with more than 3,000 IT and business decision makers in 12 countries and 23 industries, revealing the areas where teams face the biggest challenges and opportunities.

What does the IBM Transformation Index: State of Cloud consider?

Where are most enterprises on their cloud journey?

On the 100-point index, the largest number of organizations fall into the Mainstream category, indicating 43% have made moderate progress on their cloud journey. To date, only 27% of organizations globally have made above-average progress, putting them in the Advancing category. About a third (30%) are still finding their way; these organizations are in the Emerging category.

A look at next moves for cloud strategy

Moving forward, there’s no more “easy button” as many enterprises have exhausted cloud’s low-hanging fruit and must move to more complex cloud endeavors even as they lack the in-house skills to do so. (For more detail on that and cloud’s current state of play overall, download the report.)

Action plans will vary from company to company but a few first moves commonly apply. Organizations that are mastering hybrid cloud share a few things in common. They:

Consider deep cloud

Many enterprises are experiencing diminishing returns from current and conventional technology adoption programs. Look for classic signs that efforts to convert digital technology into business value are failing: Are you doubling down with more programs? Are teams working nights and weekends? Conventional, cost-optimizing cloud, data, software, and AI adoption delivers incremental improvements because it’s designed to do so. Material improvements require a redesigned system. Deep cloud proposes that if you want to make material improvements in how your core business performs, you begin by applying cloud to the most business-critical value streams in your organization.

Avoid bolt-ons

When developing any new business strategy, bake hybrid cloud in—don’t treat it as an afterthought. From a cloud perspective, treat the business ecosystem holistically. Design ventures that integrate partners into the cloud environment.

Create more seats at the table

Ensure cross-functional inputs when designing a cloud transformation strategy. Give both business and IT equal seats at the table in technology decision-making. Create a roadmap that reflects learnings from across the organization.

Insist on zero trust security

Creating security for a world in which breaches are a given means approaching security from multiple fronts simultaneously. Adopt leading security practices across the organization, not in silos. Apply zero trust security concepts to defend connections among ecosystem partners, allowing them to better capitalize on cloud investments.

Cloud transformation made more transparent

When organizations have a clear, unbiased view into the state of cloud transformation, that’s when real progress can begin—component by component, with great precision, to avoid wasted effort.

To learn more about the state of cloud, download the report.