Many of the competitive differentiators within organizations (e.g. supply chain, distribution model, customer data, operations, R&D, etc.) have been optimized by IT investments over many years. That organic growth pattern has led to tremendous value in the enterprise – and IT services companies thrive by providing their customers a strategic advantage over their competition through IT investment. But many of these assets sit behind a corporate firewall, may be regulated, and are very proprietary. For these assets, participation in the cloud computing revolution remains elusive. All the while, new startups without these assets accelerate their businesses quickly.
An IDC study of CIOs finds that 57% of CIOs are going to be “focused on delivering business innovation to increase revenues, margins, and new products” over the next three years. In turn, only 9% planned to maintain their “focus on maintenance and operations to manage costs and risks”. Companies are moving forward with a digital transformation strategy, using technology to develop new products and bring new revenue into the business. As the realization of the disruption of cloud has spread from the server room to the board room, businesses and technologists alike are looking for how cloud innovation, can be used to modernize existing investments so that they can continue to provide a strategic advantage to their company.