Help, CFOs: Most Asian Firms Still Immature in the Cloud

How to avoid the coming cloud complexity crisis

More than 85% of Asia Pacific ex-Japan organizations are still in the early stages of maturity, the latest study of industry researcher IDC suggests. But 20% of companies have at least progressed to the second stage (collaborative standardization).

According to IDC, 42.7% of survey respondents are in the first stage (ad hoc: exploratory clouds), while another 42.5% are in the second stage (opportunistic: collaborative standardization). The proportion of companies in the second stage has risen by 20 percentage points from the 2016 study.

“Fewer organizations are seen to have crossed over from stage two to three (repeatable), which is reflective of the difficulty in crossing the chasm between these two stages,” says IDC.

One takeaway for CFOs: the importance of financial support and other investments in cloud maturity. “Progressing to stage three requires significant investments in technology, tools, processes and skills – all of which take time and budget,” IDC adds.

IDC notes that IT outsourcing and managed services helped Australia, New Zealand and Singapore achieve maturity in cloud adoption

Competitive advantage                                                                       

IDC believes that the technology gaps between organizations with strong and with weak digital transformation leaderships are narrowing because it is now easier to adopt and standardize cloud services.

The implication is that companies should work harder to progress to the third stage to enjoy a competitive advantage.

"Speed and agility have become the key drivers for cloud adoption,” argues William Lee, Research Director, Cloud Services, IDC Asia/Pacific. "Organizations need more consistent, standardized, and available automated cloud resources to enable developers and line-of-business teams to execute at speed and cost.”

Organizations that leverage on externally sourced services like IT outsourcing and managed services will be able to cross the maturity chasm, IDC suggests. It notes that IT outsourcing and managed services helped Australia, New Zealand and Singapore achieve maturity in cloud adoption.

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