Cloud adoption paves the way for innovation, but concerns persist
Many leaders across the world see cloud computing as an innovation catalyst, but security concerns around these technologies could slow progress.
The value of cloud computing is sometimes taken for granted with artificial intelligence and other emerging technologies occupying the spotlight, but a new report shines light on the pervasive impact of the cloud and how it can fulfil its vital role in harnessing the power of new technologies.
"The cloud's biggest value – scaling up computing resources efficiently and flexibly – is a key enabler of digital innovation," the 2023 Global Cloud Ecosystem report said, noting that AI, blockchain, and other emerging technologies will define the next stage of innovation but that "bottom-line efficiency and top-line innovation mean cloud computing is fast facilitating further innovation."
The MIT Technology Review Insights report, produced in partnership with technology services company Infosys Cobalt, found that more than 80% of survey respondents report more cost efficiency due to cloud deployments. Two-thirds have measured a positive return on investment (ROI) from cloud computing.
Concerns over the maturity of the cloud were noted as well. Less than half of the 400 leaders in technology roles at large organisations who participated in the global survey labelled their countries as leaders in the development of data sovereignty laws and regulations that can power security and efficiency.
"Strong data privacy protection and governance is essential to accelerate cloud adoption," the report said. "Perceptions of national data sovereignty and privacy frameworks vary, underscoring the lack of global standards."
Some regional takeaways from the report:
North America leads the way in cloud adoption: While most leaders from all jurisdictions linked cloud investment to business value, North America stood out. Seventy-six per cent of North American leaders reported a positive ROI from cloud computing over the last two years, compared with 66% across the entire survey. Every US respondent said their organisation was invested in a cloud security framework.
Europe leads in climate reporting, security: Just 35% of organisations overall reported prioritising cloud-based resources in the last two years to account for Scope 1 and 2 carbon emissions, but 42% of European organisations did. The large majority of respondents said they employ "zero-trust data access policies for cloud-based resources," led by Europe at 95%.
Asia Pacific's ESG focus: When it comes to prioritising the cloud for ESG compliance reporting, Asia Pacific respondents outpaced the survey as a whole (62% to 54%). Also, 84% of respondents in Australia and New Zealand reported that cloud investments have directly contributed to innovation at their organizations – more than any of the four regions in the report.
— To comment on this article or to suggest an idea for another article, contact Steph Brown at Stephanie.Brown@aicpa-cima.com.