McKinsey claims companies 'prone to self-delusion' when using cloud
By MYBRANDBOOK
According to Gartner, worldwide expenditures on public cloud services will balloon to $362.2 billion in 2022 from $257.5 billion last year - a 41% increase, according to estimates by Gartner. Money channeled to the cloud will represent 14.2% of total IT spending by 2024 compared with 9.1% in 2020.
According to some estimates, yet the typical company wastes as much as 35% of its cloud budget. Many companies have identified lax budgeting as their No. 1 problem when using the cloud. Sixty-one percent of firms said cost savings was their top cloud initiative, ahead of moving workloads off of in-house computers, Flexera said.
Companies also seek payoffs from the cloud in the wrong place. They expect to gain the biggest benefits from improved IT reliability, speed, data security, governance and cost control rather than in generating business value, McKinsey found in its survey across six countries and a variety of sectors, including automotive, machinery, semiconductor, aerospace and defense manufacturers.
McKinsey said, "Our research indicates that the cloud's value in IT amounts to only about 5% of the cloud's potential value, "adding "around 95% of the cloud's $600 billion value potential lies in business-related functions" such as manufacturing, procurement and supply chain.
According to McKinsey, cloud adoption can lead to greater operational efficiency, reduced time to market and the launch of cloud-enabled products and services. "Capturing these business benefits requires transformational changes in business processes, organization, product development or sourcing."
Companies that widely use public cloud service providers gain more than those that rely more on in-house computing, McKinsey said.
"With a name like 'cloud,' it's no wonder organizations lose sight of what it means and how it can deliver tremendous amounts of business value," McKinsey said.
BREAKING NEWS
TECHNO TRENDS
Nazara and ONDC set to transform in-game monetization with ‘
Nazara Technologies has teamed up with the Open Network for Digital Comme...
Jio Platforms and NICSI to offer cloud services to government
In a collaborative initiative, the National Informatics Centre Services In...
BSNL awards ₹5,000 Cr Project to RVNL-Led Consortium
A syndicate led by Rail Vikas Nigam Limited (abbreviated as RVNL), along wi...
Pinterest tracks users without consent, alleges complaint
A recent complaint alleges that Pinterest, the popular image-sharing platf...
E-Magazine
TECHNOTAINMENT
Netflix adds 'Moments' feature for saving, sharing scenes from
Netflix has introduced a new “Moments” feature on its mobile app, whic
Jacqueline Fernandez come together with YouTuber Mr. Beast for
Jacqueline Fernandez has partnered with American YouTuber Mr. Beast to b
MOVERS & SHAKERS
Visa elevates Rishi Chhabra as new Country Manager for India
Rishi holds a Master’s in Industrial Engineering from The Ohio State Univ
Genesys welcomes Albert Nel as Senior VP and Regional Sales Le
Genesys continues to deepen its investment in the APAC region. Earlier this
OPEN YOUR EYES
INTERVIEWS
Autodesk continually pushing the boundaries in the Design and
Autodesk’s vision is of a better world designed and made for all. It inte
AMD Pensando driving innovation in the DPU architecture space
AMD Pensando stands out in the DPU (Data Processing Unit) market with its u
HOT PICK
SonicWall Launches TZ80: A Powerful Solution for Remote Office
SonicWall announced today the launch of the TZ80, a groundbreaking securit
Gigabyte X3D Turbo: A Gaming Revolution
GIGABYTE X3D Turbo Mode is a cutting-edge feature that unifies cores distr
MAKE IN INDIA BRANDS
DRUVA SOFTWARE PVT. LTD.
PRAMA HIKVISION INDIA PRIVATE LIMITED
FIRE BOLTT
LENOVO INDIA PVT. LTD.
EMINENT CIO'S OF INDIA
ICONS OF INDIA
ICONS OF INDIA : RAMESH NATRAJAN
Ramesh Natarajan, CEO of Redington Limited, on overcoming ‘technolog...
SHAKTIKANTA DAS
Shaktikanta Das is serving as the current & 25th governor of the Reser...
ICONS OF INDIA : SACHIN BANSAL
Sachin Bansal is an Indian entrepreneur. He is best known as the found...
PARTNER SPEAKERS
PSU
C-DAC - Centre for Development of Advanced Computing
C-DAC is uniquely positioned in the field of advanced computing...
NPCI - National Payments Corporation of India
NPCI is an umbrella organization for operating retail payments and set...
ITI - ITI Limited
ITI Limited is a leading provider of telecommunications equipment, sol...
VIDEOS
Top 25 Brands
Global Indian industry
Indian Tech Talent Excelling The Tech World - Dheeraj Pandey, CEO, DevRev
Dheeraj Pandey, Co-founder and CEO at DevRev , has a remarkable journe...
Indian Tech Talent Excelling The Tech World - JAYASHREE ULLAL, President and CEO - Arista Network
Jayshree V. Ullal is a British-American billionaire businesswoman, ser...
Indian Tech Talent Excelling The Tech World - RAVI KUMAR S, CEO- Cognizant
Ravi Kumar S, appointed as CEO of Cognizant in January 2023, sets the ...
STARNITE AWARDS 2024
ITFORUM 2024
CMO of the Year
WOMEN LEADERSHIP
IMAGE GALLERY
TRENDS IN TECHNOLOGY
MORE VIDEOS
ADVERTISEMENTS
TECHNOLOGY DISRUPTION
UNICORNS REVOLUTIONISING
