NTT DATA Research Finds Cloud Adoption Slowed by Company Culture

By AIT News Desk On Jan 28, 2020

60% of companies believe technical challenges are easier to overcome than people-related challenges

NTT DATA Services, a recognized leader in global technology services, announced the findings of a study that found 61% of organizations in the US and Canada are committed to moving enterprise applications to the cloud as quickly as possible, but many struggle with challenges related to company culture.

A new study by NTT DATA shows that #companyculture can be a significant barrier for #cloud adoption.

The report, “Every Cloud has a Culture Lining,” found that despite the importance of next-generation cloud adoption, cultural change management is a major obstacle for many businesses, with nearly two-thirds of respondents reporting technical challenges as easier to overcome than people-related challenges.

“Cloud adoption is critical to create a more agile, innovative business, but leaders must address cultural challenges to successfully modernize,” said Emily Lewis-Pinnell, Vice President, Cloud and Application Transformation, NTT DATA Services. “Our findings show only a small minority are taking the appropriate cultural change management steps, but those who are report greater agility, increased efficiency and stronger security.”

The research also found 60% of advanced organizations, called “next-gen cloud leaders” in the report, are focused on building business-essential use cases rather than supporting enterprise application modernization through a simplified lift and shift migration. Additional findings support this trend, as more experienced respondents are more aware of challenges associated with a complex cloud transformation but also more likely to see the value.

Enterprises are also taking a realistic view of the scale of investment needed for a successful cloud transformation: 60% agreed their organization is prepared to measure and manage any increase in costs associated with a complex, multi-cloud environment.

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“Our findings highlight that leaders recognize both the challenges and benefits of a cloud transformation, but cultural shifts are still critical to accelerate the transition and achieve their desired results,” said Lisa Woodley, Vice President, Customer Experience, NTT DATA Services. “Leaders must develop a holistic employee experience strategy to identify and manage people-related challenges, placing end users at the heart of cloud transformation.”

Next-gen cloud leaders are more likely than average to report having developed a cultural change strategy and reorganized teams ahead of transformation efforts, which places them at a significant advantage over competition. In addition, once migration is underway, these leaders also report upskilling the workforce or partnering with a cloud managed service provider to implement changes that allow them to focus on innovation, shorten time to market and realize greater returns on modernization investments.