What’s driving industry cloud migration?

The pace of cloud adoption is speeding up and businesses have  an increasingly sophisticated view of the cloud’s benefits. But what issues are driving companies down the path to value?

Which of the following are most affecting your business today? Select up to three. Click to enlarge.WindstreamQ11As you can see in the chart of our total respondents, technology change is a top factor affecting businesses today. This is especially pronounced in government/education, retail, and financial services firms—48% of respondents from those industries said technology change is the top factor affecting their industries.

Legislative changes like the Affordable Care Act are having a pronounced effect on the healthcare industry—47% of respondents from that industry said increasing regulatory requirements were affecting their businesses, followed closely by economic uncertainty at 45%.

Professional services firms are an outlier—the top factors affecting that industry  are greater supply chain complexity (39%) and economic uncertainty and economic uncertainty (36% each). Product obsolescence is also significantly affecting more professional services businesses—28% vs. 17% of the total respondent pool.

 

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Cloud strategy varies by industry

Cloud migration brings benefits across the value chain, but different industries see things differently. As you can see in the chart of the total respondent pool below, almost a third of respondents say new geographical markets or lines of business are driving growth.

Q12. Which strategic initiative is most important to driving growth at your firm? Select one.WindstreamQ12

 The story is different for retail, where 29% of respondents say operational efficiency is driving strategic growth. Healthcare, on the other hand, is significantly more driven by new geographical markets (44%). Professional services lies on the other end of the spectrum—only 20% said that new geographies were driving growth.

While financial services also value these growth drivers, a healthy 26% say that new product and service development within existing lines of business are driving growth. Government/education organizations are the least likely industry to have strategic growth driven by new product and service development—only 16% of respondents said that was so.