Cloud computing and spend

An interesting McKinsey read on the state of cloud computing in Europe. Quite surprised that it’s come out in the majority as IT led rather than business driven.

The state of cloud computing in Europe: Increasing adoption, low returns, huge potential

A five-pronged strategy to overcome challenges to capturing cloud value.

McKinsey & CompanyBernhard Mühlreiter

“…almost all European companies have captured the most obvious benefits from their cloud programs, 82 percent recognize that this impact is either limited to specific areas of the business, only partially realized, or still in early stages”

And

“Most companies (71 percent) measure it in IT operational improvements, 66 percent in IT cost savings, and 63 percent in number of applications on cloud. Only about one in three European companies, however, monitors non-IT outcomes, such as cost savings outside IT (37 percent) or new revenue generation (32 percent).”

Recommendations are (obviously) about the need for relationships with CSPs and SIs. I think that’s indeed critical but needs to evolve. Especially after reading about the leaked report from the UK CDDO concerned about vendor lock-in with cloud spend.

Vendor lock-in hurts UK govt ability to negotiate spending

After slew of AWS deals signed under MoUs, CDDO says current approach might weaken its position

The RegisterLindsay Clark