Managed Services: Achieving Better Outcomes in the Cloud
Accenture Cloud First Leader Andy Tay discusses common cloud adoption challenges and how to overcome them
By Jennifer Goforth Gregory
How Managed Services Boost Cloud Outcomes
Accenture Cloud First Leader Andy Tay discusses common cloud adoption challenges and how to overcome them
By Jennifer Goforth Gregory
Recent Accenture research found some companies that have built a mature, cloud-based digital core, combined with investments in innovation and a balanced approach to managing technical debt, achieved a 60% higher revenue growth rate and 40% higher profits. However, these leading companies aren’t realizing these gains just because they're using cloud technology. The simple task of using the cloud as a piece of technology or approaching migrating to the cloud as a “check-the-box” task doesn’t bring these impressive results.
It’s about approaching cloud as a foundational element in a deeply integrated set of technology capabilities that include data, AI, security, digital platforms and more (i.e., the digital core). With these elements in place, organizations can quickly embrace new technologies and secure first-mover advantages, which gives them the agility needed to continually reinvent themselves and maintain a competitive edge.
“These companies are not just inching ahead; they’re leaping forward compared to others. At these businesses, cloud-based infrastructure isn’t just a piece of technology—it’s the heart of the company’s digital core. This core is crucial—it's where a company’s unique vision for reinvention comes to life,” says Andy Tay, global lead for Accenture Cloud First, a multiservice group that provides a full stack of cloud services and solutions. Tay shapes Accenture’s thinking on cloud-based business innovation and works with ecosystem partners to invest in capabilities, solutions, acquisitions and talent.
Some companies have achieved:
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Challenges of Cloud Adoption
While companies can experience transformative benefits, many never realize the full potential of their cloud infrastructure. Organizations often successfully complete cloud migration but struggle to use the cloud as more than a destination for applications and data.
Misalignment Between IT and Business ⟶
Misalignment Between IT and Business
Organizations often cite boosting productivity and business performance as their reason to move to the cloud. However, they need to take it a step further and align cloud technology with the organization’s business strategies and goals, supported by an operating model built to exploit cloud’s advantages. By linking technology with business outcomes, organizations can more easily measure KPIs.
Complexity of Business and Operational Changes ⟶
Complexity of Business and Operational Changes
Organizations often focus on the technical aspects of cloud migration. However, the companies seeing the best results view the process as a fundamentally new way of working by spotlighting change management for both the technologies and the processes. With a human-centric approach focused on investing in training and education, leaders can truly get their team on board by focusing on the benefits.
Security and Compliance Risks ⟶
Security and Compliance Risks
Accenture research found that security and compliance risk was one of the top concerns among organizations moving to the cloud. Businesses must reimagine their approach to security with a new model that will harness the capabilities of cloud-native solutions. By changing the core security guiding principles and rules around the updated cloud-based infrastructure, organizations can embed security throughout every cloud-based application and process.
How to Maximize the Value of Cloud Infrastructure
Organizations need to do more than just keep up with the market and their competitors. By focusing on creating a digital core—which creates and empowers the organization’s unique reinvention ambitions—businesses can begin continuously reinventing and unlocking new sources of value.
“To achieve the full potential of the cloud, it’s important to develop a strategy that serves as a north star, with a vision that clearly states the core values and future aspirations, identifies potential vulnerabilities and risks, and takes into account all existing capabilities to set a benchmark,” says Tay.
With the digital core in place, for increased revenue and profits, the next step is optimizing cloud technology. For companies looking for speed, predictable outcomes and comprehensive business value, putting cloud technology at the foundation of all business processes is key for success. However, the level of growth a company realizes depends on the implementation, not simply adoption.
Here are five best practices for using cloud technology:
Reimagine
1. Pursue business and industry advantages.
The first step for businesses starting their cloud journey is to prioritize use cases for the cloud with an attainable time to value. Next, organizations should align cloud investments with business strategies to enhance outcomes. With these in place, companies can then begin the process of using the cloud to transform the organization.
2. Design and orchestrate in the cloud continuum.
Organizations often view the cloud as a single destination. This perspective causes the decision of what type of cloud to use to become a roadblock. By viewing the cloud as an operating model, businesses can adopt the optimal mix of technologies and services—across public, private and edge computing—to more effectively meet the organization’s business needs. Once a candidate is identified, refactoring extracts a specific COBOL application into a COBOL business service.
Pursue advantages
Reimagine
3. Unleash new value from data and AI.
AI is the top area companies report wanting to invest in, yet companies must move to the cloud to unlock AI’s full potential. Cloud infrastructure provides the foundation for data to gain scale, agility and the power to drive AI innovation and reinvention. By generating the right insights across the enterprise and adopting mature AI, organizations move toward significant and sustainable growth.
Pursue advantages
Design
4. Reimagine your operating model and people.
Moving to the cloud isn’t just about purchasing and deploying new technology. A cloud-first mindset for all business decisions is key to success. Businesses must simultaneously transform their organizational structures, ways of working, processes and culture.
Pursue advantages
5. Master cloud economics.
Organizations must control and optimize their cloud-related spending. With transparency, oversight and refocusing the conversation, businesses can gain the most value from their investment. Realizing the full value of your cloud investments requires a commitment to continuous reinvention—using cloud-first technologies such as automation and self-service to forge a path forward.
Supporting Cloud Transformation With Managed Services
The rise of trends like hybrid cloud, GenAI, edge and decentralization is placing new demands on infrastructure. Today’s complex IT environments often include a mix of on-premises, public, private edge deployments and containerized apps, and organizations typically struggle to manage these environments with legacy tools and methods. Additionally, team members often lack the necessary skills and expertise to design and maintain the most efficient environment.
“Organizations don’t have to face this complexity alone. Especially as more mission-critical business applications and services are brought into the cloud, managed services providers can act as a partner and accelerator to remove barriers, drive innovation and deliver against business goals,” says Tay.
According to another Accenture study, almost half (45%) of companies that are fully achieving their expected cloud outcomes work extensively with managed services. Managed services providers (MSPs) bring in the most up-to-date skills, processes and tools needed to operate efficient cloud operations, including skills and experience in more niche industries or functions. Because MSPs work closely with hyperscalers—sometimes even co-developing solutions—organizations that work with them position themselves to keep pace with the latest technological advancements. Many businesses find that they save significant time and money with MSPs over developing the expertise in-house.
Source: Accenture: The race to cloud
Getting the most out of managed services requires a strategic approach.
Organizations should start by assessing where they are in their modernization journey. Consider key parameters such as hybrid cloud maturity, automation maturity, agility and user experience.
Next, begin building a partnership with a managed services provider that aligns with your organization’s big picture visions. Look for a provider that deeply understands your industry and can drive innovation with the latest skills and technologies.
With these two key pieces in place, companies can enable an enterprise-wide transformation. Throughout the journey, use an “operationalize, accelerate and modernize” approach at each step.
“Think of cloud not just as a place to store data, but as a dynamic operating model. This perspective enables organizations to expand data access and spur innovation, pushing them closer to both operational and financial objectives,” says Tay. “They’re transforming day-to-day business operations, advancing knowledge work and modernizing applications to meet evolving business needs.”