Home Cloud ROI on cloud expenditures is still not entirely measurable.

ROI on cloud expenditures is still not entirely measurable.

Despite delays in realising financial benefits, businesses are satisfied with cloud adoption and are reaping the benefits of digital transformation.


According to a recent analysis by advisory firm KPMG, the majority of businesses have benefited from cloud migration, even though those gains haven’t had a significant effect on balance sheets.

  • According to a poll of more than 1,000 enterprise technology leaders, four out of five respondents said cloud adoption had been a success, and two-thirds claimed they had advanced business strategy through cloud.
  • Returns are hard to come by. The majority of respondents—2/3—said they have not yet saw a sizable return on their cloud investments.


Adoption of the cloud is nuanced, with layers of incremental success across corporate goals.

Some benefits manifest more quickly and easily than others as the gains accumulate over time.

According to Marcus Murph, principal at KPMG and leader of the CIO advisory business, ROI is a long-term goal that comes second to improvements in speed and agility.

I have to completely modify my speed and agility if I’m fighting against the next company in a garage in Silicon Valley, he said.

Nearly 90% of businesses have progressed levels of cloud adoption, and a third have surpassed goals and seen significant returns on investment.

However, 42% claimed that their cloud implementations were running late.

A portion of the installation and ROI delays, according to Murph, can be attributed to the up-front costs of converting on-premise legacy systems. Many businesses did not anticipate how challenging that procedure would be.

Because some of their workload applications are significantly more difficult than they anticipated, it’s not as simple as they previously believed, according to Murph.

A persistent shortage of technologists has emerged as another unanticipated impediment.

According to 44% of respondents, the biggest barrier to modernization is a lack of tech talent. Three out of ten respondents claimed that internal talent deficiencies were delaying the implementation of new technology.

The gap has been closed by outsourcing to managed service providers, however this causes a new issue.

Many CIOs and IT executives have stated that there aren’t many developers or engineers who truly wear their company’s badge, according to Murph. You are in a difficult situation because you might not have the skills you need to build the next thing on your payroll.

The cost line should start to decrease as you optimise, as well as as you spend less on migration and hands-on modernization, according to Murph.

The good news for CIOs planning for 2023 is that IT spending shouldn’t be reduced.

According to a new budget prediction by Spiceworks Ziff Davis, expenditure on the cloud is anticipated to go down a little bit while still accounting for about one-quarter of all IT budgets.

Murph claims that the story is far from being finished. I consider it to be a baseball game, he added. “There are six more innings to play after the third one. There will be differences between the third, fourth, and fifth innings from the first few.

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