Cloud technology has the potential to reinvigorate mid-market companies and positively impact their bottom lines.
With the C-suite becoming more involved in the technology side of business, they are more interested than ever before in research and investment in both the cloud and analytics.
The Rise in the Cloud (By the Numbers)
A May-June 2015 report compiled by Deloitte Growth Enterprise Services proves that executives are taking note of the possibilities associated with the cloud.
To formulate the report, market research firm OnResearch polled 500 mid-market executives with reported annual revenues from $100 million to more than $1 billion. When the results were tallied, 48 percent of participants reported that executives viewed technology as a “critical differentiator and key to growth.”
Perhaps even more telling, 62 percent of mid-market executives reported that C-suite leaders in their companies have “some level of involvement in the adoption of next generation technologies.” When polled specifically about cloud usage, 42 percent of respondents said cloud-computing resources were currently deployed within their company, and 46 percent said the C-suite was “actively engaged.”
Of those polled, 47 percent said analytics had the highest potential for productivity gains, and 43 percent felt the same about cloud applications.
The Benefits of Investing in Cloud
So what does it all mean? Cloud technology can help smaller mid-market companies by allowing them to effectively communicate to customers, clients, and colleagues on a more global scale through cloud videoconferencing and cloud calling applications. As an unequivocal bonus, this reach can be accomplished with fewer large capital expenditures that, in the past, would have been required to attain such exponential growth.
Investing in the cloud is investing in the future of the enterprise, and the C-suite is taking action, while keeping a close eye on cyber security. In fact, fear of sensitive company information getting into the wrong hands is responsible for slowing down cloud tech adoption.
However, security fears aside, more executives see the cloud as a smart business move, since companies need to take advantage of cloud technologies to keep their global reach and stay on top of cutting-edge, collaborative innovations.
What CIOs Need to Know
The CIO’s role in mid-market companies is evolving as more technology is integrated into business strategies. CIOs interested in integrating cloud—or even hybrid cloud, a combination of in-house platforms and cloud infrastructure—into their operations have several things to consider as they begin the phase-in process.
- CIOs need to realize that virtualizing the company systems doesn’t have to occur all at once. Instead, understanding the key components of the overall IT strategy is the necessary first step.
- Once the process starts, cloud applications supporting public-facing areas, such as sales and customer service, should be rolled out first. Next, increase cloud-computing capabilities to include accounting, human resources, and other back-office functions.
- CIOs should have an action plan and put resources into place to handle the support and legal questions that will undoubtedly arise.
- When it comes to analytics, CIOs should appoint leadership wisely, choosing those with a well-honed business focus and a keen understanding of business goals to round out their tech knowledge.
- Analytics work should start as small, prioritized efforts that grow in terms of resources, yet always adhere to the project scope.
- Look for new sources and partners outside the company to help with the expertise needed to completely leverage the advantages of analytics.
For today’s fast-paced, competitive companies, the C-suite knows all too well that investing wisely is the key to growth and profitability. The rise in possibilities for advanced and versatile infrastructure (and even hybrid cloud systems) means more and more mid-market companies are putting money where it counts—in the cloud.
