Digital transformation is on the mind of every CIO, and tech decision-makers are looking to migrate to the cloud for a variety of reasons, ranging from perceptions of the mainframe being outdated to reduced costs and increased productivity. Unfortunately, 451 Research found that 60 percent of enterprises had no digital transformation plan in place, pushing for digital transformation before they are ultimately ready.
A recent IDC study found almost half of IT spending will go toward cloud services in 2018, reaching 60 percent of all IT infrastructure and 60-70 percent of all software, services and technology spending by 2020. At this point in the digital age, few organizations are resisting the change as even the most traditional industries, like insurance, are incorporating digital transformation into their core business strategies. Even though the insurance industry has relied heavily on data centers for decades, a commissioned study conducted by Forrester Consulting on behalf of Ensono found that 70 percent of insurers are pushing to go digital in 2018.
Just last month, Walmart made the decision to sign a five-year cloud deal with Microsoft, citing digital transformation needs and talent acquisition as the top priority. In this case, with two million employees, ten thousand brick-and-mortar stores, a daily revenue of $1.37 billion and a booming e-commerce business, this decision has the power to increase innovation by better equipping the retail giant to analyze the real-time data created by its sales. With announcements like Walmart’s being made left and right, it’s easy for organizations to feel the pressure to move to the cloud or risk falling behind competition.