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Article – McKinsey Quarterly
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You might think that cloud merely optimizes IT. But 75 percent of cloud’s predicted value comes from boosting innovation.
It’s the innovation
The latest forecast calls for industries to capture billions in value from cloud. But not every company will join in the profits.
Cloudy with a chance of billions
In this edition:
A quick briefing in five—
or a fifty-minute deeper dive
Wasted
Will your company join in? Some companies already struggle with their investments.
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Cloud’s trillion-dollar prize is up for grabs
Value differs
But while cloud promises an average rise in EBITDA of more than 20 percent across industries, some industries will profit more than others.
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The sources
To guide investments in cloud, put people and resources against cloud’s primary sources of value.
Cloud’s trillion-dollar prize is up for grabs
Article – McKinsey Quarterly
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Responding to the great acceleration requires companies to experiment with and invest in new digital technologies.
Making the cloud pay: How industrial companies can accelerate impact from the cloud
Article
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Making the cloud pay: How industrial companies can accelerate impact from the cloud
Article
The CEO’s role
Taking advantage of cloud may also require CEOs to intervene with their top team.
Cloud’s trillion-dollar prize is up for grabs
Article – McKinsey Quarterly
Dive deeper
Value of cloud by core components, $ billion
$430
Rejuvenate
IT cost optimization
Risk reduction
Core operations digitization
$770
Innovate
Innovation-driven growth
Faster product development
Hyper-scalability
Oil & gas
Retail
Insurance
Banking
Telecom
Chemicals
Healthcare systems & services
Automotive & assembly
Pharmaceuticals & medical products
Media & entertainment
Electric power & natural gas
0
Average
20–34
100
Range
29–60
31–53
35–74
43–70
13–17
31–54
12–19
9–19
12–18
10–18
5–7
EBITDA impact as a share of 2030 EBITDA, selected industries, %
30
23
47
Cloud spending is wasted
Cloud spending is over budget
Cloud spending growth is expected next year
Views of cloud spending, % of respondents
Estimated 2030 EBITDA run-rate impact by value driver, $ billion
IT cost optimization
Improved resilience
Implementation of latest tech
Innovation-driven growth
Cost savings in business operations
Total
Adoption of emerging tech
Rejuvenate: 340–430
Innovate: 360–770
Pioneer
70
170
100–190
50–160
310–610
700–1,200
Not estimated; premature
to estimate value in 2030
Low case
High case
Cloud’s trillion-dollar prize is up for grabs
Article – McKinsey Quarterly
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With the CIO
Build a cloud-ready infrastructure and develop a new business-technology operating model, together with the business-unit heads, that exploits cloud for speed, agility, and efficient scalability.
With the CFO
Establish a sustainable funding model to support the investments required to get business value from cloud.
With the CHRO
Put in place the HR, compensation, and location policies required to attract and retain the specialized engineering talent required to operate in cloud.
With the business-unit heads
Demand higher business performance in return for cloud investment—no more deflecting blame for subpar outcomes to a subpar technology environment.
Three actions CEOs can take to get value from cloud computing
Article – McKinsey Quarterly
Three actions CEOs can take to get value from cloud computing
Article – McKinsey Quarterly
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