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Benefits ofCloud MaturityExecutive SummaryCloud Maturity Index 2015

© Tieto Corporation2

Objective of the study

• Create a model to establish individual organizations strategic and operational Cloud maturity.

• Compare average maturity between sectors, industries, countries, organization sizes etc.

• Compare different drivers, barriers, expectations and business outcomes of Cloud usage between organizations with different Cloud maturity.

© Tieto Corporation3

Methodology• Survey and interviews with cloud decision makers in Finland, Norway and Sweden conducted by the research firm

Radar on behalf of Tieto.• The study includes 277 organizations with 250 or more employees (full-time equivalent).• Cloud maturity is determined by a number of key indicators, subjective assessments and self-assessments under six

main areas, weighed differently as below.

Stra

tegi

c

Ope

ratio

nal

50%

30%

20%

30%

30%

40%

© Tieto Corporation4

Average Cloud maturity• On a scale of 0 to 10, the average cloud maturity is 3.5 for strategic and 5.3 for operational.

• The lower strategic cloud maturity demonstrates a "strategy debt”, where a large degree of cloud usage is not aligned with an established strategy .

Strategic maturity Operational maturity

3.5

5.3

Average cloud maturity 2015 (Sweden, Finland and Norway):

0 2 4 6 8 100

2

4

6

8

10

Norway

Finland

Sweden

Strategic

Operational

[3.7, 5.2]

[3.6, 6.6]

[3.0, 3.8]

© Tieto Corporation5

Typical characteristics

Immature There is no cloud strategy at all. Low competence and slim capabilities in dealing with any cloud services. No to very little use of cloud services.

Basic Cloud usage is on single services not integrated with the other IT services and functions provided. Driver for investments is commonly cost reduction. The services tend to be simple and standalone.

Proficient There is a cloud strategy and most of the procured cloud services are in line with it. Most likely more than one service and delivery model implemented. On average multiple SaaS services are being used.

Mature Cloud services are clearly defined and an analysis of existing IT functions in a

cloud setting has been performed. Procurement is fully in line with strategy. Key drivers are development, change and innovation.

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Cloud mature organizations• The top 10 percent in terms of overall maturity is considered "cloud mature organizations".

• Their average strategic maturity is more than twice as high as the average for all organizations and their operational maturity is 77% higher than average.

Operational maturity

Strategic maturity

Average cloud maturity 2015, cloud maturity leading organizations

Study average

9.3

7.6

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Benefits of being cloud mature

34% lower cost of ongoing IT operations

Cloud mature organizations have on average…

2xtwice the proportion of its IT budget available for innovation

30% higher ability to support business development

30% higher flexibility for changing requirement

8% higher ability to proactively contribute to business optimization

17% higher capability to transform how IT is produced/delivered

© Tieto Corporation8

Summary• Extensive use of Cloud services is not a strategy in itself, but a highly likely outcome

of applying a well underbuilt and firmly established strategy.

• Cloud mature organizations use Cloud services more strategically, on a larger scale and in a more diverse way.

• To leverage the full potential and business value of cloud investments, it is critical to achieve a high strategic Cloud security. The "strategy debt” must be addressed.

• Cloud mature organizations are better placed than their non-mature counterparts to meet changing business conditions and technology shifts in the future.

• The result of being cloud mature is a third lower cost of operational IT (“running cost”) together with twice the budget available for innovation (competitiveness)

© Tieto Corporation

For more information: Download the whole study:http://bit.ly/1EGV9pu

Visit www.tieto.com/cloud

and follow us on LinkedInhttps://www.linkedin.com/company/enterprise-cloud-made-simple

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