As Cloud Becomes the Norm, a New Study from The Hackett Group Quantifies Broad Business Value Beyond Cost, Including Increased Innovation, Faster Time to Market and Enhanced Cybersecurity
October 11 2022 - 10:00AM
Business Wire
Cloud is quickly becoming the corporate norm, and is being used
by companies to drive dramatic improvements beyond cost and
scalability, including increased innovation, faster time to market
and insights and enhanced cybersecurity, according to a global
Cloud Services Study recently completed by The Hackett Group, Inc.
(NASDAQ: HCKT).
The Hackett Group® study, which examined results from more than
1,000 organizations and looked at more than 2,500 migrated
applications in 15 different categories, found that 70% of all
technology infrastructure will be cloud-based within two to three
years. Typical companies are seeing post-migration reduction in
technology infrastructure costs of 12%.
Other significant benefits include:
- A 36% increase in developer time devoted to innovation
- A 45% reduction in time to market for new product features and
functionality
- A 53% reduction in the time to achieve actionable insights from
data
- A total of 44% fewer security and other critical infrastructure
incidents
- A 52% average reduction in downtime
Top performers in the study saw even more dramatic benefits,
including a 37% reduction in technology infrastructure costs (more
than 3X typical companies) and an average of 15 percentage points
greater improvement across nearly a dozen objectives tracked in the
study.
According to The Hackett Group Principal Michael Fuller, “This
study was designed to look beyond the hype and truly quantify the
benefits of both moving to the cloud and maximizing the benefits of
cloud infrastructure. And the results clearly show that companies
are using the cloud to deliver broad strategic value. It’s about
better security, improved speed, quality and agility. At its best,
cloud migration can be the foundation that allows companies to
rapidly improve their products and services.”
The Hackett Group Principal Michael Spires added, “We also came
to conclusions about the differences between typical companies and
top performers. To truly drive the maximum benefit, top performers
make the cloud part of their operating DNA and treat it as a core
competitive strategy. They reject the easier application
‘lift-and-shift’ cloud migration approach. Instead, they assess
their workloads to determine the proper migration methodology and
focus on optimizing them in the cloud, which often means
rearchitecting or redesigning their systems and processes to
maximize the advantage of what the cloud can offer.”
The Hackett Group released the study as part of the launch of
its new Cloud Value Assessment Services Offering, a service
designed to help companies understand how to optimize the
management of current applications in the cloud and future
migration to the cloud. The assessment leverages The Hackett
Group’s detailed performance metrics and benchmark taxonomy and
takes just four weeks, as little as one-third of the time of a full
benchmark assessment to complete.
A public overview of the study results, “The State of Cloud
Adoption by the Numbers,” is available on a complimentary basis,
with registration, at http://go.poweredbyhackett.com/ca2205sm.
The Hackett Group’s Cloud Services Study was completed in
December 2021. The study is designed as the first step in a
five-year investigation designed to help companies understand cloud
migration and ongoing management of costs, value, performance and
experience.
About The Hackett Group
The Hackett Group, Inc. (NASDAQ: HCKT) is an intellectual
property-based strategic consultancy and leading enterprise
benchmarking firm to global companies, offering digital
transformation, including implementation of leading enterprise
cloud applications, workflow automation and advanced analytics that
enable Digital World Class™ performance.
Drawing from our unparalleled IP from nearly 20,000 benchmark
studies with the world’s leading businesses – including 97% of the
Dow Jones Industrials, 94% of the Fortune 100, 70% of the DAX 30
and 51% of the FTSE 100 – captured through our leading benchmarking
platform, Quantum Leap® and our Digital Transformation Platform
(DTP), we accelerate best-practice implementations.
More information on The Hackett Group is available at:
www.thehackettgroup.com, info@thehackettgroup.com or by calling
(770) 225-3600.
The Hackett Group, quadrant logo, World Class Defined and
Enabled, Quantum Leap, Digital World Class and Hackett
Excelleration Matrix are the registered marks of The Hackett
Group.
Cautionary Statement Regarding “Forward-Looking”
Statements
This press release contains “forward-looking statements” within
the meaning of the Private Securities Litigation Reform Act of 1995
and involve known and unknown risks, uncertainties and other
factors that may cause The Hackett Group's actual results,
performance or achievements to be materially different from the
results, performance or achievements expressed or implied by the
forward-looking statements. Factors that impact such
forward-looking statements include, among others, the impact of the
coronavirus pandemic, including the duration and severity of the
pandemic, the economic impact of the pandemic and the timing of an
economic recovery, demand for our services, our ability to manage
our business and capital resources through the pandemic, the
ability of our products, services, or offerings mentioned in this
release, including the Cloud Value Assessment Services Offering, to
deliver the desired effect, our ability to effectively integrate
acquisitions into our operations, our ability to retain existing
business, our ability to attract additional business through
strategic initiatives or otherwise, our ability to effectively
market and sell our product offerings and other services, including
those referenced above, the timing of projects and the potential
for contract cancellations by our customers, especially given that
our clients are also impacted by the pandemic, changes in
expectations regarding the business consulting and information
technology industries, our ability to attract and retain skilled
employees, the impact of any federally-mandated vaccine, testing or
other COVID-19 related requirements on employee retention and our
results of operations, possible changes in collections of accounts
receivable due to the bankruptcy or financial difficulties of our
customers, risks of competition, price and margin trends, foreign
currency fluctuations, the impact of the geopolitical conflict
involving Russian and Ukraine on our business, changes in general
economic conditions, inflation and interest rates, our ability to
obtain additional debt financing if needed, as well as other risks
detailed in our Annual Report on Form 10-K for the most recent
fiscal year as filed with the Securities and Exchange Commission.
We undertake no obligation to update or revise publicly any
forward-looking statements, whether as a result of new information,
future events or otherwise, except as required by law.
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version on businesswire.com: https://www.businesswire.com/news/home/20221011005276/en/
Gary Baker, Global Communications Director - (917) 796-2391 or
gbaker@thehackettgroup.com
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