Study: Skills gap halts multi-cloud adoption

Australian organisations’ level of multi-cloud maturity and the related business benefits could be tied to their CEOs’ engagement with the technology, new global research from VMware suggests.

According to the VMware Multi-Cloud Advantage 2022 research report, 35% of Australians surveyed believe the CEO or equivalent is or would be the primary decision-maker when it comes to their organisation’s use of a multi-cloud approach — the third-highest rate in Asia Pacific and Japan (APJ) — with 32% of local respondents saying that their organisation has a fully defined multi-cloud strategy.

The research also found that 57% of Australian respondents think their organisation’s CEO is extremely engaged in their company’s cloud use, while 49% suggest the CEO is or would be involved in the decision-making process when it comes to their organisation’s multi-cloud approach.

Given that 82% of survey respondents from hypergrowth companies across Asia Pacific and Japan (APJ) believe their CEO is extremely engaged in the organisation’s cloud use — compared to 48% of medium-growth companies — VMware’s research indicates that a ‘cloud-engaged’ CEO’s influence on cloud maturity within the organisation leads to positive outcomes for the business.

“The VMware Multi-Cloud Advantage 2022 research report illustrates how an involved CEO can push cloud maturity higher,” said Brad Anderson, Vice President and Managing Director, Australia and New Zealand, VMware.

“This can be the catalyst that drives the company forward to unlock the full potential of multi-cloud. Our cloud-smart CEOs are experiencing business benefits such as revenue acceleration, faster time-to-market and a better employee experience.

“While close to a third of Australian organisations have a clearly defined multi-cloud approach, not all local companies are at this stage. The research illustrates the enormous opportunity for organisations as they grow their multi-cloud maturity,” Anderson said.

The state of multi-cloud maturity in Australia

The research reveals that Australia claims a high proportion of CEOs who are engaged in the decision-making process around their organisations’ cloud use, a factor that may not only help to drive multi-cloud maturity, but also company performance.

• 98% of Australian respondents say the CEO is either extremely or somewhat engaged in their organisation’s cloud use — one of the highest rates of respondents in APJ.
• 49% of Australian respondents indicate the CEO or equivalent is or would be involved in the decision-making process when it comes to their organisation’s multi-cloud approach.
• 72% of respondents from Australia claim that their organisation has a fully or somewhat defined multi-cloud strategy.

Australia faces some challenges to further multi-cloud maturity

While a cloud-engaged CEO has driven many Australian businesses towards multi-cloud maturity, VMware’s research identifies several challenges that are holding some local companies back from advancing their multi-cloud strategies, with the ongoing skills shortage in the country and security two major hurdles.

• 38% of Australian respondents indicate a lack of in-house talent to successfully implement multi-cloud is a challenge they associate with a multi-cloud approach.
• 45% of Australian respondents suggest increased cybersecurity risks are a challenge associated with a multi-cloud approach.
• 43% of Australian respondents say the different skills required for each cloud provider being used is a challenge to a multi-cloud approach.

Australia sees valuable business advantage from multi-cloud maturity

Despite the barriers some Australian organisations are facing when it comes to progressing their multi-cloud approach, VMware’s research suggests that the vast majority (83%) of Australian respondents feel the benefits outweigh the challenges when it comes to their organisation’s multi-cloud today, with data security and profitability two major drawcards.

• 51% of Australian respondents agree that a multi-cloud approach increases security of customer data and 57% agree it increases security of employee data.
• 95% of Australia respondents from private sector organisations say that their organisation’s multi-cloud approach has had a positive impact on revenue growth in the past year, while 95% agree it has had a positive impact on profitability.
• 54% of Australian respondents believe a multi-cloud approach can enhance employee flexibility.

A regional perspective

The report also reveals the state of multi-cloud maturity across the entire Asia Pacific and Japan (APJ) region, showing how Australia compares to its regional neighbours while highlighting the link between a cloud-engaged CEO and hypergrowth, the benefits of a multi-cloud approach and the challenges to a multi-cloud strategy.

• 56% of APJ respondents say that a multi-cloud approach is critical to business success.
• 82% of respondents from hypergrowth companies in APJ claim their CEO is extremely engaged in the organisation’s cloud use, compared to 48% of medium-growth companies.
• 46% of APJ respondents say that their organisation does not have the skills to achieve or properly achieve multi-cloud.
   

The full report is available here.

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