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
MIAMI & LONDON, October 11, 2022 – 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 12% post-migration cost reduction of technology infrastructure.
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% cost reduction of technology infrastructure (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, firstname.lastname@example.org, 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.