Technology, media and telecom (TMT) companies are using cloud solutions to build the foundations of long-term growth. More than companies in other sectors, our PwC US Cloud Business Survey finds that they’re realizing substantial value from cloud for data-driven decision-making. They, along with the health sector, are more likely to see meaningful returns in product and service innovation.
This success reflects TMT cloud priorities. Many executives across the sector (not just the handful of cloud hyperscalers) were first movers in identifying cloud solutions’ potential to transform existing lines of business and create new ones.
Q: To what extent have you realized value in those areas to date? Substantial value Source: PwC US Cloud Business Survey June 15, 2021: Total 524, TMT leaders 82
As with any transformational technology, however, the challenge lies in extracting breadth of the value. Even though TMT companies are ahead of their counterparts in many sectors, they do encounter some hurdles. The main barrier TMT executives cite is poor integration with existing systems and data (50%), followed by governance challenges (47%), cybersecurity and privacy issues (43%), lack of upskilling (40%) and lack of talent (39%).
Because cloud transforms how an entire company operates, integration and governance challenges are common.
Going forward, top cloud priorities for TMT companies are artificial intelligence and hybrid cloud (both cited by 41% of TMT CIOs), necessitating improved integration and cloud-specific cybersecurity.
The skills shortage isn’t going away either — and could result in the next digital divide. Companies that don’t address both the tech skills shortage as well as the broader impact on how people perform their jobs may find themselves on the wrong side. Still, only a little over half of TMT executives (55%) report having upskilling programs able to develop the cloud-related abilities they need, and only 11% are finding substantial success using cloud for talent retention and recruitment.
Looking ahead, we expect the key to cloud success will continue to be a business-first approach — finding cloud solutions for digital revenue streams, smarter ways of working, superlative customer experience and accelerated deal synergies.