Over the last couple of years, we’ve seen a growing appetite for re-platforming within enterprise customers. By this, we mean changing the core IT platforms that support the business to adopt cloud (and in some cases) better, more flexible cloud solutions. So, a shift of applications to SaaS-enabled variants and applications residing in a hybrid environment. COVID has strengthened this desire, as the initial emergent reaction to the pandemic has given way to the new normal.
While some residual fear and uncertainty surround many markets and industries at the moment, there is little doubt that the cloud market and the appetite for cloud services has increased significantly. The initial post-COVID scramble to enable remote working and decentralize processes has given way to corporate concerns about business resiliency with a strengthening of the prevailing wind—a doubling down on the re-platforming efforts and a shift to cloud-centric IT.
Accenture’s announcement (Accenture press release) to invest $3Bn in its cloud business and organize its cloud staff in one 70,000 strong team “Accenture Cloud First” – looks to leverage this opportunity. A smart services company needs to be in tune with changes in customer demand and react quickly. This is what Accenture is telling its customers with this announcement. This is probably more important than the money it is spending.
According to Julie Sweet, CEO Accenture, the $3Bn investment will be spent in three main areas:
- Acquisitions. Accenture is has already been very acquisitive in the cloud and digital space, so it’s no surprise that this will continue. The focus will be on expanding talent in new and rapidly growing markets, like Australia, and adding talent in key cloud areas like automation.
- Technology and industry solutions. Again, Accenture has invested a great deal in tools and technology in cloud already with platforms like the Accenture Cloud Platform (ACP), myNav and myWizard. Additionally, Julie Sweet specifically mentioned investing in data and data maps. Presumably to drive understanding of best practice and to apply it correctly in an industry context.
- Talent and sustainability. Accenture already spends approx. $1Bn on training internally, as it reskills its people. The exciting part of this is sustainability. Accenture is looking at building tools to help clients make more ethical and sustainable solutions – examples being a platform that looks at the integrity of customers’ supply chain partners and tools that show the impact on carbon footprint of moving to the cloud.
To a degree, this is more of the same from Accenture, but that is not a bad thing given they have been at the forefront of the cloud professional services market for the last decade – they’ve already invested 10s of billions in all of the areas above. What’s significant about this announcement is the message it sends to its customers: “We understand your priorities, and we are continuing to invest in our capabilities to help you make them happen.”
