Accenture is placing a $3 billion bet on expanding cloud options for its clients that have been impacted by the ongoing COVID-19 pandemic.
The bet is on Accenture’s Cloud First group. This new organization will include 70,000 employees and integrate Accenture’s experience with cloud migration, infrastructure, application services, and ecosystem partners. Those partners include Amazon Web Services (AWS), Microsoft Azure, Google Cloud Platform (GCP), Alibaba Cloud, IBM, and Oracle.
The new group’s focus will be on providing clients with access to Accenture’s breadth of services to help them more quickly migrate their operations to the cloud. The firm noted a specific focus on integrated edge computing into the cloud.
The group will be led by Accenture’s own Karthik Narain. The exec is based in Silicon Valley and most recently served as the lead of Accenture’s North America Technology operations. Narain will also be joining Accenture’s Global Management Committee.
Accenture said the $3 billion investment will be spread over a three-year period. That should be a safe investment as Accenture generated $11 billion in cloud revenues for its most recent fiscal quarter. That revenue stream runs through more than 100,000 Accenture employees and its Intelligent Platform Services software-as-a-service (SaaS) offering as well as its migration, infrastructure, and application cloud services.
Accenture’s cloud business was placed in the “leaders” quadrant of Gartner’s most recent ranking of “Public Cloud Infrastructure Professional and Managed Services.” Others in that group include Deloitte, Capgemini, and Wipro.
Gartner predicts that the worldwide public cloud services market will grow 6.3% this year to nearly $258 billion.
Accenture Cloud's COVID-19 AngleAccenture said the move comes as the ongoing pandemic has placed a greater emphasis on organizations being able to quickly migrate their operations to the cloud. The firm noted that most businesses currently only have around 20% of their operations in the cloud and increasing that push will require a concerted effort.
“COVID-19 has created a new inflection point that requires every company to dramatically accelerate the move to the cloud as a foundation for digital transformation to build the resilience, new experiences and products, trust, speed, and structural cost reduction that the ongoing health, economic, and societal crisis demands,” Accenture CEO Julie Sweet in a statement. “Digital transformation requires cloud at scale, and post-COVID leadership requires that every business become a ‘cloud first’ business.”
Sid Nag, research VP at Gartner, did note in the Accenture press release that the cloud market experienced a “few initial hiccups” when it came to dealing with the COVID-19 pandemic, but that it “ultimately delivered exactly what it was supposed to.”
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