Cloud

Accenture launches $3B investment to enable clients in cloud-first strategy

Accenture, a multinational professional services and technology firm, is seeding $3 billion in a span of three years for the development of the Accenture Cloud First business. The move is to enable organizations easily and rapidly adopt a cloud-first approach, which has become even more essential in the sudden digital shift due to the pandemic.

Accenture Cloud First is a new multi-service group of 70,000 cloud professionals that brings together the breadth of Accenture’s industry and technology capabilities, ecosystem partnerships, and deep commitment to learning and upskilling clients’ employees.

This new group integrates the company’s wide-ranging cloud expertise, including cloud migration, infrastructure, and application services and ecosystem partnerships; deep industry and cross-industry insights, data and Applied Intelligence capabilities; Accenture Interactive’s leading experience design skills; and insights from the company’s unmatched experience in modernizing and operating large IT estates and key business processes across finance, HR, marketing, supply chain and specific industries for leading global companies. This operational experience at scale is critical to ensuring companies realize value from their cloud and digital transformation. Edge computing, integrated with the cloud, also will be a key focus area.

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Technology industry veteran Karthik Narain is tasked to lead Accenture Cloud First and join the Global Management Committee, effective Oct. 1. Accenture records an approximately $11 billion in cloud revenue in its fiscal year 2019.

Cloud as a foundation

“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 — and that a better future for all requires,” said Julie Sweet, chief executive officer, Accenture. “Accenture Cloud First and our substantial investment demonstrate our commitment to delivering greater value to our clients when they need it most. Digital transformation requires cloud at scale, and post-COVID leadership requires that every business become a ‘cloud first’ business.”

The announcement comes as worldwide demand for cloud computing has skyrocketed due to the COVID-19 pandemic. According to Gartner, the worldwide public cloud services market is forecast to grow 6.3% in 2020 to total $257.9 billion, up from $242.7 billion in 2019.

“When the COVID-19 pandemic hit, there were a few initial hiccups but cloud ultimately delivered exactly what it was supposed to,” said Sid Nag, research vice president at Gartner. “It responded to increased demand and catered to customers’ preference of elastic, pay-as-you-go consumption models.”