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Accelerating-Cloud-Transformation-for-the-Middle-Market

<br>As a leader in your industry, you understand the importance of staying ahead of the curve in todayu2019s rapidly evolving digital landscape. In this eBook, we bring valuable insights from a recent survey from the National Center for Middle Market (NCMM) and Google Cloud on the state of cloud technology in the middle market. We also provide actionable strategies to help you accelerate business transformation using cloud technologies, based on the results of the survey.

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Accelerating-Cloud-Transformation-for-the-Middle-Market

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  1. Accelerating CloudTransformation fortheMiddleMarket InsightsIntotheStateofCloudTechnology intheMiddleMarketSegment

  2. Contents 03 05 06 07 08 09 11 ExecutiveSummary CloudTechnologyintheMiddleMarket–5KeyInsights Insight#1–CloudTechnologyisCriticallyImportant Insight#2–TheMiddleMarketisSeriousAboutCloudTransformation Insight#3–DataSecurityisaCriticalFactor Insight#4–Fast-GrowingCompaniesInvestMoreintheCloud Insight#5–CloudInvestmentsExceedExpectations CloudTransformationStrategiesforMiddleMarketBusinesses 13 HowOnixCanHelp

  3. ExecutiveSummary Withannualrevenuesrangingfrom$10millionto$1billion,U.S-basedmiddlemarketbusinessesaccount forover60%ofalljobsintheprivatesector.Themiddlemarketaccountsforover200,000businesses acrossindustrysegments.Herearesomemoreinterestingstatisticsaboutmiddlemarketbusinesses: 80%oftheseenterprisesgenerateannualrevenuesbetween$10and$50million–while9% generaterevenuesbetween$100millionand$1billion. 91%ofmiddlemarketcompaniesareprivatelyownedcompaniesand37%arefamily-owned. 70%oftheenterprisesin2022reportedbetterbusinessperformancethanthepreviousyear. REVENUEGROWTH EMPLOYMENTGROWTH CAPITALINVESTMENT CONFIDENCE 12.2% 11.1% 73% PAST12MONTHS PAST12MONTHS GLOBALECONOMY 4.4% S&P500 1.6% SMALL BUSINESS 5.1% LARGE BUSINESS 55% WILLINVEST 74% NATIONALECONOMY 10.0%10.0% NEXT12MONTHSNEXT12MONTHS 86% LOCALECONOMY AccordingtoHarvardBusinessReview, middle-marketbusinessescomprise3%ofallU.S-basedbusinesses–but contributetoone-thirdofallprivatesectorGDPandemployment. 1NationalCenterforMiddleMarket(NCMM)Research

  4. IncollaborationwithGoogleCloud,theNationalCenterforMiddleMarket(NCMM)conductedarecent survey on the state of cloud technology in the middle market. NCMM performed this survey on 406 decision-makerswithcloudtechnologyexpertise.ThissurveywasperformedbetweenSeptember19th toOctober5th,2022. Surveyrespondentmakeupbyindustryandsize Healthcare/ Tech/ LifeSciences HighTech $2.5MMto<$100MM 13% 23% 24% Retail 13% 18% Financial Services/ FineTech 41% 15% ProfServices $500MMto<$1B 18% 35% Manufacturing usiness leaders in middle market enterprises need to focus on accelerating their business transformationusingcloudtechnologies.Whatisthecurrentstateofcloudtechnologyinthissegment? ThiseBookhighlightsthemincompletedetail–alongwithkeyinsightsgainedfromtheNCMMresearch study. Businessleadersinmiddlemarketenterprisesneedtofocusonacceleratingtheirbusi transformationusingcloudtechnologies.Whatisthecurrentstateofcloudtechnolog ThiseBookhighlightsthemincompletedetail–alongwithkeyinsightsgainedfromthe study.

  5. CloudTechnologyintheMiddleMarket 5KeyInsights Intheageofremoteworking,cloudisplayingacriticalroleinthedigitaltransformationofthemiddle marketsegment. Asmorebusinessesembarkontheirdigitaltransformationjourney,theyarelookingtoinvestincloud capabilitiesthatcanmaketheirbusinessmoresecure,efficient,andproductive. NCMMsurveyedcloudusersacrossindustriestogetanswerstothefollowingbusiness-related questions: Whatisdrivingthegrowingusageofcloudtechnologies? Whatarethebusinessbenefitsofcloudtransformation? Whatarethemajorchallengestocloudadoption?

  6. Insight#1 Cloudtechnologyiscriticallyimportant Thesurveyfoundthat87%ofcloudusersbelievethatcloudusageismoreimportantthanotherbusiness strategies.Amongnon-cloudusers,thispercentagewasstillhighat77%.Middlemarketcompaniesdo notviewthecloudmerelyasacost-effectivesolutionfortheirdatastorage. Besidesstorage,cloudserviceslikedataanalytics,clouddatabases,andAI&machinelearningare rankedas"extremelyimportant"services.Here'sabreakdown: Storage,dataanalytics,anddatabaseareviewedas themostimportantcloudservices Storage 2% EXTREMELY/VERYIMPORTANT SOMEWHATIMPORTANT NOTVERY/NOTATALLIMPORTANT Nearly50%ofthesurveyedcompanieswere“cloudnative”meaningtheyalwaysusedthecloudright frominception.While43%havealwaysusedthecloud,8%haveusedthecloudfor5years(ormore)and 33%usedthecloudbetween2to5years.

  7. Insight#2 Themiddlemarketisseriousabout cloudtransformation Accordingtothesurvey,49%ofmiddlemarketbusinessesbelievecloudadoptiontobestrategic–while 35%considerthecloudtobetransformational.Only16%viewitassimplytactical.Thismeansthatfew companiesarelookingtosimplymigratetheirprocessesandapplicationstothecloud.Theyareserious aboutthebusinessbenefitsofcloudadoption. STRATEGIC Strategic 49% Changingourapproachwithoutcompletely restructuring and redesigning. Increasing the valuedeliveredbyourITorganization,requiring moreevolutionofpeopleandprocesses. TRANSFORMATIONAL Inventinganewapproach-takingour business/domainknowledgeandcombiningit withtechnologytodevelopnewwaysof working. Transformational 35% Tactical 16% TACTICAL Takingwhatwehavetodayandmovingitonto thecloud.ReducingcostwithquickROIand minimaldisruptiontoourITorganization 50%ofcloudusersinthemiddlemarketsegmentconsiderthecloudtobeanecessity,while42%regard thecloudasagame-changerforimprovingbusinessperformanceandachievingbusinessgoals.

  8. Insight#3 Datasecurityisacriticalfactor Middlemarketcompanieshaveamixedperceptionofdatasecurityoncloudplatforms.Thesurveyfound that52%vieweddatasecurityamongthe"pros"ofcloudusage–while25%viewedthecloudasabarrier todatasecurity.49%oftherespondentsseedatasecurityasthebenefitofcloudadoption. Whenchoosingtherightcloudserviceprovider,50%ofthecompaniesregardedsecurityasthemost criticalfactor.Comparatively,selectioncriterialikeeaseofimplementationandcloudfeaturesrankedat lowerpriority.

  9. Insight#4 Fast-growingcompaniesinvestmore inthecloud Thefastest-growingmiddlemarketcompanieswerefoundtobetheheaviestusersofthecloudplat- form.Nearly50%oftheirITbudgetisallocatedtocloudtools–whiletheaveragespendingwasaround 39%. Percentofoverallcloudintegration Fastgrowingcompanies(10%+revenuegrowth) 53 Slowergrowingcompanies(1−9%revenuegrowth) 37 Static/declininggrowthcompanies(0%ornegativerevenuegrowth) 25 Thebest-performingmiddlemarketbusinesseswerealsofoundtointegratethecloudacrossbusiness functionsasfollows: Administration(46%) Finance(49%) Operations(51%) Computing(56%) Dataanalytics(58%) Similarly,thefastest-growingcompaniesallocated35%oftheircloudbudgettodevelopingorinvesting incloudsolutions–while32%ofthebudgetwasinvestedindatamigrationandrefactoring.

  10. Insight#5 Cloudinvestmentsexceedexpectations Amongtheimportantinsights,only2%ofmiddlemarketbusinessessaythattheircloudinvestmentfell shortoftheirexpectations.Overthree-fourthsoftheclouduserstermtheircloudexperienceas“better thanexpected.”Infact,90%ofcloudusersarehighlysatisfiedwiththeservicesfromcloudproviderslike GoogleCloud,Amazon,andMicrosoft. Companiesalsocitedthebenefitsofcloudusageasfollows: Improveddatarecovery(50%) Higherproductivity(49%) Improveddatasecurity(49%) Overallefficiencies(42%) Ontheflipside,companiesalsocitedafewdrawbacksofcloudusage–likecostescalation(30%), frequentupgrades(29%),andlackofskilledemployees(25%). Percentofcompaniescitingvariousdrawbacksofcloudusage Increasedcosts 53 Constantlyneedingtoupgrade 37 Theneedtohireemployeeswithspecialistskillsets 25 Workflowdisruptions 25 Integrationissues 25 Databreaches 25 Inefficiencies 25

  11. CloudTransformationStrategiesfor MiddleMarketBusinesses Thereislittledoubtabouttheimportantroleofcloudtechnologiesinthedigitaltransformationofmiddle marketbusinessesacrossindustrysegments.However,theymustalsodevelopeffectivestrategieson howtocreateandoptimizethecloudforfuturebenefits. Hereare3keyconsiderationsformiddlemarketbusinessesthatarelookingtogetmoreoutofthe cloud: 1. Defineyourtransformationalapproach. Startyourcloudjourneybylistingthereasonstomovetothecloudinsteadoftakingatactical approach,deviseatransformationalapproachthatcandelivermorebusinessvalue.According tomostcloudserviceproviders,companiesthatadopta“liftandshift”approachtocloud migrationexperiencemoredownsideintheircloudimplementation. Acomprehensiveortransformationalstrategyworksmoreefficientlyforthebusiness–andis worththeadditionalinvestmentandresources.

  12. Considersecurityindetail. TheNCMMsurveyfounddatasecurityandcloudexpensestobetheleadingconcernsformiddle marketenterprises.49%oftherespondentshadapositiveviewofdatasecurityonthecloud– while only 22% had a negative outlook about security. Similarly, 40% of middle market enterprisesbelievecloudusageimprovedtheircostsavings–while30%hadanegativeoutlook ofthesame. Asisevident,datasecurityisanenableranddeterrenttocloudadoption.Forinstance,Google Cloud counters the deterrence factor through its zero-trust approach. With this approach, Googleprotectscloudworkloadsbyusingmultiplemechanismsandverificationstoestablish trustinthecloudusersandresources. Besidesthat,considerfactorslikehowdatawillbestoredandsecuredinthecloud.Herearesome questionstoaddress: Howdoyoumaintaincontroloverdatalocationsandoperationsonthecloudplatform? Howcanyouaddressonlinethreatsintheformofransomwareandphishing? Whatistheroleandresponsibilityofthecloudserviceproviderindatasecurity? Leveragecloudresourceswithoptimumefficiency. Inthemiddlemarket,mostcompaniesleveragebothinternalandexternalcloudresources.54%of middlemarketcompaniesrelyoninternalITteamsforsupport–while47%partnerwithexternal cloud consultants. Leveraging both internal and external resources can ensure a smoother transition. Ifyouareanexistingclouduser,thenyoucanimprovethecloudexperienceby: OptimizingyourITbudgettotakeadvantageofthecloudcapabilitiesyourbusinessneedsmost Integratingthecloudacrossallbusinessfunctions Takingadvantageofreal-timedataanalyticstomakesmarterbusinessdecisions Modernizingyourbusinessapplicationstoprovideabetterend-userexperience

  13. HowOnixcanhelp For over 30 years, Onix has been a trusted cloud partner for enterprises across industries. Our customizedcloudsolutionscatertouniquecustomerneeds–andcreatemorebusinessvalueforour globalcustomers. Ifyouarelookingfortherightcloudpartnertooptimizeyourcloudstrategy,Onixhastheexpertiseand industryexperiencetosupportyouatallstagesofyourcloudjourney.Getstartedtoday. Getintouch onixnet.com connect@onixnet.com

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