The Portland Group
CSCS Top Right Frontpage

Since 1986 - Covering the Fastest Computers
in the World and the People Who Run Them

Language Flags

Visit additional Tabor Communication Publications

Enterprise Tech
HPCwire Japan

High-Tech Companies Face Challenges Keeping Pace with New Cloud-Based Business Models, Accenture Study Finds

NEW YORK, April 23 — High-tech companies are struggling to transform their traditional business models of shipping hardware products or packaged software to more complex business models of providing new services based on cloud computing, new Accenture research has found.

The research, summarized in a new report released today, Where the Cloud Meets Reality: Scaling to Succeed in New Business Models, included interviews with more than 40 senior executives from 30 companies that operate, or are building, Software-as-a-Service, Platform-as-a-Service or Infrastructure-as-a-Service cloud-based businesses. The goal was to develop deeper insights to help companies create approaches to successfully scale and operationalize these new cloud-based business models.

The research further revealed that many senior leaders lack a clear understanding of how the complexity of these new business models impacts operations in nearly every function of their companies. This disconnect will become increasingly important because most leading technology firms expect to generate revenue growth through five or more business models by 2015, several of which are likely to be based on cloud, the research concluded. These companies typically have two-to-three business models today.

"Growing cloud-based business models is highly strategic and an immense undertaking for high-tech companies," said Mitch Cline, global managing director with Accenture's Electronics & High-Tech group. "Companies face enormous operational challenges in determining how to support these new models and deliver the world-class experience demanded by enterprise customers, in particular. Companies aren't prepared today strategically or operationally to cope with the magnitude of disruption they're facing."

Accenture recommends that companies take these steps to help overcome the challenges:

  • Determine how many business models they have today and which new ones are needed to capitalize on market opportunities;
  • Identify and build distinctive capabilities needed to deliver business in the cloud;
  • Develop a segmented operating model to deliver distinctive service capabilities with the right customer experience and economics; and
  • Implement a governance model for making key resource allocation and other critical decisions.

"Executing these recommendations requires a dramatic departure from how most high-tech companies run today," Cline added. "Delivering to customers using a service business model is so fundamentally different than using a product business model that nearly all business operations need to be re-thought. As a result, high-tech companies need a coherent blueprint to make a successful shift to a services-centric business and to compete more nimbly with new cloud competitors. Chief operating officers in particular need to take more responsibility for forward-looking strategic planning and to develop sharply different capabilities and skills."


Accenture conducted in-person and phone interviews with 30 companies from May 2011 through November 2011. The interviews focused on business unit executives as well as operations and IT executives, primarily in the high-tech industry. The research also included interviews with executives in communications and other technology-enabled companies. The interviews explored the challenges facing companies as they confront a future of providing Anything-As-a-Service (XaaS).

For a copy of Accenture's new report, Where the Cloud Meets Reality: Scaling to Succeed in New Business Models, go to

About Accenture

Accenture  (NYSE: ACN) is a global management consulting, technology services and outsourcing company, with more than 246,000 people serving clients in more than 120 countries. Combining unparalleled experience, comprehensive capabilities across all industries and business functions, and extensive research on the world's most successful companies, Accenture collaborates with clients to help them become high-performance businesses and governments. The company generated net revenues of US$25.5 billion for the fiscal year ended Aug. 31, 2011. Its home page is


Source: Accenture

Most Read Features

Most Read Around the Web

Most Read This Just In

Most Read Blogs

Sponsored Whitepapers

Breaking I/O Bottlenecks

10/30/2013 | Cray, DDN, Mellanox, NetApp, ScaleMP, Supermicro, Xyratex | Creating data is easy… the challenge is getting it to the right place to make use of it. This paper discusses fresh solutions that can directly increase I/O efficiency, and the applications of these solutions to current, and new technology infrastructures.

A New Ultra-Dense Hyper-Scale x86 Server Design

10/01/2013 | IBM | A new trend is developing in the HPC space that is also affecting enterprise computing productivity with the arrival of “ultra-dense” hyper-scale servers.

Sponsored Multimedia

Xyratex, presents ClusterStor at the Vendor Showdown at ISC13

Ken Claffey, SVP and General Manager at Xyratex, presents ClusterStor at the Vendor Showdown at ISC13 in Leipzig, Germany.

HPCwire Live! Atlanta's Big Data Kick Off Week Meets HPC

Join HPCwire Editor Nicole Hemsoth and Dr. David Bader from Georgia Tech as they take center stage on opening night at Atlanta's first Big Data Kick Off Week, filmed in front of a live audience. Nicole and David look at the evolution of HPC, today's big data challenges, discuss real world solutions, and reveal their predictions. Exactly what does the future holds for HPC?


Stay informed! Subscribe to HPCwire email Newsletters.

HPCwire Weekly Update
HPC in the Cloud Update
Digital Manufacturing Report
HPCwire Conferences & Events
Job Bank
HPCwire Product Showcases


HPC Job Bank

Featured Events

HPCwire Events