Produced in partnership with

A global survey finds cloud

investment becoming a
mainstay for technology
development and operational
efficiency.

2023 Global
Cloud Ecosystem
2  MIT Technology Review Insights in partnership with Infosys Cobalt

Preface
The “2023 Global Cloud Ecosystem” is an MIT Technology Review Insights report sponsored by
Infosys. The report was created through in-depth secondary research and analysis, data from
an MIT Technology Review Insights survey of 400 executives, and interviews with global experts
on the global cloud economy. The report was written by Ross O’Brien, the editor was Michelle
Brosnahan, and Nico Crepaldi was the producer. The research is editorially independent, and
the views expressed are those of MIT Technology Review Insights.

We would like to thank the following individuals for providing their time and insights:

Anant Adya, Executive Vice President and Service Offering Head, Infosys

Mac Esmilla, Global CISO, World Vision

Giusella Finocchiaro, Chairperson of the Electronic Commerce Working Group, United Nations
Commission on International Trade Law

Katherine McDermott, Executive Director of Digital Services, Service NSW

Daniela Proust, Senior Vice President and Head of Global Learning and Growth, Siemens

Raj Savoor, Vice President of Network Analytics and Automation, AT&T Labs

Miao Song, Global CIO, GLP

Sue-Lin Tin, Head of Technology, Pacific and Singapore, CBRE

About the survey

The survey that is the basis of Geographically, the survey drew up about one-quarter (23%)
this report was conducted by from four regions: North America, of respondents. Companies
MIT Technology Review Insights Europe, Asia Pacific, and Australia with revenue of more than
during June 2023. All 400 and New Zealand. Responses $50 billion make up 14% of
respondents are executives in were distributed evenly among respondents.
large organizations, including the four regions.
chief technology officers, chief The industry sectors represented
information officers, chief data About one-third (32%) of the include advanced technology,
officers, vice presidents of data, companies surveyed have revenue IT and telecommunications,
vice presidents of technology, between $10 billion and $50 billion. manufacturing, consumer goods
vice presidents of engineering, Another third (32%) have revenue and retail, health care, financial
and director-level executives. between $1 billion and $10 billion. services, energy, travel, education,
Companies with revenue between and professional services.
$500 million and $1 billion make
 MIT Technology Review Insights in partnership with Infosys Cobalt 3

CONTENTS

0 1 Executive summary.................................................................4

02 The cloud is pervasive and essential...................................5

03 The business value of cloud computing .............................7

The cloud as a talent enabler..............................................................................8

04 Data privacy, sovereignty, and governance.......................9

05 
Cybersecurity is always a priority......................................10

06 Emerging cloud capabilities................................................ 12

5G depends on cloud............................................................................................ 13

07 
Toward a cloud-powered innovation economy................15
In Kuala Lumpur, cloud opportunities abound........................................... 16

08 North America: Building better in the cloud ...................... 17

09 
Europe: The gold standard for responsible,
sustainable cloud development.............................................18

10 Asia: A rising cloud lifts all economies..................................19

11 
Australia and New Zealand: The cloud as an
innovation catalyst....................................................................20
01 0
4  MIT Technology Review Insights in partnership with Infosys Cobalt

Executive
summary

T
he cloud, fundamentally a tool for cost • Cloud-centric organizations expect strong data
and resource efficiency, has long enabled governance (but don’t always get it). Strong data
companies and countries to organize around privacy protection and governance is essential to
digital-first principles. It is an established accelerate cloud adoption. Perceptions of national data
capability that improves the bottom line for sovereignty and privacy frameworks vary, underscoring
enterprises. However, maturity is lagging, and global the lack of global standards. Most respondents decline
standards are sorely needed. to say their countries are leaders in the space, but more
than two-thirds say they keep pace.
Cloud capabilities play a crucial role in accelerating the
global economy’s next stage of digital transformation. • All in for zero-trust. Some 86% of the survey
Results from our 2023 Global Cloud Ecosystem survey respondents use zero-trust architecture. Primarily a
of executives indicate there are two stages of cloud public and hybrid cloud model that removes most
maturity globally: one where firms adopt cloud to achieve instances of trust by default, zero trust has become a
essential opex and capex cost reduction, and a second standard for cloud and AI. Cloud and AI draw from a
where firms link cloud investments to a positive business broad data surface and generate rapid change, which
value. Respondents indicate the two are converging presents new risks. Cloud, a requirement for growing AI
quickly. and automation, also offers the breadth to identify and
classify cloud assets with data cataloging, fast access,
The key findings are as follows: and visibility. This ensures asset risks are understood
and prioritized. However, one-third of respondents do
• Cloud helps the top and bottom line globally. not routinely identify and classify cloud assets.
Global technology market analyst firm Canalys
estimates global cloud infrastructure services spending • Sustainability in the cloud. The cloud’s primary
rose by 29% in 2022 to $65.8 billion, and it expects the function—scaling up computing resources—is a
market to grow by 23% in 2023. More than eight out of key enabler that mitigates compliance issues such
10 survey respondents report more cost efficiency as security; privacy; and environmental, social, and
due to cloud deployments. While establishing a link governance (ESG). More than half (54%) of respondents
between cloud capabilities and top-line profitability say they use cloud tools for ESG reporting and
is challenging, 82% say they are currently tracking compliance, and a large number (51%) use cloud to
cloud ROI, and 66% report positive ROI from enhance diversity, equity, and inclusion (DEI)
cloud investments. compliance.
02
MIT Technology Review Insights in partnership with Infosys Cobalt 5

The cloud is
pervasive and
essential

M
IT Technology Review Insights’ 2023 Figure 1: The cloud is pervasive
Global Cloud Ecosystem survey shows Respondents were asked to rate the extent of
the cloud is pervasive in digitally capable their agreement with the following statements.
organizations, and continues to create
The totals of the “agree” and “disagree” data show
value. Eight out of 10 respondents say
that cloud technology has permeated industry.
cloud investments help trim costs and accelerate
innovation (see Figure 1). Cloud investments have reduced operating costs
Disagree 4% Agree 84%

The cloud has become the dominant platform for IT Cloud-first technology development policy
deployment globally, increasingly in an uncertain 4% 84%

economy. Global technology market analyst firm Canalys

Cybersecurity is a key priority
estimates global cloud infrastructure services spending 6% 82%
rose by 29% in 2022 to $65.8 billion. It expects the
market to grow by 23% in 2023.1 Global technology Source: MIT Technology Review Insights survey, 2023

decision-makers see cloud as essential to ongoing

digital transformation. Most respondents (82%) track Figure 2: The cloud will be essential
Respondents were asked to rate the extent of
the profitability of cloud investments (see Figure 2),
their agreement with the following statements.
and two-thirds report seeing positive return on cloud
investments. Moreover, nearly 80% also believe the The totals of the “agree” and “disagree” data shows
cloud has accelerated innovation in their organizations. that cloud technology has become an integrated
part of business operations and innovation.
Regulators and government bodies continue to work on
We measure the ROI of our cloud investments
policy structures and cybersecurity frameworks required Disagree 3% Agree 82%

to cultivate critical cloud resources. While there is

notable progress, respondents indicate that in many The cloud has returned positive ROI over last two years
10% 66%
economies, more work is required on enabling laws
around data privacy, secure critical infrastructure Cloud investments have boosted innovation
6% 79%
and blockchain, and the ethics and legality of AI use.
Confidence in government is mixed: a fraction of
Source: MIT Technology Review Insights survey, 2023
respondents feels their country lags global efforts
 0
6  MIT Technology Review Insights in partnership with Infosys Cobalt

(see Figure 3); however, only about one-third say their Figure 3: Global cloud leaders and laggards
country is a global leader. Respondents were asked to rate how their country
ranks in global efforts to bolster cybersecurity
Respondents in some regions see pockets of cloud capabilities, build 5G infrastructure, and develop
leadership. The four regions examined in this research generative AI on a scale ranging from leaders to
laggards.
show distinctive results.
The data below highlights both ends of the spectrum,
North America seeks differentiation and efficiency showing an increasingly positive sentiment in global
from cloud. It leads the globe in cloud adoption, and organizational performance.
respondents link cloud investment to business value
Data privacy and laws and regulation
here more than anywhere else. Cloud transformation Laggards 2% Leaders 37%
here exceeds global peers: nearly all (93%) measure
cloud ROI (versus 82% globally) and 76% find positive
Blockchain and digital ledger tech
ROI from cloud assets (versus 66% globally). 6% 35%

Europe is the gold standard for sustainable cloud. Hardening financial service critical infrastructure
2% 44%
Europe’s cloud advantage is its use of digital platforms to
drive social and environmental sustainability. Since 2020, 5G mobile infrastructure
the European Commission has mandated Green Public 3% 32%

Procurement criteria for government acquisition of cloud

Generative artificial intelligence
services,2 and in March 2022, it put forward a set of 5% 39%
recommendations based on a study of how to best
implement cloud resources across the EU in line with the Source: MIT Technology Review Insights survey, 2023
Union’s goal of establishing climate-neutral computing
resources by 2030.3 Unsurprisingly, Europe also leads
in using cloud for carbon emissions reporting, as 42%
of respondents report using cloud for Scope 1 and
Scope 2 emissions, and more than one-third use Some 84% of respondents from Australia and New
cloud for Scope 3. Zealand (ANZ) see cloud as an innovation catalyst—
more than respondents from any other region.
Asia has a wide variety of digital economies at different Governments in ANZ create policy frameworks that
maturity levels. Most respondents (86%) say cloud grow cloud economies and digital transformation, an
reduces technology costs. And although Asia is important driver for cloud adoption. ANZ respondents
committed to bottom-line cloud efficiency, it trails the have the highest cloud-first posture of any region (89%).
rest of the regions in ROI tracking, with 53% reporting From a global view, the cloud is less mature in ANZ, and
positive ROI. Cloud is essential for ensuring Asia’s respondents have the lowest confidence in government
industrial productivity and development goals. data privacy and data sovereignty efforts.

“Technology teams can leverage cloud to drive

automation at every level. Once upon a time, one
administrator would manage 150 to 200 virtual
machines. When you go to cloud, it is one to
10,000 or 12,000.”
Anant Adya, Executive Vice President and Service Offering Head, Infosys
03
MIT Technology Review Insights in partnership with Infosys Cobalt 7

The business value

of cloud computing

C
ost savings are a well-established first “Everybody was moving to cloud to get out of data
driver of cloud investments. More than centers and modernize their legacy infrastructure
eight of 10 survey respondents say cloud to achieve IT efficiency.”
deployments produce more cost efficiency.
Cloud has demonstrated that it improves As the global economy worked its way out of pandemic
the bottom line (see Figure 4). And most respondents shutdowns, Adya explains, “businesses started to
globally are committed to technology development redefine their cloud narratives to focus on business
strategies that begin with cloud. outcomes.” Adya now sees two cloud approaches
evolving simultaneously. “One is to leverage cloud to
But our survey also reveals that most technology save and optimize your cost. The second, which more
decision-makers are trying to leverage their cloud and more businesses are choosing, is to use the cloud
resources to grow and transform operations as to grow and disrupt their market segment or
well. “In 2020, when we launched our cloud brand, industry,” he says.
Cobalt, it was all about taking cost out,” says Anant
Adya, executive vice president and service offering A majority of respondents (82%) say they measure the
head, Infosys. success of these cloud investments by determining ROI

Figure 4: Cloud is good for business culture

Survey responses show that cloud investments reduce costs and bolster innovation.

North Australia/
Overall America Asia New Zealand Europe

Cloud investments
have reduced 84% 82% 86% 84% 84%
operating costs

Cloud investments
have boosted innovation 79% 79% 79% 83% 76%
at our company

We have a cloud-first
technology development 84% 85% 75% 89% 87%
policy

Source: MIT Technology Review Insights survey, 2023

 0
8  MIT Technology Review Insights in partnership with Infosys Cobalt

(see Figure 5). At the same time, only two-thirds (66%)

report positive ROI in the last two years. Challenges There are two distinct stages of cloud maturity globally:
remain for firms in mapping cloud spend to business-line one where firms adopt cloud to achieve essential opex
profitability. Flexera, a cloud cost-management firm, and capex cost reduction, and a second where firms link
estimates in its 2023 survey that for the first time in a investments to a positive business value. Respondents
decade, cost management exceeds security as indicate the two are converging quickly. Cloud-based
technology decision-makers’ top concern. Flexera’s capabilities beyond resource optimization are leveraged
survey also indicates 68% of firms are deploying across business units and shared functions, such as
FinOps—a cloud management discipline that allows talent management, where training and development
organizations to increase the business value of cloud tools play a growing role to identify skill gaps and align
investments—to ensure cloud investments deliver learning programs with strategy.
top-line gains.4

Figure 5: Cloud investment pays off

Survey responses show that companies not only are measuring and tracking cloud investment ROI, but those
investments have returned a positive ROI in the past two years.

North Australia/
Overall America Asia New Zealand Europe

My company tracks its

cloud technology investments 82% 93% 76% 79% 79%
and measures their ROI

Cloud investments have

returned a positive ROI 66% 76% 53% 63% 74%
in the past 24 months

Source: MIT Technology Review Insights survey, 2023

The cloud as a talent enabler

Part of cloud ROI shows in global says “cloud technology is enabling Proust says Siemens leverages
hunger for digital literacy skills— us to provide completely new cloud through its strategic
particularly cloud capabilities. personalized learning experiences framework, NextWork, which
Talent cultivation is crucial for at scale to our people.”6 enables highly personalized
remaining cloud-competitive. upskilling at scale and targeted
Cloud is a critical asset to bring Platform-based learning strategic learning interventions.
these skills to bear, and it is one ecosystems deliver new “It allows us to see areas of
that is sorely needed in every opportunities to help companies major workforce transformation
economy: recent analysis by manage development and and do targeted workforce
Microsoft in Australia and New retention. “We can see what transformation analysis,
Zealand (ANZ) estimates that people are interested in, what then match relevant learning
public cloud adoption will create they actually learn or don’t learn. interventions to an individual’s
more than 700,000 specialized We can see what skills are on the development path,” she says.
jobs in ANZ alone by 2026.5 horizon for specific communities,
Hear more of this conversation with
such as digital talent, and we
Daniela Proust on MIT Technology
Daniela Proust, senior vice can match the right learning Review’s Business Lab podcast,
president and head of global opportunities for each member,” “Building the necessary skills
for digital transformation.”
learning and growth at Siemens, Proust says.
04
MIT Technology Review Insights in partnership with Infosys Cobalt 9

Data privacy, sovereignty,

and governance

A
strong stance on data privacy protection Miao Song, global CIO of real estate conglomerate GLP,
and governance is essential for economies says, “global companies need to adopt a multiregional
promoting cloud adoption. Rapid asset location policy to reflect the current geopolitical
cloudification of IT resources and reality that all countries and regions are increasing their
proliferation of data assets across efforts to develop more enforceable data sovereignty
multiple clouds can make enforcing data governance regulations.” In a recent survey by cloud software firm
difficult. The cloud’s flexible, API-forward environment Nutanix in Australia, data sovereignty emerged as the
enhances the power and capabilities of data top driver of infrastructure decisions, which is beginning
management tools: cloud-based tools make it to cause some organizations to repatriate cloud assets.7
easier to build and deploy powerful ID and access
management (IAM), for instance, which enhances Figure 6: Data management leadership
data security and data privacy capabilities. is maturing
Survey responses show that respondents feel
Most respondents do not see their countries as companies in their countries are supporting data
leaders in data privacy or data sovereignty (see Figure 6), sovereignty laws and regulations.
though more than two-thirds believe their country My country leads in global efforts to support data
keeps pace. Respondents in some large digital sovereignty laws and regulations.
technology economies—the U.S. and China, in
Overall
particular—are more likely to identify themselves as Disagree 2% Agree 39%
leaders. But perceptions of national data sovereignty
and privacy frameworks vary, underscoring the lack North America
1%
of harmonized global standards. 49%

Asia
4% 35%

Australia/New Zealand
1% 33%

Europe
0% 38%

Source: MIT Technology Review Insights survey, 2023

10 MIT Technology Review Insights in partnership with Infosys Cobalt

05 Cybersecurity is
always a priority

P
ublic and hybrid cloud assets raise
cybersecurity concerns and increase threat
surfaces, and AI tools are being used to
improve the predictability of attacks. As cloud
“Global cloud providers
helps AI and automation capabilities mature, will always have security
AI algorithm development is accelerated with the scale
that cloud compute provides. These cloud-produced AI roadmaps that are
tools provide more accurate and predictive security
tools, such as service-provider and enterprise endpoint
much more intense and
incursion and anomaly detection, which improve data advanced than you will
cataloging, access, and visibility. These tools are
emerging rapidly: in June 2023, U.S. networking have, so you tap into
technology giant Cisco launched a security-service
edge (SSE) solution which uses generative AI tools in
advancements in security
its cloud capabilities to streamline security operations capabilities that you
for cloud service providers.8
might not have the ability
Several survey indicators say cloud decision-makers to invest in yourself.”
have robust security postures. Nearly all respondents
(95%) say they have formal processes to assess and Mac Esmilla, Global CISO, World Vision
 MIT Technology Review Insights in partnership with Infosys Cobalt 11

“Cloud migration is not

strategic; it’s organic.
It’s just the most agile way
of meeting customer needs.”
K
 atherine McDermott, Executive Director
of Digital Services, Service NSW

benchmark security in the cloud (see Figure 7). Most Figure 7: Cybersecurity vigilance
(86%) employ zero-trust architecture, which has gained Survey responses show respondents feel their
broad acceptance as a check against the risks around companies have effective, formal cloud asset
AI, because of the large amounts of data it draws on security processes, and support zero-trust data
and the rapid changes it tends to generate.9 policies.

Cloud assets are secured by processes that

Mac Esmilla, Singapore-based global CISO for global are formally assessed and benchmarked.
nonprofit World Vision, oversees security for cloud-
Overall
based IT operations in 125 countries, many of them Disagree 2% Agree 95%
emerging economies. Zero-trust architecture, he
says, provides an important support structure for North America
0% 97%
security policies, particularly over disparate network
environments. “Acceptable use policy becomes an Asia
organizational culture, and one that you cannot 4% 94%

enforce and cannot monitor is no good,” he says.

Australia/New Zealand
1% 93%

Esmilla says cloud-based resources help organizations

secure assets in three ways. “One, shared accountability. Europe
95%
1%
Two, global cloud providers will always have security
roadmaps that are much more intense and advanced
than you will have, so you tap into advancements in We have zero-trust data access policies for
cloud-based resources.
security capabilities that you might not have the ability
Overall
to invest in yourself,” he says.
Disagree 3% Agree 86%

The third is with digital security talent management. North America

1% 92%
“If you build everything by yourself on-premises, how
many subject matter experts will you need to hire,” he
Asia
says, “in every market, at price points your organization 4% 78%

allows you to invest in?” Rather than replicating talent in

Australia/New Zealand
every node of the organization, “sometimes you just 78%
4%
need a good contract manager or vendor-relationship
manager. The cloud vendor helps operationalize security Europe
3% 95%
management,” he says. While Esmilla acknowledges
increased vendor reliance increases third-party risk,
Source: MIT Technology Review Insights survey, 2023
he emphasizes, “it’s still shared risk.”
06
12 MIT Technology Review Insights in partnership with Infosys Cobalt

Emerging cloud capabilities

Figure 8: Perceived generative AI leadership

Global survey responses show most don’t see

C
their home countries as leaders in developing
loud-dense markets drive wider generative AI.
transformation and underpin digital
innovation. Digital companies depend on My nation leads global efforts to develop
cloud-hosted SaaS and AI resources to generative AI.
Overall
innovate and compete. APIs developed in Disagree 3% Agree 39%
the cloud can increase automation of IT resources; this
increases speed and efficiency, and allows organization North America
1% 54%
around digital principles. More process automation
and faster access to customer data drives business
Asia
transformation, which helps reach customers and 7% 33%

constituents—mobile app-based digital natives—

Australia/New Zealand
with the speed and service level they expect. 5% 30%

The cloud empowers data management at scale, and Europe

7% 39%
allows cost-effective management of large data sets.
As the global cloud ecosystem matures, and more and
Source: MIT Technology Review Insights survey, 2023
richer applications and computing resources become
 MIT Technology Review Insights in partnership with Infosys Cobalt 13

available, cloud will be a place for large language models

(LLMs), developing machine learning (ML), and process
automation. The cloud is essential for AI, an emerging
5G depends on cloud
capability where 39% of respondents say their nation is 5G is essential to cloud. Raj Savoor, vice
a leader (see Figure 8). “Cloud and AI go hand in hand,” president of network analytics and
Adya says. “When you look at the engineering, testing, automation applications at AT&T Labs,
and training required to deliver AI products at speed and says that as immersive experiences like
at scale, you will need cloud. The amount of compute, high-definition video, social media apps,
storage, and network required is so intensive, most augmented reality, and virtual reality become
firms just do not have the time and money to build those more common, so will the importance of
infrastructure landscapes within their data-center performance capabilities such as lower
footprint,” he says. latencies, less jitter, and lower variability.

Cloud adoption creates a virtuous cycle in rich and “Experience-intensive smartphone apps are
poor countries. Cloud capabilities will grow as national raising the demand for security and reliability,”
infrastructure initiatives continue to develop 5G, fiber, Savoor says. “A personal device is basically
and edge computing. As end users increasingly use an extension of our persona; protection of the
broadband-rich networks to leverage cloud applications, data in the device becomes equally important
they will speed up network capabilities; this virtuous over the network channel.”
cycle is particularly evident in mobile broadband markets.
Less cloud-dense markets can draw on global resources Savoor further explains, “these high demands
and build core national infrastructure, and access the can really [only] be met with a 5G network
skills digital economies need. architecture. 5G brings cloud-native
application platforms closer to the network
The cloud’s biggest value—scaling up computing edge. This architecture allows for more
resources efficiently and flexibly—is a key enabler of automation and AI tools as users expect to
digital innovation. This can mitigate challenging issues use more applications in the cloud whether
in security, privacy, and ESG compliance (see sidebar). they are in a public venue, their home, or a
More than half of respondents (54%) indicate they use connected car driving in a smart city. Cloud-
cloud-based tools for ESG reporting and compliance native economies and network infrastructure
(see Figure 9). A similar percentage—51%—use cloud need to enable seamless transitions.”
to enhance DEI in talent management, to support
Hear more of this conversation with Raj Savoor on
data-driven insights into DEI initiatives. Comparable to
MIT Technology Review’s Business Lab podcast,
how cloud-based tools help firms analyze carbon impact “Building tomorrow’s telecommunications
network today.”
14 MIT Technology Review Insights in partnership with Infosys Cobalt

“Most new tools that

calculate carbon footprint
or measure sustainability
impact today are built in
the cloud.”
Miao Song, Global CIO, GLP

data to enhance sustainable development, cloud “Most new tools that calculate carbon footprint or
analytics can be deployed by hiring and developing measure sustainability impact today are built in the
teams to enhance equity in employment and cloud,” Song says. “The cloud is the only way to
advancement. roll out assets fast and cost effectively.” Carbon
emissions projects, which involve complex, multi-site
Sustainability in the cloud data integration to deploy networks of IoT-based
Cloud-based analytics helps companies organize sensors, are well-suited to cloud, she says.
and report on ESG metrics, and provides a clearer
picture of carbon emissions. Social and governance Cloud can also be a platform to operate sustainably,
metrics are less mature than environmental metrics but Song cautions that the cloud is only part of the
and remain less well understood. ESG reporting equation. CIOs should look broadly at aligning digital
requirements are becoming more stringent as transformation with sustainability goals, contributing
customers and stakeholders demand more data. to firmwide efforts, she says.
The cloud can be part of the solution as a platform
to collect, analyze, and share.

Figure 9: Prioritizing cloud-based resources to enable ESG activities

In the last two years, my company has prioritized cloud-based resources for the following:

North Australia/
Overall America Asia New Zealand Europe

ESG compliance
reporting 54% 52% 62% 52% 52%

Energy monitoring and

management solutions
47% 54% 47% 45% 42%

Scope 1 and 2
carbon emissions 35% 39% 33% 27% 42%
accounting tools

Scope 3
carbon emissions 30% 31% 28% 26% 35%
accounting tools

Source: MIT Technology Review Insights survey, 2023

07
MIT Technology Review Insights in partnership with Infosys Cobalt 15

Toward a cloud-powered
innovation economy

T
echnology decision-makers expect a lot machines. When you go to cloud, it is one to 10,000 or
from the cloud. Cloud computing and 12,000,” he says.
cloud-hosted applications are essential
for scaling digital resources while reducing As cloud technology becomes ubiquitous, it also spreads
costs, delivering differentiated experiences, the knowledge and availability of security practices that
and accelerating leading-edge innovation. Cloud address its increased threat surface, with more accurate
capabilities enable fast, cost-effective computing and predictable security tools. Cloud eases deployment
at scale. of ID and access management (IAM) to enhance data
security and data privacy capabilities. As less-developed
Overwhelmingly and comprehensively, the cloud fulfills economies access the cloud, they can also access
all these expectations, respondents say. Moreover, global talent and experience. As most respondents
from emerging to advanced economies, most believe indicate, the cloud enables them to be more carbon-
the cloud is a fundamental building block for digital efficient and meet ESG standards.
economic development. Respondents believe cloud
powers development of analytics, puts process Most respondents see a lack of leadership around
automation into operation more quickly, and enhances governance, but most also feel assured their nations
capabilities of data management and data security tools. are at least keeping pace. Perceptions of national
“Cloud deployments are done in a very standardized data sovereignty and privacy frameworks, which vary,
and disciplined fashion, and this means the number of call out for effective global standards.
support resources required have been significantly
reduced,” says Adya. “Technology teams can leverage Bottom-line efficiency and top-line innovation mean
cloud to drive automation at every level. Once upon a cloud computing is fast facilitating further innovation:
time, one administrator would manage 150 to 200 virtual AI, blockchain, and other technologies will define the
 0
16 MIT Technology Review Insights in partnership with Infosys Cobalt

next stage of global economic productivity. Cloud

maturity is approaching, as its ability to reduce costs and
show positive business value increasingly converge.
In Kuala Lumpur,
cloud opportunities
Our survey data shows there is no single path toward
convergence. There are correlations between cloud
abound
economy policy and infrastructure maturity, and the Microsoft’s “Bersama Malaysia’’ initiative, launched in
ability of participants to realize returns from cloud 2021, is a commitment to invest $1 billion over five
investments. Few respondents consider their country years to establish the country’s first data-center
a leader in maintaining strong data regulatory region in Greater Kuala Lumpur and to provide cloud
environments and in cyber-resilient critical digital services. Microsoft is partnering with Malaysian
infrastructure (with the exception of Canada and China). government agencies and local companies; it has a
In more mature cloud economies, respondents from global commitment to shift to 100% renewable energy
companies with competency in at least one cloud by 2025, which will include having power purchase
ecosystem seem to be able to see positive ROI. Strong agreements for green energy contracted for all the
policy and platform infrastructure—regulatory clarity and carbon-emitting electricity consumed by its data
pro-data governments—are also linked to cloud ROI for centers, buildings, and campuses.
respondents (France, Germany, and the U.S. rank highly).
In some cases, well-managed cyber-resilient and secure At the Bersama Malaysia Microsoft Cloud Summit
network environments are also catalysts for positive 2022, Malaysian global energy company National
cloud ROI (particularly in India). Petroleum Unlimited, known as Petronas, announced
it uses Azure-supported AI tools for productivity,
Observing the links between perceived domestic asset maintenance, and safety for its fossil fuel
technology leadership and an organization’s ability to operations. It aims to accelerate AI adoption to
innovate with the cloud, we see a broadly similar set of increase effectiveness throughout its energy value
findings emerge. More respondents report high levels chain, and is opening an AI center of excellence in
of innovation from countries that excel in cloud-critical partnership with Microsoft and others.
technologies such as AI and edge computing. Japan,
the U.S., and Canada rank highly. Outliers include many The Kuala Lumpur government has sought to increase
European respondents who feel their countries do not green opportunities, including its smart City Brain
lead in development of AI or next-generation computing; governance system. It uses Alibaba Cloud’s
however, many respondents still extract value from computing systems to optimize traffic flow and
cloud investments. Europeans, conscious about a lack emergency services, and to detect traffic problems
of domestic cloud technology development, feel their and accidents. It is the first city outside China to use
regulatory and business environment cultivates a the system. The cloud system will enable AI to
cloud-friendly ecosystem. integrate video and image recognition, data mining,
and machine learning with big data. Alibaba opened
While all cloud economies need to perform effectively— the first global public cloud platform in the country
with clear regulatory environments, digitally minded in 2017.
business environments, and robust broadband
networks—the survey finds markets with excellence in Google Cloud Platform (GCP) announced plans to
at least one critical cloud competency can create overall launch new operations in Malaysia and Thailand in
momentum. Those that develop one competency with August 2022. The new operations, plus another
speed and agility usually see positive feedback that in New Zealand, join 35 global cloud facilities in
encourages development of others. The network effects 20 countries for the company, with nine more in
of cloud economics lets firms seize immediate gains development. GCP offers infrastructure as a service
such as process efficiency and cost savings, which can (IaaS), platform as a service (PaaS), and software as
quickly scale into broader-reaching value creation. a service (SaaS) to organizations worldwide.
08
MIT Technology Review Insights in partnership with Infosys Cobalt 17

North America:
Building better in the cloud

NORTH AMERICA

100%
U.S. respondents
self-identify as cloud
security leaders: fully
100% say they use cloud
security frameworks, and nearly all (92%) employ
zero-trust architecture.
Source: MIT Technology Review Insights survey, 2023

N
orth America leads the global survey in security efforts, and in technologies like blockchain.
cloud adoption and linking cloud investment Blockchain has synergies with cloud, and is increasingly
to business value. The U.S. is more used in data management for identity management
confident than global peers in its and authentication. Blockchain peer networks, such
leadership across many attributes for as the Interplanetary File System, are developing
robust infrastructure and policy that support cloud cloud storage.12
development. Governments here identify a competitive
cloud economy as an important component of economic U.S. respondents self-identify as cloud security leaders:
rejuvenation. The U.S. government (the world’s single fully 100% say they use cloud security frameworks,
largest buyer of technology services) is diversifying and nearly all (92%) employ zero-trust architecture.
cloud procurement practices to increase competition.10 U.S. cybersecurity and data sovereignty efforts, however,
can lead to clashes—particularly with China. A years-
North American respondents clearly build better long technology cold war with China spilled into the
businesses in the cloud than their global peers. Almost cloud economy in April 2023, as U.S. lawmakers
all (93%) measure cloud ROI (versus 82% globally), and sought to sanction Chinese cloud providers on
76% see positive ROI from cloud (versus 66% globally). national security grounds.13
Respondents in Canada and Mexico are more likely to
consider development paths cloud-first, underscoring Cloud adoption is also accelerated by policy action in
the importance of technology deployment. Economic North America. The U.S. Inflation Reduction Act (the
headwinds are impacting investment agendas; McKinsey largest climate stimulus package to date) channels
research from 2023 notes that although cloud migration investment to energy transition, industrial automation,
continues to grow, the rate of migrations has slowed and smart infrastructure—all dependent on cloud. Most
in the face of rising costs and data privacy and respondents (72%) in North America deploy cloud-based
latency issues.11 process automation, and more than half have ESG
reporting and energy management tools in the cloud.
U.S. and Canada respondents show the highest U.S. respondents, more than any others, believe they
engagement in data privacy, data sovereignty, and lead global efforts in next-generation technologies,
particularly AI (54%).
09 1
18 MIT Technology Review Insights in partnership with Infosys Cobalt

Europe: The gold standard

for responsible, sustainable
cloud development

EUROPE

87%
European technology decision-

E
makers have a cloud-first
urope’s cloud advantage is its ability to use development stance (87%), better
than peers globally, led by the U.K.
digital platforms to drive regional social and and Nordic countries.
environmental sustainability. European Source: MIT Technology Review Insights survey, 2023

respondents report slightly lower business

value visibility in cloud operations (79%) than
the global average. Reported operational cost reductions nonpersonal data as well, and for “finding a way, at an
(84%) track the global average, although surprisingly, international level, to build bridges between different
only 56% of German respondents saw bottom-line data protection systems.”
improvements (perhaps an indication of the leanness
of operations in that efficiency-focused economy). The EU has the highest levels of cloud security practices,
European technology decision-makers have a cloud-first evidenced by its executive commitment to security
development stance (87%), better than peers globally, (85%), and implementation of zero-trust architecture
led by the U.K. and Nordic countries. (95%). Only a few countries (Germany and Spain, in
particular) do not indicate widespread use of zero trust.
The EU is the global gold standard for data privacy
management and policy creation. Data management This region has an advanced posture on supply chain
is in sharp focus in the EU, and many respondents accountability for carbon impact. The EU leads in
here (43%) say their nation is a data privacy leader. legislation and investment in smart cities, low-carbon
Businesses headquartered here capitalize on the EU’s transportation, mobility, and renewable energy. Cloud-
GDPR environmental regulation and the robust based analytics and process control resources are
regulatory environment. This creates competitive critical for autonomous and automated energy and
advantage for cloud-centric sectors like health care, transport systems, and seven of 10 respondents rely
manufacturing, aerospace, and financial services. on cloud to enable process automation. Cloud-based
energy management solutions are employed by many
Giusella Finocchiaro, chairperson of the Electronic (42%) respondents—a figure likely to rise as the EU’s Fit
Commerce working group at the UN Commission on for 55 initiative propels organizations to reduce carbon
International Trade Law (UNCITRAL), says GDPR’s chief footprints 55% by 2030. Europe is a clear leader in using
merit is that it “drives attention to the value of personal cloud for carbon emissions reporting, with 42% using
data, and this could potentially create a global standard.” cloud tools for Scope 1 and Scope 2 emissions, and
It is, she says, a catalyst for data regulation innovation on more than a third using cloud to track Scope 3.
10
MIT Technology Review Insights in partnership with Infosys Cobalt 19

Asia: A rising cloud

lifts all economies

ASIA

85 %
In Asia, 85% of interviewees

T
say cloud reduces
he cloud is increasingly important in Asia, technology costs, the
across its variety of digital economies and highest among all regions.
Source: MIT Technology Review Insights survey, 2023
maturity levels. Emerging and advanced
countries can access cost-effective cloud-
based technology at speed and scale. In resources. “We are still trying to work out whether this is
survey responses, 86% say cloud reduces technology an application issue or a data privacy and access issue—
costs, the highest among all regions (though Hong Kong, but probably the latter,” she said.
at 67%, is an interesting outlier). Respondents report the
lowest ROI tracking globally, and little more than half Asia reports low levels of zero-trust architecture, and
(53%) see positive ROI. adoption varies: it is highest in India, a market dependent
on international technology and software services, and
Cloud-aspirational Asian governments hope to catalyze lowest in Korea and Hong Kong. Regionally, “there are
economy-wide adoption. Singapore is working toward a not more security considerations, they are just different,”
cloud-first economy (as are over 70% of Singaporean says Tin. “We now have to stand up a lot of our own
survey respondents): in May 2023, the government applications in many third-party environments, and that
announced plans to invest 30% of its IT budget (U.S. creates a lot more gates for us to consider,” she says.
$2.45 billion) on cloud-based applications from
commercial vendors.14 India Stack, another ambitious As Asia’s production centers integrate into global supply
multi-stakeholder effort, builds on the Indian government’s chains, they become more sensitive to ESG compliance.
investment in digital identity and payment infrastructure.15 Asian respondents report the highest levels (62%) of ESG
Indian survey respondents report high confidence in their reporting. China, with policy links between technology
cloud deployment as a result: 71% report positive ROI adoption and energy conservation and sustainability, is
from cloud investments, 93% say they’ve saved money the single-highest ranked for using cloud for ESG. Japan
with the cloud, and 86% report an innovation boost from and India also rank highly.
their cloud capabilities. These results are higher than
the global average, as well as their Asian peers. Asia is home to the world’s largest numbers of digital
consumers, and to its most important manufacturing hubs.
Respondents from large Asian cloud markets say they This is traditionally led by China, but Southeast Asia is
lead in data privacy and sovereignty efforts; Chinese catching up; significantly, Malaysia and Singapore report
respondents (57%) rank their country as a leader. Sue-Lin the highest levels of cloud-enabled process automation
Tin, head of technology for Pacific and Singapore at adoption. The cloud is essential for serving these
CBRE, points to difficult situations with data sovereignty in customers and ensuring industrial productivity keeps
its public sector, which sometimes complicate access to pace with development goals.
11
20 MIT Technology Review Insights in partnership with Infosys Cobalt

Australia and New Zealand:

The cloud as an
innovation catalyst

AUSTRALIA AND NEW ZEALAND

84 %
In ANZ, 84% of respondents—more
than in any other region—report

A
cloud investments have directly
ustralia and New Zealand (ANZ) are at pivotal contributed to innovation at their
organization.
junctures. This region creates responsive
Source: MIT Technology Review Insights survey, 2023
policy frameworks to help cloud economies
grow and accelerate digital transformation.
Enterprises are integrating cloud into customer needs,” she says. This belief is underscored by
day-to-day operations, and see cloud as a catalyst for the fact that 84% of ANZ respondents—more so than
digital transformation. any other region—report that cloud investments have
directly contributed to innovation at their organization.
The cloud is less mature here than globally—only 63%
see positive ROI in cloud investment. ANZ respondents ANZ’s cloud-centricity does come with challenges,
have the highest cloud-first posture of any region (89%). cybersecurity in particular. The region has suffered
Australia’s department of finance has been cloud-first from many high-profile data breaches in recent years,
for more than a decade, to make information and impacting banks, telcos, and health-care providers.
communications technology purchases, which are Respondents there have the lowest confidence in
reevaluated for security posture every three or four government data privacy and data sovereignty efforts,
years. New Zealand has had a cloud-first stance since and lower-than-average opinions of efforts to harden
2012; in June 2023, it shifted development policy to critical network and financial infrastructure. In response,
increase use of domestic cloud infrastructure and Australia aims to be a cybersecurity leader. It has
services, and to focus on data sovereignty for redoubled efforts to use digital tools and regulations
indigenous communities.16 to safeguard personal data and digital transactions, and
is overhauling cybersecurity law. Respondents report
Government cloud deployment and investment is an low executive prioritization for cloud security, however,
important driver for cloud adoption in ANZ. “The and low implementation of zero trust.
Australian government sees the cloud’s potential in
enabling contemporary ways of working,” says Katherine Though ANZ respondents see cloud as a catalyst for IT
McDermott, executive director for digital services at innovation, they report the lowest confidence (30%) in
Australian government agency Service NSW. She says cloud support for AI development. This tracks with global
Australia’s largest state is on a decade-long journey averages in use of cloud for ESG reporting and energy
to create a one-stop shop for digital citizen services, use management (52% and 45%), but only about one
developed in the cloud. “Cloud migration is not strategic; quarter currently tracks Scope 1, Scope 2, or Scope 3
it’s organic. It’s just the most agile way of meeting emissions using cloud.
 MIT Technology Review Insights in partnership with Infosys Cobalt 21

About MIT Technology Review Insights

MIT Technology Review Insights is the custom publishing division of MIT Technology Review, the world’s
longest-running technology magazine, backed by the world’s foremost technology institution—producing
live events and research on the leading technology and business challenges of the day. Insights conducts
qualitative and quantitative research and analysis in the U.S. and abroad and publishes a wide variety of content,
including articles, reports, infographics, videos, and podcasts. And through its growing MIT Technology Review
Global Insights Panel, Insights has unparalleled access to senior-level executives, innovators, and thought
leaders worldwide for surveys and in-depth interviews.

About the partner

Infosys Cobalt is a set of services, solutions, and platforms that acts as a force multiplier for cloud-powered
enterprise transformation. It offers 35,000 cloud assets and over 300 industry cloud solution blueprints.
Infosys Cobalt helps businesses redesign the enterprise, from the core, and also build new cloud-first
capabilities to create seamless experiences in public, private and hybrid cloud, across PaaS, SaaS, and
IaaS landscapes. With Infosys Cobalt’s community leverage, enterprises can rapidly launch solutions and
create business models to meet changing market needs while complying with the most stringent global,
regional and industry regulatory and security standards. For insights from industry leaders across the globe
on how cloud and cloud-enabled technologies are helping organizations move from cloud chaos to clarity,
see The cloud hub: From cloud chaos to clarity. For more details on Infosys Cobalt, visit us at infy.com/
infosyscobalt.

Footnotes
1. ““Worldwide cloud service spend to grow by 23% in 2023,” (press release), Canalys, February 8, 2023, https://www.canalys.com/newsroom/global-cloud-services-Q4-2022.
2. Nicholas Dodd, et al., “Development of the EU Green Public Procurement (GPP) Criteria for Data Centres, Server Rooms and Cloud Services,” European Commission’s Joint Research Centre, 2020,
https://publications.jrc.ec.europa.eu/repository/handle/JRC118558.
3. Valentijn Bilsen, et al., “Study on Greening Cloud Computing and Electronic Communications Services and Networks: Towards Climate Neutrality by 2050,” Directorate-General for Communications
Networks, Content and Technology, March 22, 2022, https://digital-strategy.ec.europa.eu/en/library/study-greening-cloud-computing-and-electronic-communications-services-and-networks-
towards-climate.
4. “2023 State of the Cloud Report,” Flexera, 2023, https://info.flexera.com/CM-REPORT-State-of-the-Cloud.
5. Linus Lai and Louise Francis, “Public Cloud Services Opportunities and Dividends to the Australian and New Zealand Economies,” IDC, November 2022,
https://news.microsoft.com/wp-content/uploads/prod/sites/66/2023/04/IDC-WP_MSFT_FINAL_17.04.pdf.
6. “ Building the necessary skills for digital transformation,” MIT Technology Review Business Lab podcast, June 15, 2022,
technologyreview.com/2022/06/15/1052869/building-the-necessary-skills-for-digital-transformation/.
7. Aaron Tan, “Data sovereignty and security driving hybrid IT adoption in Australia,” ComputerWeekly.com, June 21, 2023,
https://www.computerweekly.com/news/366542399/Data-sovereignty-security-driving-hybrid-IT-adoption-in-Australia.
8. “Cisco Shows Breakthrough Innovation Towards AI-First Security Cloud,” (press release), Cisco Systems, June 6, 2023,
https://newsroom.cisco.com/c/r/newsroom/en/us/a/y2023/m06/cisco-shows-breakthrough-innovation-towards-ai-first-security-cloud.html.
9. Phil Laplante and Jeffrey Voas, “Zero-Trust Artificial Intelligence?” in Computer, vol. 55, no. 02, pp. 10-12, February 2022, https://www.computer.org/csdl/magazine/co/2022/02/09714079/1AZLiSNNvIk.
10. Lindsay Clark, “Oracle, Microsoft barely compete for a quarter of their US Federal contracts,” The Register, February 1, 2023, https://www.theregister.com/2023/02/01/oracle_microsoft_us_government/.
11. “M cKinsey Technology Trends Outlook 2023,” McKinsey, July 20, 2023, https://www.mckinsey.com/capabilities/mckinsey-digital/our-insights/the-top-trends-in-tech#new-and-notable.
12. Lachlan Keller, “Blockchain developers have taken a decentralized interest in cloud storage – will it shake up the industry?,” Forkast, February 9, 2023,
https://forkast.news/blockchain-developers-decentralized-interest-storage/.
13. Dashveenjit Kaur, “US Senators are urging Biden to sanction Chinese cloud firms, including Huawei and Alibaba,” Tech Wire Asia, April 27, 2023,
https://techwireasia.com/2023/04/us-senators-are-urging-biden-to-sanction-chinese-cloud-firms-including-huawei-and-alibaba/.
14. Eileen Yu, “Singapore focuses ICT spend on cloud applications,” ZDNET, May 25, 2023, https://www.zdnet.com/article/singapore-focuses-ict-spend-on-cloud-applications/.
15. B enjamin Parkin, John Reed, and Jyotsna Singh, “The India Stack: opening the digital marketplace to the masses,” Financial Times, April 20, 2023,
https://www.ft.com/content/cf75a136-c6c7-49d0-8c1c-89e046b8a170.
16. Marc Daalder, “Govt quietly resets rules for public sector cloud use,” Newsroom, June 14, 2023, https://www.newsroom.co.nz/govt-quietly-resets-rules-for-public-sector-cloud-use.

Illustrations
Cover and spot art assembled by Chandra Tallman Design with images from Adobe Stock and The Noun Project.

While every effort has been taken to verify the accuracy of this information, MIT Technology Review Insights cannot accept any responsibility or liability for reliance by any person
on this report or any of the information, opinions, or conclusions set out in this report.

© Copyright MIT Technology Review Insights, 2023. All rights reserved.

 Learn how Infosys Cobalt can accelerate your business
with cloud services, solutions and platforms.

www.technologyreview.com/thecloudhub
MIT Technology Review Insights

www.technologyreview.com
[email protected]