Cloud Modernization Boosts Market Valuation, Deloitte Finds
CIODIVE, Friday, May 12,2023
Strategic cloud investments amplify the impact of other technologies on how investors value companies, the consulting firm found.
Strategic investments in cloud migration, cloud-native projects and related cyber and machine learning services deliver outsized impact on market valuation and shareholder returns, according to a Deloitte report published Tuesday. The consulting firm analyzed the financial statements and technology spending of more than 4,500 companies over a 10-year period.
Spending on cloud acts as a force multiplier, the report found, adding long-term value to investments in automation, cyber, IoT and other individual technologies. Cloud investments yielded roughly three-times the market value compared to cyber investments alone, the analysis found.