Organizations will significantly increase their earnings if they had less technology debt and if they matured in cloud adoption.

According to a recent report from Avanade, that claims businesses could earn an additional amount of around  $1 billion per year by achieving maturity in the cloud, and it could also reduce operational costs by more than 11 percent.

However, for this to fall in place, businesses would need to adapt to a holistic approach towards building cloud technology and applications with the implementation of modern engineering techniques.  The technology and applications should be ensured that they are ready by design.

To add more value to this, Avanade surveyed more than 1,600 C-level executives to find out that just 12% of them think that their cloud capabilities are optimized, whereas 45% consider themselves at the initial or opportunistic stage for their cloud adoption journey. Almost 27% expect their cloud strategy to be fully optimized by the year 2023 but accept that the journey will not be hurdle free.

Businesses are using cloud solutions combined with on-premises solutions; the C-level executives expect the debt to rise from 17 to 19%. According to 76% executives, the costs of handling legacy software will slow down the time to market, curb the innovation by 74% and make it even difficult for the skilled workers according to 74%.

Adam Wengert, Global Applications and Infrastructure lead at Avanade said in a statement that cloud maturity is creating a two-tier business landscape with digital laggards finding themselves stagnate while the native digital competitors are streaming ahead.  The point of differentiation between the businesses will rise from the native’s ability to pivot towards better opportunities and away from threats using the cloud-based architecture.

Cloud-based businesses will only be successful when they are not afraid to experiment, and they can drive enterprise innovation. The enterprises will be able to get new ideas to market at a faster rate and more often than their competitors.