Accenture to invest $3B in new Cloud First business unit

Accenture to invest $3B in new  Cloud First business unit

The multiservice group will be developed over the next 3 years with 70,000 employees.

Consulting giant Accenture is investing $3 billion in forming a new business unit that will focus on helping enterprises become “cloud first” businesses and accelerate their digital transformation to the public cloud.

The company announced what they call the Accenture Cloud First group. This new business unit will employ around 70,000 people working under longtime Accenture executive Karthik Narain. Narain was formerly head of Accenture’s technology services in North America. 

Accenture’s cloud projects accounted for approximately $11 billion in revenue during fiscal 2019. This amounts to about a quarter of the company’s total sales for that year. More than 100,000 Accenture employees are already working in the cloud sector.

Powered by 70,000 professionals, Accenture Cloud First should quickly become the crown jewel of the company’s cloud operations. Cloud First will be a “multiservice” group that will specialize in such areas as cloud migration, application services and infrastructure.

The three-year plan

Accenture plans to invest $3 billion in Cloud First over the next three years. The new group “integrates the company’s wide-ranging cloud expertise, including cloud migration, infrastructure, and application services and ecosystem partnerships; deep industry and cross-industry insights, data and Applied Intelligence capabilities,” according to Accenture.

The group will also specialize in “cloud tools, assets, and automation to drive lower unit cost and innovation; and research and development in edge computing and related cloud technologies.”

The mission: managing massive cloud migration

“With most businesses currently at only about 20% in the cloud, moving to 80% or more rapidly and cost effectively is a massive change that requires a bold new model,” said Paul Daugherty, group chief executive, Accenture Technology. “Accenture Cloud First…ensures that we provide our clients with value, speed and innovation in every part of their cloud journey.”

Accenture believes their 3 year Cloud First investment in money and people will help their customers manage that migration more efficiently and effectively.