Imagine you are asked to produce as much lemon juice as possible, and to do this you are given a big bright juicy lemon.

That’s how I see institutions approaching the adoption of cloud. They can’t wait to squeeze the value out of it.

It’s not working as well as most companies would like. In our new Cloud Outcomes research, only 37% of companies indicated they fully achieved their expected outcomes from cloud, and even fewer – 29% – said they are completely confident their organisations’ migration initiatives will deliver the expected value at the expected time.

If I can take the lemon analogy a bit further. I think what accounts for the expectation / reality gap is that institutions are trying to squeeze 100% of the juice out of only half the lemon.

In the financial services and banking industry, companies are squeezing the cost/efficiency side of the lemon, and while they gain some good results, there’s less and less juice to be had from that half of the lemon.

The opportunity to gain all the promised benefits of cloud computing lie in the other half of the lemon: with future business models, growth and sustainability.

Banks’ future business models will emerge from three main strategies: 1. banking as a platform (BaaP); 2. banking as a service (BaaS); and 3. banking as a marketplace.

Changing the business model is difficult. That’s because the obstacles are not technical. The obstacles are strategic and organizational. Of course, the way cloud allows companies to manage data in radically new ways can enable a wise pivot to a new business model, but cloud computing can’t do it alone. It needs strategic direction.

That’s the other half of the lemon.

The CIO can, and should, use cloud computing to drive cost savings. That half of the lemon is their responsibility.

The other half of the lemon – what the 29% or 37% of our research respondents are squeezing along with the cost-saving half, is how cloud computing can unlock new business models to make their businesses sustainable.