Professional services company Accenture (ACN) - Get Report announced the formation of Accenture Cloud First, a $3 billion investment over the next three years designed to help its clients become "cloud first" businesses.
Accenture Cloud will help businesses accelerate their digital transformation. The new arm of the company will be lead by Karthik Narain effective October 1.
The coronavirus has created "a new inflection point" that will force every company to "dramatically accelerate" their moves to the cloud, Accenture CEO Julie Sweet said.
"Digital transformation requires cloud at scale, and post-COVID leadership requires that every business become a ‘cloud first’ business," Sweet said.
Accenture Cloud is a multi-service group of 70,000 cloud professionals with the singular focus of moving companies onto the cloud with speed.
The company says that is is spending $3 billion to continue advancing industry road maps and data maps as well as cloud AI data and automation in order to drive lower unit cost and innovation.
Narain most recently served as the Accenture's North America Technology lead and is a 20-year veteran of the technology industry.
The company estimates that only about 20% of business are in the cloud while there is a shift in how companies do business amid the coronavirus pandemic.
Accenture cites a Gartner study that forecasts 6.3% growth in the cloud market in 2020 to $257.9 billion, up from $242.7 billion in 2019.
By 2022, that number is expected to climb to $364.1 billion.
Cloud is the most disruptive and value-creating technology of our time -- it is the foundation for the digital transformation," said Paul Daugherty, group chief executive, Accenture Technology.
Accenture shares fell 1.85% to $235 Thursday afternoon.