Find out more
Report: Driving business outcomes through cost optimised innovation
Find out more
Report: Driving business outcomes through cost optimised innovation
What sets high-performing mid-market companies apart in 2025? New research from SoftwareOne identifies a select group of these businesses (for the purposes of the research, organisations with revenues between $500 million and $5 billion) that consistently outperform their peers.
We’ve called these outliers 'Optimised Innovators'—and we’ve discovered that cloud (and the way they pay for it) is a big part of their success story.
In fact, by excelling at cloud adoption and automation, these mid-market leaders achieve a degree of competitive parity with enterprise organisations that benefit from much bigger budgets and larger teams. This enables them to innovate on almost equal terms, further driving the flywheel effect to create a virtuous cycle of continuous cost savings and investment.
While as many as 67% of large enterprises report high levels of innovation, these mid-market success stories prove that size isn't everything. More than two-thirds of our mid-market sample have built cloud-based infrastructures of their own, while over half have moved their applications to the cloud and migrated core processes. They’re optimising costs—and investing for innovation on their own terms.
The flywheel effect becomes clearly visible in the numbers. 46% of mid-market companies featured in our research found their software costs too high, with a similar percentage struggling with cloud expenses. Optimised Innovators turn this challenge into opportunity. Through methodical cloud optimisation, they consistently free up resources that fund new innovation projects. These investments then generate further efficiencies, creating sustainable growth.
Their ambitions don’t stop there.
Over the next two years, our research show these companies will further strengthen their cloud advantage through FinOps adoption and migrating further workloads to cloud: they're on track to run 70% of software applications and 56% of custom applications in the cloud.
How does this process work in practice?
Two companies show the way—and SoftwareOne is all-in on supporting them both.
The cloud foundations built by Optimised Innovators deliver tangible business benefits, underpinned by the flywheel of self-funding innovation. These advantages were powerfully apparent when SoftwareOne helped Bemol, Brazil's largest retail group in the Western Amazon, undertake a radical transformation encompassing cloud investment, e-commerce, and AI intiatives.
In the beginning, the main benefit from the cloud was capital cost savings, but now the benefits are the ability to move in an agile way to scale innovation. It's ultimately not about cost savings, it's really about generating growth.
CIO Bemol
The savings that Bemol generated through more efficient cloud-based operations released budget for innovation initiatives. Operating in a region where poor infrastructure makes e-commerce difficult, Bemol faced a significant business challenge. Many of their customers live in areas with limited internet access, making online shopping nearly impossible. As part of its transformation, Bemol therefore responded by offering free internet at their stores and the surrounding neighbourhoods.
The project was very successful from both a commercial and financial standpoint, generating a positive return on the company’s investments. Customer acquisition costs were cut in half, data collection improved, and offering credit to customers became a practical possibility.
This blend of operational efficiency and competitive advantage was also evident when Lampenwelt, Europe’s leading online retailer for lighting products, partnered with SoftwareOne to transform its IT systems using Azure cloud services. The migration achieved a 30% increase in operational efficiency by automating processes through Infrastructure as Code (IaC) and enhancing disaster recovery capabilities. This transformation not only reduced IT costs but aslo enabled Lampenwelt to adapt to evolving business requirements and efficiently scale its services across national borders.
In an equally impressive success story , innovative Italian insurer Bene Assicurazioni, transitioned to a fully cloud-based infrastructure with AWS and SoftwareOne. This move enhanced operational efficiency, reduced costs by 40%, and improved customer service, positioning the company as a leader in customer focus and cost-optimised innovation within the insurance industry.
These successful projects demonstrate a clear pattern: optimising cloud spending creates resources for innovation, which generates measurable improvements, leading to further opportunities for growth. Each improvement builds on the last, helping mid-market companies compete more effectively against their peers and even larger enterprises with bigger budgets.
If that flywheel process becomes an established way of working, the potential for cloud-driven growth is frankly astounding—not just in the mid-market, but for organisations of almost every size.
According to Goldman Sachs figures, cited in our own research, AI advances enabled by cloud computing could boost global GDP by 7% (almost $7 trillion) and increase productivity by 1.5% per year over the next decade.
Optimised Innovators are already tracking the same trajectory in putting cloud-driven technologies to work for their businesses. Over the next two years, 95% will be in mid- or advanced implementation of traditional AI for customer interactions, compared with 71% today. Similarly, 83% of Optimised Innovators will be midway or advanced in their use of GenAI for customer interactions, compared with just 50% today. Over that period, Optimised Innovators will also shift their focus from internal to external initiatives as their flywheels gather momentum.
This is only the start of how these pioneering organisations are capturing value from every aspect of cloud-based innovation, to benefit their business processes and gain an edge against competitors in the mid-market and enterprise arenas.
Keeping ahead in the cloud |
||
Key Performance Indicator |
Optimised Innovators |
Other Companies |
Digital ROI improvement |
Twice as likely to see improved ROI |
Baseline |
Cloud infrastructure progress |
68% significant progress |
53% |
Cloud management tools investment |
69% increasing investment |
53% |
Software applications in cloud (planned) |
70% by 2025 |
45% |
SoftwareOne can help with each of these steps.
Our services include cloud readiness assessments, migration planning, cost optimisation analysis and ongoing managed services. We work closely with clients to ensure their cloud investments deliver measurable business value, and we’re vendor agnostic—so our focus is firmly on client requirements.
Want to see the complete picture? Our full research report, Driving business outcomes through cost-optimised innovation, provides detailed insights into how some truly innovative companies are already achieving great results, along with practical guidance for your own cloud strategy.
Download your copy today and start turning cost savings and innovation into a virtuous circle for your own organisation.
Report: Driving business outcomes through cost optimised innovation
Report: Driving business outcomes through cost optimised innovation