Cloud-native applications, built to excel in the cloud, are driving a transformative shift in the business world.

We spoke to 900 executives to see how a cloud-native approach was driving change at their organisations. We discovered a world of what we call cloud-native leaders, and cloud-native laggards. The leaders, who build more than 20% of their applications in the cloud, are driven by the need to improve velocity, collaboration, and customer experience. Cloud native applications enable leaders to better respond to changing market demands and more quickly grasp opportunities than their laggard counterparts.

The proportion of apps that businesses develop which are cloud native will more than double by 2020. However, this will bring its own set of challenges. CIOs and business leaders are often not aligned on IT. Other challenges include skills shortages and battling ingrained cultures that are opposed to a cloud-native approach. On the technical side of things, there are difficulties integrating with legacy infrastructure and being locked in to vendor contracts.