Clarity in the Cloud - A global study of the business adoption of Cloud
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17 Februarie 2012 |
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KPMG ROMÂNIA S.R.L. |
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+40-21-201.22.11
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www.kpmg.ro
Executive summary
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81% of businesses are either planning their initial forays, are in early or advanced stages of experimentation or have full implementations.
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Transform your business with the cloud. This drumbeat has punctuated just about every technology and business conversation over the past few years. Fueled by hype,oversimplification and promotion, cloud provocateurs can carry on at length about what cloud is and how it can transform your business. Few can tell you what companies are actually doing to benefit from the cloud or how to create and deploy a cloud strategy that is truly transformative.
Not surprising. Cloud adoption is fraught with business and operational challenges surrounding technology, security, total cost of ownership, and the intersection with business strategy and operations. Most have very little experience with actual implementation. What’s more, few have addressedthe full impact of cloud integration with other applications and data, organizational redesign and change management, compliance, taxes, and security.
To bring some clarity to the issue, KPMG International and Forbes Insight conducted a global survey in 2011. The survey was conducted among more than 900 individuals from 15 countries worldwide. Respondents were from both the client community of end-users, with input from both IT directors and executive management in companies with more than US$200m in revenues, and cloud vendors.
From all angles, the responses showed increased readiness to accept and exploit the benefits of cloud. And while the cloud continues to have many definitions, our report highlights where it is going, underscoring that this seemingly simple and flexible solution can create complexity if not managed properly.
The real transformative impact of the cloud
Cloud is transformative in that it is creating new business opportunities as companies harness its power to efficiently facilitate new revenue, services and businesses. It is breaking down barriers in the supply chain, creating more effective and timely interaction between clients and suppliers. It is delivering speed, agility and cost reduction to IT and other functional areas within the enterprise. The transformativeimpact of cloud can readily be seen across the enterprise in areas such as HR, CRM, and IT infrastructure.
Many early adopters have implemented the cloud in areas that are self-contained, primarily in areas that are not rife with complexity and multiple applications, and that do not require integration with core enterprise applications or infrastructure. Others have pushed forward more broadly in new, start-up or evolving businesses, often with increased speed over their sister organizations burdened with legacy systems. And while there are notable ground-breakers pushing cloud to the edge, the majority has focused on controlled implementations to improve the odds of success.
Key findings include:
The cloud is commonplace, but its scope varies widely.
Over half of the businesses and government enterprises surveyed have already conducted either a full (24%) or partial (35%) cloud implementation of some functions. The vast majority has tested these new technologies and processes, and they are using them on a small scale. Some typical areas of cloud implementation are for email, sales management and other available Software as a Service (SaaS) offerings. The research notes that in 2011, 19% of the respondents indicated spending on cloud represents 10% or more of total IT expenditures with 65% citing 10% or less.
Early investment centers on Software as a Service (SaaS).
Again, the majority of early adopters are getting their feet wet using basic, available tools in the cloud. Of the respondents, 46% of planned implementations are in a SaaS environment. However, significant numbers of end users are also exploring the use of Infrastructure as a Service (IaaS) and Platform as a Service (PaaS) models.
Executives believe that cloud environments have the potential to transform business and operating models.
Eighty-seven percent say, at the very least, the coming change will be significant. This view is consistent among companies of all sizes and whether the respondents work within IT functions or business units. It is not a surprise that cloud providers believe that business and corporate IT executives underestimate the degree of change that could result from cloud adoption.
The vanguard already resides in the cloud. Right now, 81% of businesses are either planning their initial forays, are in early or advanced stages of experimentation or have full-on cloud implementations. While the scope may be controlled, and the approach measured, there is indeed activity. Remarkably, respondents at one in 10 businesses say they are already running their core IT services using cloud technology, although this number varies widely by geography.
