Emerging Markets: Emerge Leaders in Cloud Computing Adoption – II
This is the second part of a two-part article. To read the first part, see: Emerging Markets: Emerging Leaders in Cloud Computing Adoption – I
The TCS report, which was produced after surveying 606 companies across 16 industries, followed by in-depth studies of six – CTB/McGraw Hill, the Commonwealth Bank of Australia, Dell, AOL, an unnamed telecom major and an unnamed CPG company with $5 billion in revenue – provided some interesting results.
- The biggest driver of cloud applications is not to cut IT costs. Perhaps the most important finding of this exercise – the report indicates that the need “to institute new business processes and launch new technology-dependent products and services” drives adoption more than cost reduction.
- The early returns on cloud applications are impressive. As a cloud computing website, we have carried several articles attesting to the efficacy of this technology.
- Customer-facing business functions are garnering the largest share of the cloud application budget. Another important finding – the report says that marketing, sales and service account for 40% of this budget.
- Many companies are reluctant to put applications containing sensitive data in the cloud. Once again, this is something that has been addressed in multiple articles on this site. As has been repeatedly mentioned, security concerns constitute the biggest impediment to widespread adoption of cloud computing (see: Infographic: Biggest Security Concern with Cloud Computing? and LAPD Refuses To Go On the Cloud).
- Companies evaluate cloud vendors most on their security and reliability/uptime capabilities. Again, these tie in with the security aspects previously mentioned.
- The heaviest users of cloud applications are the companies that manufacture the technology hardware that enables cloud computing (computers/electronics/telecom equipment), while healthcare service providers are the lightest users. Incidentally, the latter have been the focus of one of my articles (see: Health Care’s Reservations about Cloud Computing).
- The key to adopting and benefiting from cloud applications is overcoming the fear of security risks and skepticism about ROI. These concerns have been explored with regard to the US Government in an earlier article (Does Moving to the Cloud work for the US Federal Government? ).
TCS has also published a comprehensive look at the study – its inspiration, key findings and implications – from its CEO and MD, N. Chandrasekaran.
“We have reached the inflection point in cloud computing and there is no turning back. Cloud-based applications are already a substantial piece of large corporate IT infrastructure and the early benefits achieved are too substantial to ignore. There is huge scope for growth in both developed and emerging economies, and we firmly believe that cloud computing will continue to open up opportunities for companies across many different functions,” he said.
What TCS has reported on emerging economies and cloud computing is a trend that has been visible for quite some time. To read about our earlier coverage on this issue, see:
By Sourya Biswas