Differences in Cloud Benefits by Region of World



The most aggressive adopters of cloud applications are companies in Asia-Pacific and Latin America. They report having much higher percentages of cloud apps to total apps – and bigger results from cloud apps than their peers in the U.S. and Europe.


  • Contrasting US, European, Asia-Pacific and Latin American companies in cloud benefits achieved to date

Many articles have been published over the last decade about how emerging economies in Eastern Europe, Latin America and Asia-Pacific have leapt ahead of the advanced economies in their telecommunications networks. By establishing cellular networks rather than continuing to invest in traditional wire-and-telephone-pole landline networks, these emerging economies have built telecommunications systems that offer higher-speed networks for mobile phones. That, in turn, means their mobile phones can do a lot more bandwidth-intensive tasks than the telecommunications networks of advanced economies: television on demand, payments through mobile phones, and the like. Cellular networks have, in effect, enabled many emerging economies to leap ahead of their more advanced counterparts.

The findings of this study suggest that a similar phenomenon may be happening with cloud technology.  The companies we surveyed in Latin America and Asia-Pacific were much more aggressive adopters of cloud (as measured by the percentage of total applications that were cloud applications) than were US and European companies.

Are smaller Latin American companies leading the way on cloud? On the contrary: In companies of less than $1B in revenue, 36% of their total applications software is in the cloud. At companies of greater than $1B in revenue, 42% of their applications are cloud applications. Large Latin American companies appear to be leading the way in the cloud.

Greater Usage of Cloud Means Greater Benefits

The companies we surveyed in Latin America and Asia Pacific were also bigger beneficiaries of cloud – they reported generating much larger average benefits. This was true for both applications they shifted from on-premises computers to the cloud, as well as for entirely new applications they placed in the cloud. Latin American companies in particular reported much larger benefits from shifting on-premises applications to the cloud in the seven metrics that we used – improvements that were in the range of 50%-60% vs. the largely 30% range of improvements for U.S. and European companies.

For the six metrics that we tracked in benefits from launching entirely new cloud applications, Latin American companies, too, far exceeded their peers in the U.S. and Europe. Latin American companies reported improvements in the 20%-30% range vs. in the teens for U.S. and European companies.

Perhaps Latin American and Asia-Pacific companies see the cloud as a way to technologically leap ahead of their counterparts in the U.S. and Europe, many of which are saddled with aging IT infrastructures that are not so easily or quickly moved to the cloud.

 


TCS Cloud Study – 10 Key Findings
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