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The CEO Point of View

The No-Longer-Hypothetical Case for Jumping on the Cloud
By N. Chandrasekaran, CEO and Managing Director, Tata Consultancy Services


Tata Consultancy Services has watched with great interest the ongoing development of cloud computing. We have advocated the opportunities in multiple Innovation Forums and through different media since 2004. We have sought out the best practices in using this new technology by bringing our clients, venture capital firms, startup companies, professors, industry analysts and other technology companies together to talk about the implications of this on major business and technology issues of the day.

We see cloud computing as an ecosystem play – an opportunity that requires us to work deeply with a range of entities from academia and start-ups to corporations, and technology providers –to bring world-class solutions to market. Cloud has become a key focus of our Co-Innovation Network (or COIN), which is our mechanism for collaborating with these entities.

We have invested in building capabilities of our engineers to create a suite of cloud-based solutions to help our clients capitalize on the cloud. We have been redesigning their business processes and shifting on-premises applications to the cloud; developing, testing and maintaining whole new applications for the cloud; and in some cases hosting and supporting their cloud applications.

We have developed new business models using the cloud paradigm. One year ago TCS launched iON, a cloud-based holistic IT offering for small and medium-sized businesses in India – services that can give the country’s 35 million SMBs enterprise-quality IT services on a pay-as-you-grow model. This requires no capital investments in technology and eliminates technology redundancy, thereby addressing two key concerns for capital-constrained SMBs.

We have used the cloud platform to drive financial inclusion in India and aided the expansion of rural banking services by offering the latest core banking solution engines that run on the cloud. And we have created special cloud offerings for insurance companies and banks, as well as offerings that provide certain business processes from the cloud.

There is no question that we are excited about its potential to be all over the cloud. But last fall, the question for us about the cloud was this: Does the world of large enterprises view cloud computing the same way? Are they as bullish on the cloud as we are? Are they making big bets on the cloud too?

As a result, we decided to conduct a major study to understand the expectations and the potential of this new paradigm in computing. We fielded an extensive survey that was completed by 606 companies around the world in 16 industries (most organizations came from a corporate group had more than $1 billion in annual revenue). We also engaged in in-depth interviews with six enterprises to dive well below the surface of these issues. Executives at a large bank in Australia, a leading educational assessment testing company, a large technology manufacturer, an online media company, a $5 billion consumer products company, and a major telco talked to us about their cloud activities.

We wanted to shed light on the extent to which large enterprises had adopted cloud applications and their cloud plans in the next two years. Has enterprise adoption of cloud reached an inflection point? What business applications have companies shifted from on-premises technology to the cloud? And what new opportunities is cloud opening up for IT functions that may view their role as “keeping the lights on” – of running data centers? Do they see opportunities from the cloud to create new value to their organizations?

 

What We Thought We’d Find

Going into the study, TCS viewed cloud computing as critical piece of a big, emerging puzzle: how companies can use it as a platform in combination with other technologies to create great experiences for customers who increasingly do their shopping on the mobile devices they carry in their pockets, backpacks and purses.  We saw cloud computing as a key building block for bringing the “digital consumer” to life – as important as social media, mobile technology (and apps) and “big data.”  We believe cloud makes it possible for companies to experiment with high-potential new online marketing, sales, customer service and other business processes, as well as promising new online products – all without having to make huge, fixed-cost technology investments. But were companies around the world viewing cloud applications the same way – as a tool to dramatically scale up their operations at variable costs, especially in emerging markets that had yet to prove out?

So what did we learn from our research? Our key takeaway is that as lofty as our vision may be for the long-term impact of cloud computing, we have, in fact, underestimated its potential. The research is moving us to believe that by 2020, when executives at large global companies reflect back on the major trends that shaped their businesses this decade, they will see cloud computing as one of the biggest.

The net of our findings is this: Cloud applications are an already-substantial piece of the large corporate IT infrastructure, one that is having significant impacts and is viewed to be even more important going forward. The views and activities of the companies that we surveyed and interviewed suggest there is no turning back from the cloud. The early benefits achieved are too substantial to revert to days of yore, when companies hosted all their application software on computers in their data centers and on their employees’ digital devices.

 

The Findings: We’ve Reached an Inflection Point with Cloud Applications

Every calculus lover knows that the inflection point on a curve is the place at which the curvature changes. The term “strategic inflection point” connotes a major change in the market – a point on which companies must change their offerings and/or the way they do business in order to keep up with the market.  So is cloud computing at an inflection point – the moment in which companies have embraced it as a critical technology strategy? Our study tells us the answer is a strong yes.

We asked IT executives what percent of their total applications were cloud applications. The answer: an average 12% in European firms, 19% in U.S. firms, 28% in Asia-Pacific firms and a surprising 39% in Latin American firms. In light of that, saying cloud applications have gained a toehold in large enterprises would be a gross understatement. (See Exhibit 1.)

What’s more, these same companies projected those percentages to grow significantly by 2014. For example, in European companies cloud applications are projected to double to becoming 24% of all applications. U.S. firms see cloud applications being about a third (34%) of total applications by then, when Asia-Pacific companies project them to be a full half of all their applications and Latin American companies see them becoming 56% of total applications. That’s quite a change from the last 30 years, when the vast majority of companies ran their applications from computers located on their premises.


Why Companies are Rushing to the Cloud, and the Returns They’re Getting

Why are companies embracing the cloud? Among U.S. and Asia-Pacific companies, the most important driver is not the one that many think it would be (to reduce technology costs). To be sure, cutting IT costs is a big driver. But more important was the need to standardize applications and the business operations those applications support – a critical need in an increasing number of global companies that want to establish common policies and procedures in the ways they hire people, take orders, serve customers, manage the books, and conduct other critical business activities. A major telco that we spoke to said standard cloud applications are helping business units cut IT costs and reduce its data center footprint.

Another big driver of cloud applications (especially in the U.S. and Asia-Pacific) was increasing the flexibility of applications – the ability to ramp up or down applications quickly. Online media firms are using the cloud to respond to huge variations in the demand for online services by online customers. One online media firm last year implemented its first private cloud in a new data center. It can get a new server running in minutes vs. the 6-12 weeks it took a decade ago. That’s critical when in a business where online viewers can increase in the millions from day to day or week to week.

The need to process “big data” – huge volumes of transactional and other digitized data – is also a big driver of cloud applications. About two-thirds of the U.S. companies surveyed said improving the way they gathered and analyzed data was a key factor in shifting to cloud applications.

Perhaps the most important piece of evidence that companies will embrace cloud applications in a big way is the value they have achieved to date from such applications. By shifting on-premises applications to the cloud, the companies we surveyed reduced their IT costs an average 31% in U.S. firms and 28% in European companies. (See Exhibit 2.) To us, this is not surprising. Such savings come from such sources as the ability to purchase network capacity and storage far less expensively, locate data centers in areas with lower post costs, and institute more highly automated data centers. By using public clouds (Internet services provided from data centers that host many companies’ applications), companies are able to tap into powerful application software that would have been cost-prohibitive for many.

But cost reduction is by no means the only benefit companies had generated from cloud applications.  Those that launched whole new applications in the cloud — applications that might have been economically infeasible had they required costly new computer hardware — reported 13% (U.S.) to 32% (Latin America) average revenue gains from their new, cloud-based products and services. Whether they are replacing on-premises applications or representing whole new applications, the cloud is generating substantial business value in many companies.

To examine the impact of cloud applications up close, we interviewed executives at six companies who shared their cloud experiences. As an example of the cost-reduction potential of cloud, the previously mentioned telecommunications firm moved all HR applications to the cloud last year, standardizing on enterprise software packages. The company believes cloud applications hosted in its own data centers (so-called “private clouds,” which would eventually house 80% of its applications) could cut IT costs by $100 million to $200 million annually and its number of data centers 80%. Another example is a large financial institution based in Sydney, which reduced its cost of computer storage 40% by putting applications in the cloud.

But those stories just speak to the cost benefits of cloud applications. The companies we surveyed and interviewed said the business process improvement and revenue benefits were even more important. After beginning to shift on-premises applications to the cloud in 2007, the previously mentioned bank in Australia has been using the cost savings from the cloud to develop new banking services  – apps that present offers on financial products to customers in real time – particularly on mobile devices, for instance.

Another example of a company that sees cloud applications to be critical to developing new products is one of the three largest U.S. suppliers of school assessment tests. The company has been shifting assessment testing of U.S. K-12 students from paper to online. Because many states are expected to require online assessment tests this decade, the company is experimenting with cloud-based solutions. It envisions having to deliver and score more than 40 million tests in a two-week period by 2014. The cost of building the technology infrastructure for such a short time would be enormous. That’s why the company is all over the cloud.

Companies have big plans to shift many more applications across all their business functions to the cloud over the next two years, particularly in customer-facing business processes of marketing, sales and customer service.  Firms like the technology manufacturer that we interviewed are using cloud systems aggressively in their marketing campaigns, starting with online games (so-called gamification applications) that appeal to customers.


Certain Industries are in the Lead

Our survey found four industries have been much more aggressive in adopting cloud applications (in public or private clouds) than other industries. We asked companies to tell us how many cloud applications they were using in 10 core business functions: marketing, sales, R&D, manufacturing/operations, HR, finance, customer service, legal, distribution and procurement. At the top of the list were the computer/electronics, financial services, industrial manufacturing and telecom services industries (averaging with more than six cloud applications per function). At the bottom were healthcare services and chemicals companies, averaging less than four cloud applications per business function. (See Exhibit 3.)

Yet despite the strong embrace of the cloud in many industries, most companies have remained somewhat conservative about what systems and data they put in public clouds – in the data centers of third parties that host many companies’ applications and IT infrastructure. While our survey found that the majority of U.S., Asia-Pacific and Latin American companies would consider putting their core applications in private clouds, only a minority today would put core applications in public clouds. The reason is fear of data security and privacy. The companies we surveyed in all four regions said their biggest challenge to leveraging the cloud is overcoming their concerns about IT security.

Thus the challenge for companies and cloud vendors like TCS is clear: to greatly reduce the fear that most large companies have about putting mission-critical information systems and sensitive data in public clouds. Large companies now want to shift many applications to the cloud, and they realize that if they are to get the greatest cost savings, it will have to be to public clouds (where cloud vendors can spread their costs across hundreds or thousands of customers). But customers will need to be sold on cloud vendors’ information security promises. That will require bringing industrial-strength practices to information security and maintaining systems availability. All this will separate the cloud-proficient vendors from the cloud pretenders.

Stories like these, and the responses of the 600+ companies that we surveyed, show that the cloud is beginning to have a profound impact on a number of industries. The benefits we’ve uncovered should remind business and IT executives that where there is smoke, there is fire. As an increasing number of companies publicly discuss the benefits of cloud computing, we expect many more enterprises will rush to adopt cloud applications in every facet of their business.

Now is the time for business and IT executives to look strongly at the cloud – both private clouds dedicated to the needs of one company or public clouds in which multiple companies can be served. Our research shows that companies have moved beyond the inflection point. The next few years will be ones in which market leaders are companies who quickly capitalized on the cloud.

Key Success Factors in Capitalizing on the Cloud

The keys to adopting and benefiting from cloud applications are overcoming fear of security risks and skepticism about ROI.


  • Comparing responses by region of world

Any technology that is as hyped as much as the cloud (remember adulation over artificial intelligence, client-server computing, and the Web in its early years?) generates an almost equal amount of skepticism from those who have seen numerous tech evangelists over time. Cloud computing, too, has drawn its fair share of unabashed advocates and hard-bitten skeptics.

And so when we asked our 606 survey respondents around the world to rate the key success factors in generating benefits from the cloud from a list we provided, the most highly rated success factors were overcoming two fundamental fears about cloud computing (see Exhibit X-1):

  • That cloud is a highly risky technology from a data security standpoint.  Overcoming this fear was rated the most important factor in generating benefits from cloud in every region. In other words, they seem to be indicating to us, the benefits are there – one just has to make sure that the pursuit of those benefits is a safe pursuit.
  • That the benefits of cloud are a mirage.  The second most important success factor in US, Asia-Pacific and Latin American companies was demonstrating returns on cloud investments earlier in the process. For European companies, the third most important success factor was quantifying the potential benefits of cloud upfront. (It was tied for first in importance in Latin America.) Both issues point to the skepticism over whether cloud computing can deliver on the benefits that have been bandied about everywhere – saving big technology costs, standardizing the ways a company does business around the world, and much, much more.

In the U.S., near the bottom of the list of success factors were two that we thought would carry more weight before we fielded the survey: getting the CEO or head of a business function to drive a cloud initiative rather than the IT organization, and overcoming the IT function’s fear of a diminished organizational role from the adoption of public clouds – i.e., from shifting in-house applications to a cloud vendor’s data center. (See Exhibit X-2 below.)

 


TCS Cloud Study – 10 Key Findings
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Willingness of Companies to Use Public vs. Private Clouds

Despite a significant shift to cloud applications, most companies (especially in Europe) remain conservative about which applications they put in public clouds. Less than 20% of U.S. and European companies would consider or seriously consider putting their most critical applications in public clouds. But 66% of U.S. and 48% of European companies would consider putting core applications in private clouds.


  • Differences by region of world

With cloud applications having made more than a foothold in large companies around the world, it might appear that senior executives are putting aside their fears about the security of data and systems in the cloud. But that would be a wrong presumption.

Business and IT executives appear to largely endorse the use of applications hosted in “private” clouds – data center(s) devoted to the computing needs of a one company (whether or not that data center is owned by the company or a third party). But they are not so trustful of applications running in “public” clouds – data centers that third parties run for numerous customers.

That is what we found from the answers to a series of questions in our survey to gauge interest in using public and private clouds for two types of applications software: “core” (strategic applications that provide competitive advantage) and “non-core” (applications that are necessary for doing business but which don’t deliver a competitive edge).

In the U.S., for example, only 18% said they would consider or highly consider putting core applications in public clouds; in contrast, a slight majority (51%) said they would not consider it at all or only slightly consider it. Nonetheless, two-thirds (66%) said they would consider or highly consider putting core applications in private clouds. Only 3% said they would reject the idea out of hand, vs. 30% who would reject putting core apps in public clouds.

Putting non-core applications in the cloud was an entirely different matter. Some 42% of our U.S. respondents said they would consider or highly consider putting non-core apps in public clouds – more than said they would not consider it at all or would only slightly consider it (30%).  And nearly three-quarters (72%) said they would consider or highly consider putting non-core apps in private clouds, a concept rejected by only 3%.

European Companies are Even More Conservative About the Cloud; Latin American and Asia-Pacific Companies are Less Conservative

Relative to their counterparts in Asia-Pacific and Latin America, U.S. and European companies were far less likely to put core applications in public clouds. But they and their counterparts in Asia-Pacific and Latin America were far more likely to put core apps in private clouds dedicated to their organizations. Still, European companies were very conservative on this measure, with less than half (48%) saying they were willing to put core apps in private clouds (vs. 79% of the Latin American companies that we surveyed).

The relatively high percentage of Latin American (30%) and Asia-Pacific (41%) companies that are willing to consider putting strategic applications in public clouds signifies that they have a higher risk tolerance than their colleagues in Europe (especially) and the U.S. Thus, it appears that private clouds are far more acceptable to most large companies today than public clouds – even though private clouds can’t deliver the cost savings of public clouds, which share costs among many clients.

 


TCS Cloud Study – 10 Key Findings
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Which Business Functions are Using the Most Cloud Applications

Customer-facing business functions are garnering the largest share of the cloud application budget. Marketing, sales and service are capturing at least 40% of that budget in all four regions. The experiences of Dell’s enterprise sector online marketing function shows how one large company is trying to get closer to customers through cloud marketing applications. And a new private cloud at Web media company AOL Inc. explains how a technology-dependent company can make its technology more responsive and cost-effective.


 

  • How the cloud application budget is being divided (by regions of world)
  • How companies plan to allocate their cloud budgets in 2014

With cloud applications representing anywhere from 12% (Europe) to 39% (Latin America) of total applications at the companies we surveyed, it is clear that they have become a fixture in large corporations. But we also wanted to know exactly how companies were allocating their cloud application budget, business function by business function.

So we asked our respondents to estimate how their companies had apportioned their spending on cloud applications across 10 core business functions: customer service, marketing, sales, manufacturing (or the equivalent of “production” or “operations” in service firms), research & development, human resources, distribution, purchasing, finance, and legal.  Furthermore, we asked companies to estimate their budget allocations at present (for 2011) and their projections for 2014.

For 2011, spending on cloud applications is, for the most part, spread well across all 10 functions. Across all four regions of the world, not one business function had commanded more than 19% of the total cloud applications budget. In Latin America, customer service cloud applications were 19% of total cloud applications spending. And in Europe, the marketing function garnered the largest slice of the total cloud applications budget, at 18%.

On the other end of the spectrum, none of the 10 business functions received an average share of less than 4% of total cloud applications spending in any region of the world. Distribution and purchasing received 4% of the total cloud applications budget in Europe, and legal received 4% of the average cloud applications budget in Asia-Pacific companies.

Despite that fragmented spending, in all four regions three functions collectively commanded at least 40% of total cloud applications investments: customer service (15% of total spending across all four regions), marketing (14%) and sales (13%). Of course, these three functions are “customer-facing”: their operations directly touch a company’s customers on a daily basis. In contrast, three functions that don’t touch customers every day – legal, purchasing/procurement and HR – collectively accounted for only 19% of the total cloud applications budget.

There were a few regional exceptions to overall trend. In Asia-Pacific companies, the manufacturing/production function accounted for 14% of total cloud applications spending – twice the percentage of U.S. companies. In Latin America, companies spent more on manufacturing/production cloud apps (12% of total cloud applications spending) than they did on marketing apps.

Why are companies in all four regions putting more of their cloud applications investments in these three customer-facing functions? We believe it’s in part because such cloud applications are more directly able to generate revenue or increase customer loyalty than cloud applications supporting back-room functions. The other part of it is that companies are starting to recognize the value of cloud computing for processing and analyzing enormous volumes of customer data – particularly data generated from customers and prospects on the Web from social media.

In the U.S., 58% of companies had shifted to the cloud on-premises applications that reported and analyzed sales data. Nearly half (45%) had created entirely new applications in the cloud for sales analysis and reporting. And 44% of U.S. companies plan by 2014 to have new cloud applications that collect and analyze social media data, four times the number of companies that had such cloud applications in 2011.

How Companies Plan to Allocate the Cloud Applications Budget in 2014

The companies we surveyed believe that sales, marketing and customer service will continue to snare the largest shares of their cloud applications investments through 2014. Among U.S. companies, marketing (15% of all cloud applications spending), sales (15%) and customer service (14%) will lead the way. In Europe, marketing (16%), sales (19%) and customer service (10%) will account for 45% of all cloud apps spending. Asia-Pacific companies expect to continue investing more heavily in cloud manufacturing apps (15% of the total cloud apps budget), although they project that 35% of total spending will go to marketing, sales and service. And Latin American companies expect marketing, sales and service cloud apps to be 44% of total cloud apps spending.

 


TCS Cloud Study – 10 Key Findings
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Summary of Key Findings

In the fall of 2011, Tata Consultancy Services (TCS) conducted an extensive study on how 600+ primarily large companies (most with more than $1 billion in revenue) were using applications in “the cloud” – software residing on remote data centers that organizations access via the Internet. Such data centers can be run by third parties that co-locate applications of multiple companies (so-called public clouds). Or these data centers can be run for the sole use of one organization, operated by that organization itself (private clouds).


Public cloud computing vendors provide shared computing resources (hardware and software) to companies that don’t want to incur the cost of such IT infrastructure. A cloud vendor’s offerings typically provide computing resources on demand, automated system deployment and scaling, and pay-per-usage pricing.  There are three primary benefits of cloud services: computing resources on-demand (which saves companies from having to plan ahead for securing such resources); the elimination of upfront commitments to IT (and thus avoid purchasing new hardware, software or whole data centers for computing demand that may be uncertain in the future); and pay-per-usage pricing (e.g., processors by the hour), which reduces the amount of computing resources that are sitting idle.

TCS believed that while numerous studies have been published on cloud computing since 2008, none had deeply explored how business functions such as marketing, sales, R&D, distribution, manufacturing, operations, finance and others were using cloud applications (also known as “software as a service,” or SaaS).

We designed the study to explore five core issues:

  • The factors that are driving companies to put their applications software in the cloud – whether those cloud applications were shifted from computers on-premises or were entirely new applications that had no on-premises predecessors
  • Which cloud applications have been adopted by what business functions and why
  • The benefits they had generated to date from shifting on-premises apps to the cloud and from launching entirely new apps in the cloud
  • The success factors to generating buy-in, adoption and benefits
  • Their future plans for cloud apps – specifically, what types of cloud apps their business functions planned to have by 2014

 

We conducted several research streams. The first was quantitative research: an online survey of 600+ companies from four regions of the world.  The survey was extensive and polled the experiences of both senior business functional managers and corporate IT executives.

The second stream of research was in-depth interviews with six companies on their attitudes and experiences with cloud applications.  Their stories shed further light on what’s driving companies to shift existing applications or put new applications in the cloud, the benefits and competitive advantages those applications are generating, and the challenges to getting the organization to adopt cloud applications (both those in public and private clouds). These companies were:

  • CTB/McGraw Hill – an educational assessment testing company that believes cloud applications will help it fund the investments it needs to continue to move its school assessments from a print to an online world.
  • Commonwealth Bank of Australia – One of the four largest Australian banks has moved dozens of sales, customer service, HR, operations and IT applications to the cloud over the last three years. The result: the ability to offer bank customers a range of innovative new banking services.
  • Dell Inc. – The $61 billion technology company has been using the cloud to provide engaging online marketing programs that win over customers and keep them coming back for more.
  • Major telecommunications services company – Why a telco is rapidly shifting on-premises applications to the cloud in order to create common applications and cut millions of dollars in data center costs.
  • Large consumer products company – How cloud computing has helped the $5 billion company more effectively field consumer complaints while keeping technology costs low.
  • AOL Inc. – The cost savings and other benefits that the iconic consumer online media company has gained from a new private cloud.

 

Our final stream of research was capturing the experiences of TCS cloud experts – professionals who are working with companies on a daily basis about cloud computing issues. From our analysis of the data from all three research streams, we uncovered 10 findings that explain how large companies around the world are using cloud applications, to what benefit, with what concerns, and with what future plans:

Finding No. 1Despite the hype, cloud applications do not rule the large corporation, although their usage is expected to increase significantly. Cloud applications are still in the minority of all applications in companies (19% of the average large U.S. company’s applications, 12% in Europe, 28% in Asia-Pacific, and 39% in Latin American companies). But they expect the ratio of cloud to on-premises applications to increase greatly by 2014.  The case of Australia’s largest bank, Commonwealth Bank of Australia, illustrates why many companies have gained a voracious appetite for cloud applications. (Read more)

Finding No. 2The biggest driver of cloud applications is not to cut IT costs.  IT cost reduction is an important factor, but not the most important. Rather, standardizing software applications and business processes across a company (in the U.S. and Asia-Pacific) and ramping systems up or down faster (in Europe and Latin America) are the most highly rated drivers for shifting on-premises applications to the cloud. And the factors driving companies to launch entirely new applications in the cloud are quite different – to institute new business processes and launch new technology-dependent products and services. The case of assessment testing company CTB/McGraw-Hill shows why cloud computing will become a key tool for delivering pioneering IT-enabled offerings. (Read more)

Finding No. 3The early returns on cloud applications are impressive. Companies using cloud applications are increasing the number of standard applications and business processes, reducing cycle times to ramp up IT resources, cutting IT costs, and launching a greater number of new products and processes. The story of a major telco shows the ambitions of the some of the most aggressive cloud adopters. (Read more)

Finding No. 4Customer-facing business functions are garnering the largest share of the cloud application budget.  Marketing, sales and service are capturing at least 40% of that budget in all four regions. The experiences of Dell’s enterprise sector online marketing function shows how one large company is trying to get closer to customers through cloud marketing applications.  And a new private cloud at Web media company AOL Inc. explains how a technology-dependent company can make its technology more responsive and cost-effective. (Read more)

Finding No. 5Many companies are reluctant to put applications with sensitive data in the cloud. In the U.S. and Europe, the applications least frequently shifted from on-premises computers to the cloud were those that compiled data on employees (e.g., payroll), legal issues (legal management systems), product (pricing and product testing), and certain customer information (e.g., customer loyalty and e-commerce transactions). Still, some companies had shifted applications with customer data to the cloud, especially in customer service, and many planned to shift a number of customer-related applications to the cloud by 2014. (Read more)

Finding No. 6The heaviest users of cloud applications are the companies that manufacture the technology hardware that enables cloud computing (computers/electronics/telecom equipment), while healthcare services providers are the lightest users (in terms of average number cloud apps per business function).  (Read more)

Finding No. 7The 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. We show how a large consumer products company uses the cloud to respond rapidly and effectively to consumer issues around the world. (Read more)

Finding No. 8Despite a significant shift to cloud applications, most companies (especially in Europe) remain conservative about which applications they put in public clouds. Less than 20% of U.S. and European companies would consider or seriously consider putting their most critical applications in public clouds. But 66% of U.S. and 48% of European companies would consider putting core applications in private clouds. (Read more)

Finding No. 9The keys to adopting and benefiting from cloud applications are overcoming fear of security risks and skepticism about ROI. (Read more)

Finding No. 10Companies evaluate cloud vendors most on their security and reliability/uptime capabilities – and far less on their price. This was the case in all four regions. In fact, price typically finished at the bottom of a list of nine factors in making the cloud application purchasing decision. (Read more)