-- By a 5-to-1 ratio, executives report that they trust existing
internal systems over cloud-based systems due to fear about
security threats and loss of control of data and systems.
-- At the same time, the majority of respondents reported that their
current internal systems are too expensive.
-- Meanwhile, early adopters of cloud computing report they are
increasing their investments in this technology after seeing
reduced up-front IT costs and improved agility to respond quickly
to market conditions.
The following data shows how companies are struggling with change and how
to increase productivity with fewer resources:
-- More than 50 percent of companies surveyed use technologies to cut
costs. And, half of all respondents say they adopt new technologies
to save money.
-- C-level executives and IT decision makers overwhelmingly agree that
cloud computing is a real technology option (71 percent worldwide).
-- Furthermore, nearly two in three IT executives worldwide
(65 percent) and four of five in the United States (80 percent)
believe cloud computing reduces up-front costs.
-- Four out of five respondents report that existing internal IT
systems are too expensive.
-- While nearly half of companies consider themselves early adopters of
new technologies, the majority of companies (61 percent worldwide)
are not using cloud computing systems at this time.
-- More than 80 percent of those who use only internally owned IT
systems do not plan on integrating any form of cloud computing in
the next 12 months.
Tyson Hartman, Avanade Global Chief Technology Officer, said: "This global
study reveals that business and IT leaders recognize the business benefits
of cloud computing for making a meaningful difference in their
organizations. At the same time, fears about security and control of data
are limiting its broad adoption. One of the pressing issues that lies
before our industry is addressing these perceived barriers and helping
businesses develop a strategy to begin deploying cloud-based services today
and build a long-term roadmap to capitalize on the business value of cloud
computing in the future."
The Business Benefits of Cloud
The results of this survey echo the adoption of many fundamental
technologies that have become widely used in the workplace, including the
Internet, e-mail and social media. In each case, fear of loss of control
and security threatened adoption of those technologies. While companies
recognize that there are inherent security concerns, cloud computing
represents a new model for enterprise computing. Data that supports the
business value of cloud-based systems includes:
-- Respondents recognize that cloud computing allows companies to:
-- Focus on the core business (65 percent).
-- React more quickly to market conditions (62 percent).
-- Gain access to the latest technologies (51 percent).
-- Improve ability to be flexible (70 percent).
-- Nearly one-third of companies currently using cloud-based systems
have increased their use of cloud computing in today's economy after
seeing the benefits it can bring.
-- Not only do companies agree that cloud computing has lower up-front
IT costs, but respondents also indicated that cloud computing is the
best option for ensuring lower ongoing costs (operational expenses).
"Companies need to continually embrace best practices and consider new
technologies in order to remain competitive in this global market. This
research shows cloud computing may be the next wave of IT evolution," says
Hartman. "Avanade's mission is helping companies navigate change and
realize the benefits of new technology options."
U.S. Findings
Despite concerns over security and control, companies based in the U.S. are
more willing to adopt cloud computing technologies than their global
counterparts.
-- Two-thirds of the respondents in the U.S. (66 percent) claim to be
early adopters of new technologies, often trying them before anyone
else (only 47 percent globally claim to be early adopters).
-- Overwhelmingly, 91 percent of U.S. respondents were familiar with
cloud computing compared to 61 percent worldwide.
-- More than half of U.S. companies surveyed report they are currently
utilizing a combination of cloud computing and internally owned IT
systems compared to only one-third of companies worldwide.
About Avanade
Avanade is a global IT consultancy dedicated to using the Microsoft
platform to help enterprises achieve profitable growth. Through proven
solutions that extend Microsoft technologies, Avanade helps enterprises
increase revenue, reduce costs and reinvest in innovation to gain
competitive advantage. Avanade consultants deliver value according to each
customer's requirements, timeline and budget by combining insight,
innovation and the talent of our global workforce. Avanade, which is
majority owned by Accenture, was founded in 2000 by Accenture and Microsoft
Corporation. Avanade has more than 9,000 professionals serving customers in
24 countries worldwide. Additional information can be found at
www.avanade.com.
About the Survey
The 2009 Cloud Computing survey, conducted by Kelton Research, interviewed
502 C-level executives and IT decision makers across 17 countries in North
America, Europe and Asia-Pacific. For more information on this study and
Avanade's cloud computing expertise, please visit www.avanade.com.
Avanade and the Avanade logo are registered trademarks or trademarks of
Avanade Inc. Other product, service, or company names mentioned herein are
the trademarks or registered trademarks of their respective owners.
Contact Information: MEDIA CONTACTS: Avanade: Charlie Zaragoza (206) 239-5893 PR Agency: James Boike (206) 268-2213