-- 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 per cent 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 per cent worldwide).
-- Furthermore, nearly two in three IT executives worldwide (65 per cent)
and four of five in Canada (80 per cent) 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 per cent worldwide) are not
using cloud computing systems at this time.
-- More than 80 per cent of those who use only internally owned IT
systems do not plan on integrating any form of cloud computing in the next
12 months.
Kaytek Przybylski, Capability Director with Avanade Canada, 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 and it's very encouraging to see that Canadian firms are
ahead of the curve when it comes to cloud familiarity and usage.
Nevertheless, international concerns 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
in Canada and abroad to develop a strategy for deploying cloud-based
services today and build a long-term roadmap to capitalize on the business
value of cloud computing in the future."
Canadian Findings
Despite concerns over security and control, companies based in Canada are
exploring cloud computing technologies.
-- Eighty per cent of respondents in Canada report that the uncertain
economy will likely lead them to adopt new technologies to save money or
remain competitive.
-- Nearly half (49 per cent) of Canadian respondents claim to be early
adopters of new technologies, often trying them before anyone else (in line
with the 47 per cent of global respondents that claim to be early
adopters).
-- A majority of respondents in Canada (71 per cent) were familiar with
cloud computing compared to 61 per cent worldwide.
-- Thirty-seven per cent of Canadian 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.
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 per cent).
-- React more quickly to market conditions (62 per cent).
-- Gain access to the latest technologies (51 per cent).
-- Improve ability to be flexible (70 per cent).
-- 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
Przybylski. "Avanade's mission is helping companies navigate change and
realize the benefits of new technology options."
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: Chris Wood 416-979-1120 ext.315