Subscribe / Unsubscribe Enewsletters | Login | Register

Pencil Banner

East beats West in cloud adoption: Study

Zafar Anjum | March 27, 2012
A TCS survey reveals that companies in Latin America and Asia Pacific have a much higher proportion of cloud applications to total applications.

Large companies in Latin America and Asia Pacific are the most aggressive adopters of the cloud computing paradigm, while their European and US counterparts remain conservative about shifting applications to the cloud.

This picture of cloud computing adoption emerges from a study by Tata Consultancy Services (TCS), India's top IT services provider with offices in 42 countries.

The survey involved senior managers and corporate IT executives from over 600 large companies across the globe.

According to the results shared with media today, the average Latin American company has almost two fifths (39 percent) of its total applications in the cloud. Asia Pacific follows closely behind with over a quarter (28 percent). In contrast, less than one fifth (19 percent) of the average US company's applications are hosted in the cloud. In Europe, the figure is closer to one tenth (12 percent).

"We have reached the inflection point in cloud computing and there is no turning back," N Chandrasekaran, CEO and MD of Tata Consultancy Services said. "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."

Security fears still matter

According to the TCS study, what's hampering the adoption of cloud technologies is the fear of security risks. While companies globally admitted this is the biggest challenge to leveraging cloud today, those in the US and Europe remain especially conservative in their approach to cloud adoption for fear of data security breaches, the report revealed.

Which apps to put in the cloud?

TCS said that Western companies are more sensitive about which applications they put in public clouds. Companies in Europe and in the US also showed a reluctance to put applications with customer data in the cloud.

"Only a fifth (20 percent) of US and European companies would consider or seriously consider putting their most critical applications in public clouds. Yet two-thirds of US (66 percent) and almost a half of European companies (48 percent) would consider putting core applications in private clouds," said TCS in a statement.

Customer-facing businesses more gung-ho on clouds

Interestingly, customer-facing business functions are garnering the largest share of the cloud application budget. The study reveals that marketing, sales and services capture at least two fifths of the budget across the four regions, with companies citing the desire to get closer to customers through cloud marketing applications as one example.

In industry terms, healthcare services, automotive and computer hardware are in the lead in leveraging the cloud.


1  2  Next Page 

Sign up for MIS Asia eNewsletters.