Cloud computing adoption

Primary Drivers for Cloud Adoption in the UK

Tuesday, July 19, 2011 | Staff Writer

According to a recent Vanson Bourne research poll, if your organisation employs over 20 people in the private sector, chances are that you are at the forefront of today’s cloud revolution. However, the cloud is a mystery to some as questions of its usability are still of prime importance. The report aims to shed light on the allure of the cloud and also on the types of organisations that have been using it so far.
A breakdown of the figures shows that almost half (48%) of the 450 polled now use some form of cloud computing in their organisation and the figure is on the increase. The poll included decision makers from a wide range of industry sectors and the division of those polled was split up in relation to the company’s size and number of employees so that: 28% had less than 20 employees, 34% had 20-200 employees and 37% had more than 200.
The main findings demonstrated that key drivers for cloud adoption at present are:
Flexibility. Flexibility afforded by cloud-based services was named as a top driver by 53 per cent of poll respondents. Organisations with under 20 employees placed the greatest value on flexibility (63%), evidence that firms with limited in-house technical resources are harnessing the cloud to enhance their operational flexibility and become more competitive in the wider market. In organisations of between 20 and 200, and 200 or more employees, flexibility was still high at 51% and 49% respectively.
These findings indicate that the SMB sector (as opposed to larger organisations, which historically have been the first to adopt new technologies) has been more proactive in recognising the value of cloud migration.
Interestingly, the statistics show very little separating public and private sector organisations consideration of the top factors for cloud adoption. Flexibility came out as the number one reason for the adoption of cloud. For example both the private and public sectors cite this as a main driver for adoption with scores of 55% and 52% respectively. Therefore, the poll also showed that public and private sector organisations consider flexibility on equal terms.
Cost savings. The financial benefits of cloud migration were cited as the number one primary driver by only 16 per cent of respondents. Larger organisations were more likely to name cost savings than small organisations (22 % and 10% respectively), and companies in the public sector were more likely to name cost savings as a primary driver than those in the private sector (22% and 14% respectively). Perhaps it is not surprising that public organisations facing increasingly strict budget constraints appear to be paying closer attention to cost savings associated with cloud migration.
The findings also indicate that the cost savings also appear as a greater factor among organisations that already use cloud services, with 69 per cent more likely to name cost savings as a primary driver, demonstrating the Cloud’s ability to materialise savings over time. In short, Cloud adoption appears to be 'not always about the money'.
 Primary Reasons for Cloud Adoption
Source:  Cloud Industry Forum: Vanson Bourne research poll:  218 Respondents to this question
Low cost of adoption. Organisations seeking to expand their IT capabilities are also driven into the Cloud by low cost of adoption, the third primary driver noted in the research. Low cost of adoption was named as a driver by 14 per cent of the overall sample, indicating that organisations both large and small are using the Cloud to adapt to today’s dynamic business climate.
Agility. Cloud adoption is also being driven by agility. The ability to deliver new services, access technology quickly, and deploy new solutions is increasingly driving businesses into the Cloud. Primary drivers stated in the research that help organisations become more agile include the ability to offer new services (noted by 7 per cent of respondents), fill organisational skills gaps (6 per cent), and advantageous ROI (3 per cent). As the research indicates, businesses are using the Cloud to gain the flexibility and agility they need in order to support organisational performance through expanded and increasingly competitive IT capabilities.
In conclusion, the report shows that the allure of the cloud is the flexibility that the technology offers, the cost savings over time and the low cost of adoption. Given the current economic climes, it may be unsurprising that the cloud is becoming less and less of a mystery and is increasingly coming up trumps.  
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