Cost savings driving cloud adoption in Ireland

Pro

9 May 2013

The latest Cloud Index report shows that overall adoption of cloud computing in Ireland is increasing, with particular uptake in smaller organisations.

The joint Microsoft and Amárach index is in its second year and has seen the overall cloud computing score for the country rise from 3.2 to 3.6 out of 10.

The assessment is based on the mean score for responses to a question relating to those organisations’ current adoption of cloud computing.

The report suggests that this year’s score is indicative of "a steady increase in cloud implementation across organisations in Ireland". Significant rise was reported among organisations between five and 50 employees where the average score rose from 2.4 to 3.8.

Despite the overall rise in the adoption of cloud computing, the primary inhibitors remain unchanged, with security and privacy concerns seeing an increase in their respective scores. Some 57% of IT decision makers cited security concerns and 29% to privacy, up from 39% and 25% respectively last year.

According to the survey report, "IT decision makers overwhelmingly said the top benefit of adopting the Cloud is the cost saving it allows, followed by greater workplace mobility and efficiency".

It is interesting to note then that 64% of cloud adopters said the technology had been met their expectations.

Sixty seven per cent of respondents said that cloud computing could help them address the external and business challenges being faced, up from 55% in 2012.
Cloud-based email and document sharing are the primary solutions organisations are considering adopting.

Curiously, 45% said Government guidelines would help them as they contemplate cloud adoption. This perhaps correlates closely with those expressing security concerns, as they may feel that clear guidelines for security measures in adoption could allay their fears. However, it is debateable as to whether government is the right entity to establish such guidelines.

Among those who have not adopted cloud computing in their organisations, 40% intend to engage in a pilot programme within the next nine months.

The Index also revealed that 48% of those surveyed see the cloud as a business imperative, rather than simply as an IT solution. The report goes on to say, "This number reflects the fact that the cloud is now enabling businesses which operate in areas that are completely removed from the IT sector to achieve efficiencies and operate in a superior way".

"Cloud computing is an area which we have targeted as part of our Action Plan for Jobs, and since taking office we have put in place a series of changes to support growth in this sector. In 2013 we are implementing a range of further measures, including trebling the number of Government-supported companies providing services from cloud platforms," said Minister for Jobs, Enterprise and Innovation, Richard Bruton TD speaking at the launch of the Cloud Index.

"The findings published today by Microsoft and Amárach, showing that over half of Irish companies have deployed cloud solutions in their businesses, are very welcome. Substantial progress is being made in this area, but we must do more if we are to capitalise fully on the opportunities that the cloud offers to the Irish economy. I am determined that, through continued strong implementation of our plan, we can build on this progress to help create the jobs we need".

The Cloud Index was launched as part of National Cloud Week, organised by Microsoft with the aim of raising "awareness of the benefits of Cloud and to encourage organisations in the public and private sector to deploy cloud solutions to facilitate growth and drive efficiencies".

"In this year’s Index we see a great deal of evidence that the Irish discourse about the Cloud is maturing," said Cathriona Hallahan, managing director, Microsoft Ireland. "The Microsoft/Amárach Cloud Index, which is based on organisations current adoption of cloud computing, stands at 3.6 out of 10, up from 3.2 last year. This is good progress on a year ago but what I think is very important for us to look at this year is not why people are choosing the Cloud but instead, what are the barriers that are preventing more people to pilot and ultimately move to the cloud. This National Cloud Week, we have hosted a series of events and launched initiatives aimed at deepening the conversation about the Cloud and encourage the deployment of the Cloud by organisations both in the private and Public Sector."

"We are seeing that managers accept the cost saving and productivity message yet the areas of privacy and security continue to be a concern. As a leader in Cloud we, along with our colleagues in industry partnering with Government, have a responsibility to educate people about these areas to help them understand that the risks are similar to any on premises solution that they might already deploy."

"There are many positives that we can take from the Index. We can see that an encouraging 40% of those who haven’t adopted the Cloud yet are planning to pilot it in areas such as email and document storage. We look forward to continuing to work with organisations throughout the country to help move Ireland further into the Cloud. I would also like to recognise the continued work of the Government in prioritising Cloud as a central tenet of its economic recovery efforts. The prioritisation of Cloud in the Action Plan for Jobs document published earlier this year reinforces the contribution that Cloud can make to the job creation priority."

 

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