Friday, April 13, 2012

Businesses of all Sizes are Adopting Cloud Apps, Studies Find

Cloud-based applications are 39 percent of Latin American enterprise apps, 19 percent of the average large U.S. company’s applications, 12 percent of European enterprise apps and 28 percent of Asia-Pacific enterprise apps, according to a survey by Tata Consultancy Services.


But other studies also show that small businesses and medium-sized businesses also are adopting cloud-based apps at a significant level. 


Some 39 percent of small and medium-sized businesses are expected to be paying for one or more cloud services within three years, an increase of 34 percent from the current 29 percent, according to a Microsoft study.


The clear majority of enterprise applications used in 2011, including 81 percent of apps used by  U.S. companies and 88 percent of European cloud apps, were resident on computers located on enterprise premises, the Tata study suggests.

In Asia-Pacific, on-premises applications were 72 percent of all applications in 2011, while 28 percent were based in the cloud. In Latin America, 61 percent of all corporate applications software were on-premises, compared to 39 percent that were in the cloud.

Tata expects matters to change by 2014, though. American company executives  projected cloud applications to increase from 19 percent of all applications (cloud and on-premises) to 34 percent by 2014. 


Microsoft predicts that the number of cloud services SMBs pay for will nearly double in most countries over the next three years.

The findings show an increasing opportunity for hosting service providers to profit in the cloud from offering services such as collaboration, data storage and backup, or business-class email.

SMBs paying for cloud services will be using 3.3 services, up from fewer than two services today.

The study also suggests that past experience with support from a service provider is a key driver of service provider selection among SMBs. Some 82 percent of SMBs say buying cloud services from a provider with local presence is critical or important.

The larger the business, the more likely it is to pay for cloud services. Some 56 percent of companies with 51 to 250 employees will pay for an average of 3.7 services within three years.

Within three years, 43 percent of workloads will become paid cloud services, but 28 percent will remain on-premises, and 29 percent will be free or bundled with other services, Microsoft also predicts.

The European companies surveyed by Tata expected that cloud applications as a percent of total applications would double, from 12 percent in 2011 to 24 percent  by 2014.

In Asia-Pacific and Latin America, cloud applications are expected to be at least half of total corporate applications by 2014, including 50 percent for Asia-Pacific companies and 56 percent for Latin American firms.

Precisely what that might mean for service providers offering cloud computing infrastructure is not so clear. Even where a service provider does not offer any hosting services, it gains when enterprises adopt cloud computing approaches, since cloud computing tends to increase the need for broadband in several forms.

Demand for mobile broadband grows, while fixed network capacity needs also tend to grow. In that sense, cloud computing drives bandwidth requirements and access and transport revenues.

When a service provider offers rack space and hosting services, it might benefit from customers using “private cloud services.” In other cases, some providers might offer customers rental of computing cycles and storage (infrastructure as a service).

But most of the revenue in cloud computing will be sales of hosted applications. In that case, a service provider has to become a retailer of business apps. The issue is whether this will prove to be a substantial opportunity for service providers, or not.

The Tata study predicts that, by 2014, 25 percent of all corporate applications will be in the cloud in Europe; about 33 percent of U.S. companies and about 50 percent of enterprise apps in Asia-Pacific and Latin American regions.  


source: Tata


source: Tata

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source: Tata

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