In partnership with the TechSoup Global Network 2012 Global Cloud Computing Survey Results
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1 In partnership with the TechSoup Global Network 2012 Global Cloud Computing Survey Results The Significance of Cloud Computing in the Social Benefit Sector: A Survey of 10,500 Nonprofits, Charities, and NGOs from 88 Countries on Barriers and Motivators in Cloud Computing September 2012
2 Executive Summary In February and March, 2012, the TechSoup Global Network conducted a survey of non-governmental organizations (NGOs) 1 around the world to better understand current cloud computing usage and future plans for cloud computing adoption. Cloud computing is a significant change to the information technology (IT) 2 paradigm one that has already arrived, or is coming soon, in all parts of the world. This technology advance, combined with increased computing mobility and configurability of software and services, represents an opportunity for increased effectiveness inside organizations, sharing applications and services between organizations, and a deeper level of information sharing and access to data across the sector as a whole. However, taking advantage of these opportunities requires an accurate understanding of their benefits, costs, and barriers to use. The information in this report highlights these benefits, costs, and barriers to empower NGOs to make sound decisions about cloud computing adoption and usage. This information will also help capacity-building organizations, funders, corporate donors, and partners develop programs that appropriately maximize the potential of these technologies. Cloud Computing Survey Key Findings 90% of respondents worldwide are using cloud computing. 60% say lack of knowledge is the greatest barrier. 79% say the greatest advantage is easier software/ hardware administration. 47% say cost-related changes and ease of setup would be the greatest motivators for moving their IT to the cloud. 53% report plans to move a "significant portion" of their IT to the cloud within three years. 1 Various terms are used to refer to our target audience, including NGO, community benefit organization (CBO), civil society organization (CSO), charity, nonprofit, and social benefit organization (SBO). We have chosen to use "NGO" as an umbrella term for the sector in this report. 2 "IT" refers to the development, maintenance, and use of computer systems, software, hardware, and networks. Information and Communications Technology (ICT) is another commonly used term. 1
3 Our survey joins other surveys, such as the Nonprofit Technology Network s (NTEN s) U.S. nonprofitfocused 2012 State of the Nonprofit Cloud Report 3, in providing baseline information for NGOs that are making decisions about cloud computing adoption. Using the data we gathered in our survey, TechSoup Global will work in concert with our network of partner organizations, corporate donors, and foundations to improve content and programming in all the areas in which we operate. About the Survey TechSoup Global operates programs in Africa, the Americas, Asia Pacific, Europe, and the Middle East through a network of independent capacity-building NGOs. We promoted this survey through the 36 partner organizations < of the TechSoup Global Network using a variety of methods, including outreach to the network's more than 200,000 registered member organizations. The broad reach of the TechSoup Global Network allowed us to translate the survey into 21 languages 4 and generated more than 10,500 responses from NGOs in 88 countries. This includes robust base sizes (more than 100 responses) from 26 countries around the world. Details on responses by country are available in the appendix of the full report. This large sample size enables us to examine differences by geography, organization size, and other factors in a meaningful way. We are reporting our results at a 95% confidence level with a margin of error of +/- 1% for all global results. The margin of error for regional results ranges from a low of +/- 1.6% for U.S./Canada to a maximum of +/- 5% for Latin America, Africa, and Australia/New Zealand. 92% of survey respondents described themselves as partly or solely responsible for IT decision-making in their organization. We believe this means that the vast majority of survey respondents are knowledgeable representatives of their organizations perspectives on cloud computing. 3 The Nonprofit Technology Network (NTEN) is a U.S.-based nonprofit capacity-building and education organization. Its 2012 State of the Nonprofit Cloud Report, which includes survey results from U.S. nonprofits, is available for download at: < 4 The 21 languages used in the survey were: Arabic, Bulgarian, Chinese, Croatian, Czech, Dutch, English, French, German, Hebrew, Hungarian, Italian, Japanese, Polish, Portuguese, Romanian, Russian, Slovak, Slovenian, Spanish, and Swedish. 2
4 Survey Respondents by Country 100+ Resposes Responses Less than 10 Responses 88 Countries 10,593 Responses Executive Summary Figure 1: Number of respondents by country captured by IP address. (N=10,593) Respondents represented a wide range of organizational mission types, from social benefit activities to poverty relief to faith-based activities. The most represented NGO mission types were education organizations (13%), social benefit activities (10%), disability (8%), and health services and related activities (8%). Our survey was performed online using FluidSurveys, a product donated by Chide.it, a TechSoup Global donor partner. We contracted with survey experts George Perlov Consulting and S. Radoff Associates to help us design, conduct, and analyze the results of this survey to ensure the validity of the findings. 3
5 Despite High Cloud Computing Usage Overall, Penetration Is Relatively Low for Most Categories of Cloud-Based Apps Our survey found that the vast majority of NGO respondents are already using cloud-based services. In fact, 90% of respondents worldwide indicated using at least one cloud-based application. We defined "cloud usage" as using one or more cloud-based applications to perform a particular function, using specific cloud vendors, or using specific branded cloud-based applications. For example, a respondent would be considered a "cloud user" if they reported using a cloud-based application to manage projects, such as Basecamp. We did not include typical browsing and Internet searching as a category of usage and therefore do not include that in our analysis. Regional Perspective: Responses to this survey indicate relatively high adoption of cloud-based applications across all geographic regions, with a high of 93% for the U.S./Canada and Australia/New Zealand and a low of 83% for India. Cloud Penetration: We calculated "cloud penetration" to determine the percentage of organizations that are using a cloud-based application to perform a particular function compared to those that are using any kind of application cloud-based or not to perform that function. We found that cloud penetration ranges from a low of 10% for billing and invoicing to a high of 100% for several categories of apps that are essentially defined by the cloud, such as collaboration software and web conferencing. The median penetration level of the cloud-based apps we measured in the survey was relatively low, only 24%. Defining the Cloud The definition of cloud computing we used in the survey was: Cloud computing allows you to access software via the Internet instead of from your hard drive or your local computer network. When you use cloud-based software, it is available anywhere you can use the Internet not just in your office. 4
6 NGOs Report Using Complex Tools in the Cloud While cloud app usage overall is high, those statistics do not address how heavily NGOs are involved with cloud computing. To better understand this, we looked at which cloud-based apps NGOs reported they are already using: Organizations reported using an average of three to four types of cloud-based apps. However, 35% of organizations reported using only one to two types of cloud-based apps. The cloud-based services cited most frequently by respondents were (55%), social networking/web 2.0 (47%), file storage/sharing (26%), web conferencing (24%), and office productivity (23%). The specific cloud-based apps most often used were Facebook (70%), Gmail (63%), and Skype (50%). Interestingly, when we asked respondents if they were using a specific cloud-based app (such as Skype), responses were different than when we asked if they used a cloud-based app to perform a particular function (such as web conferencing). For example, while 24% of respondents said they were using cloud-based web conferencing, 55% of respondents said they were using WebEx, Citrix GoToMeeting, ReadyTalk, or Skype. This discrepancy seems to be a further indication of lack of knowledge about cloud computing. 9% of cloud-using respondents were only using a basic or "lightweight" cloud-based application, such as social networking, SMS/text messaging, or office productivity. The remaining 91% of respondents who used cloud-based apps were using at least one cloudbased tool that was more complex. Current Cloud-Based Application Usage and Future Adoption Plans The number of cloud-based applications currently in use by an organization is important because it seems to relate to NGOs' reported perspective on cloud computing. Specifically, our data indicates that the more cloud-based apps respondents say are being used at their organization, the more advantages they report to using cloud computing and the faster their reported timeframe is for adopting cloud-based apps in the future. NTEN reported similar findings in its report on U.S. nonprofits, saying that "once a nonprofit starts using one cloud software solution, it's likely to use more." 5
7 Reported Major Barriers to Cloud Computing Adoption Our survey found that lack of knowledge is the biggest barrier to cloud computing adoption, cited by 60% of the global respondents as a major barrier and by an additional 26% of respondents as a minor barrier. Lack of knowledge was consistently reported as a barrier across geographies and organization sizes. Cost-based issues are the second largest set of barriers, noted by 49% of respondents as a major barrier. Reported Major Barriers Lack of Knowledge Inadequate training No management support for cloud No funder support Cost Monthly costs Setup costs Migration costs Internet costs Data security Data security concerns Data loss concerns Lack of trust Cloud not ready to depend on Integration issues General lack of trust Noncontrollable externalities Gov t. regulations Unstable electric grid Lack of dependable Internet connectivity Foreign currency issues No need Executive Summary Figure 2: What are the barriers that prevent your organization from using cloud computing or using cloud computing more (select as many as are applicable)? (Question 12, N=9,051) 30% of respondents said they "don't know enough about cloud computing to know what the barriers are." This is consistent with NTEN's report findings that many U.S. nonprofits don't know exactly what hosted software is let alone have the ability to accurately gauge the pros and cons of using it." 6
8 Regional Perspective: Respondents in countries 5 with lower gross domestic product (GDP) per capita cited barriers at higher levels than respondents in higher-percapita GDP countries. In particular, respondents in lowerper-capita GDP countries appear to face some significant obstacles in terms of "noncontrollable externalities," including: Foreign currency issues Unstable electric grids Lack of dependable Internet connectivity Government regulations about storing data offshore NGO Voices "As the projects grew, we realized that if we wanted to keep them in the cloud, it would get terribly expensive. It was getting so expensive that it was better for us to purchase our own hardware." IT Project Manager, Slovakian NGO "When you re talking about broadband in South Africa, you re not talking about broadband in somewhere like San Francisco. You re talking about something that s probably about a quarter of the speed." Technology Development Manager, South African NGO NGOs Cite Administration/Ease of Use, Cost, and Partnership Opportunities as the Primary Advantages of Cloud Computing When respondents were asked what advantages they saw to cloud computing, administration-related benefits such as easier access to software and reduced system administration topped the list and were cited by 79% of respondents as a major advantage. 5 Per-capita GDP statistics came from 2011 International Monetary Fund (IMF) data. 7
9 Reported Major Advantages to Cloud Computing Administration Easier software access Easier disaster recovery Reduced system admin. Rapid deployment Cost Low capital investment Fewer IT staff needed Transforms capital expenses to operating expenses. Partnership Improved collaboration Easier to partner with other orgs. Rapid deployment Data Improved data security Better data organization Data under my control Executive Summary Figure 3: Whether your organization is using cloud computing or not, please indicate whether these items represent an advantage of using cloud computing (select as many as are applicable). (Question 10, N=9,051) 8
10 Regional Perspective: While they cite barriers at high levels, South Africa, Egypt, and Mexico also cite cloud computing advantages at higher levels than other regions and the global average. Reported Major Advantages to Cloud Computing by Country Worldwide Average South Africa Egypt Mexico Cost-based advantages 62% 77% 73% 75% Data-based advantages 54% 69% 78% 86% Administrative advantages 79% 85% 91% 91% Partnership advantages 61% 71% 80% 80% Executive Summary Figure 4: Whether your organization is using cloud computing or not, please indicate whether these items represent an advantage of using cloud computing (select as many as are applicable). (Question 10, N=9,051) Are NGOs Planning to Move to the Cloud? When asked if they planned to move a "significant portion of their IT" to the cloud 6 : More than half (53%) of respondents worldwide indicated they would be moving to the cloud within two to three years or faster. However, a sizeable minority of respondents (36%) also said they had no plans whatsoever to move their IT to the cloud. 6 In the survey, we provided the following examples of what we considered a "significant portion of their IT:" database, , or data storage. However, the definition of the word "significant" was ultimately left up to the interpretation of respondents. 9
11 Timeframe for Moving a Significant Portion of IT to the Cloud 36% Have no plans to move to the cloud 19% Within 1 year 11% More than 3 years 15% Within 2-3 years 19% Within 1-2 years Executive Summary Figure 5: What is your organization s likely timeframe for moving a significant portion of its IT to the cloud? (Question 15, N=8,183) Differences by Organization Size: Medium-sized organizations 7 reported the most aggressive timeframe for moving IT to the cloud, with 22% reporting they plan to move a significant portion of their IT to the cloud within one year. 7 Medium-sized organizations were defined as organizations with 10 to 44 full-time staff and volunteers. 10
12 Reported Timeframe for Moving a "Significant Portion" of IT to the Cloud by Country and Per-Capita GDP Australia Higher Per-Capita GDP Sweden Less likely within 3 years Netherlands Belgium Japan Spain Canada United States Germany United Kingdom Ireland France New Zealand Hong Kong Italy More likely within 3 years Czech Republic Slovakia Hungary Poland South Africa Mexico Lower Per-Capita GDP Bulgaria Taiwan Egypt India Romania Executive Summary Figure 6: What is your organization s likely timeframe for moving a significant portion of its IT (such as your database, , or data storage) to the cloud? (Question 15, N=8,183) Regional Perspective: The most accelerated timetables were noted in Egypt, South Africa, Mexico/Latin America, and India, where half of respondents indicated they would move a significant part of their IT to the cloud within the next two years. The survey results also indicate that the lower a country s per-capita GDP, the more likely respondents are to indicate interest in adopting cloud-based applications in the near future. Polarized Views on Costs and Security in the Cloud Interestingly, survey respondents identified costs and data security as both advantages and disadvantages to cloud computing, indicating some polarization or ambivalence about cloud computing. 11
13 Reported Motivators for Cloud Computing Adoption When respondents were asked what most would motivate them to move their IT (or more of their IT) to the cloud, their responses were consistent with overcoming barriers. Motivators for Moving IT to the Cloud Cost Reduce costs Adjust budget to afford monthly fees Ease of setup Easier customization Easier integration Easier services setup Training Train employees Remote consulting Trust Recommended by advisor or peer Not planning to use cloud services Executive Summary Figure 7: What would most motivate your organization to move your IT (or more of your IT) to cloud services (select up to three answers)? (Question 14, N=8,272) Motivators are the specific items that would actually motivate cloud adoption for respondents, in contrast to reported advantages (which may or may not directly motivate respondents to adopt additional cloud-based technologies). Other Motivators 22% of respondents said a reduction in cloud security risks would motivate additional cloud computing adoption. 12
14 About the Report In this document, we have made every effort to present the survey results without inferences, assumptions, or conclusions. Our goal was to allow the data to stand on its own so that readers may draw their own conclusions. Over the course of the next year, we will be producing and sharing content that reflects our understanding and point of view on the information presented in this report. All results reported in this document reflect the survey responses. Given the nature of the outreach, the questions asked, and the fact that the survey was taken online, the survey sample skews toward those working in organizations that have access to the Internet and are engaged with cloud computing. Consequently, cloud usage levels reported here may be higher than actual levels among all NGOs. Conclusion TechSoup Global's objectives in gathering and sharing this data were to: Gauge how NGOs worldwide are responding to cloud computing in terms of current usage Measure how NGOs perceive barriers to and advantages of cloud computing adoption Understand these organizations future plans for cloud computing adoption By conducting this survey on the state of global NGO information technology, we at TechSoup Global hope to shed light on how NGOs are thinking about, planning for, and adopting cloud solutions. We invite you to view the full 2012 Global Cloud Computing Survey Results for additional findings and analysis at: For contact information, please see 13
15 About the TechSoup Global Network Together, the members of the TechSoup Global Network are committed to building the technology capacity of the NGO sector worldwide. All of the network members believe that increasing the technology capacity and expertise of NGOs allows them to better serve their constituencies, bringing critical services to the communities that need it most. Founding member TechSoup Global partners with independent NGOs around the world, delivering the resources, technology, and expertise necessary to allow them to become access points to information and donations for their communities. Our partner NGOs customize these offerings, allowing their beneficiaries to receive the best local and global technology resources. This is a flexible solution that builds regional capacity and strengthens local relationships. But the most important achievement of the TechSoup Global Network has been the creation of a community of technology activists. The network now consists of 36 NGO partners in 40 countries. The TechSoup Global Network works with technology leaders and major foundations including Microsoft, Adobe, Cisco, SAP, Symantec, the Charles Stewart Mott Foundation, the Rockefeller Brothers Fund, and the Bill & Melinda Gates Foundation on localized programs that meet the technology needs of NGOs, both large and small. Together with these partners, the TechSoup Global Network has reached more than 183,000 organizations and enabled recipients in 40 countries to save more than US$3.1 billion in IT expenses. For more information on the TechSoup Global Network, visit The TechSoup Global Network Country Australia Belgium Botswana Brazil Bulgaria Canada Chile Croatia Czech Republic Egypt France Germany Partner Name Connecting Up SOCIALware asbl SANGONeT/NGO Pulse BOCONGO Associação Telecentro de Informação e Negócios (ATN) Workshop for Civic Initiatives Foundation Centre for Social Innovation Information Technology Association of Canada The Committee for the Democratization of Information Technology (CDI) The Association for an Independent Media Culture (H-Alter) Partners for Good Foundation Via Foundation Charta 77 Professional Development Foundation Emmaüs France Stiftungszentrum.de 14
16 Country Hong Kong Hungary India Ireland Israel Italy Japan Kenya Luxembourg Macau Malaysia Mexico Netherlands New Zealand Partner Name The Hong Kong Council of Social Services (HKCSS) Nonprofit Information and Training Centre Foundation (NIOK) NASSCOM Foundation Guidestar India ENCLUDE NPTech Banco Informatico Tecnologico e Biomedico (BITeB) Japan NPO Center SANGONeT/NGO Pulse Arid Lands Information Network (ALIN) SOCIALware asbl The Hong Kong Council of Social Services (HKCSS) TechSoup Asia Centro Mexicano para la Filantropía SOCIALware asbl Stichting GeefGratis Connecting Up Philippines TechSoup Asia Poland Fundacja TechSoup Romania TechSoup Romania Russia The Institute of the Information Society (IIS) Singapore TechSoup Asia Slovakia Pontis Foundation Slovenia MISSS (Youth Information and Counselling Center in Slovenia) South Africa SANGONeT/NGO Pulse Spain Technosite Sweden National Forum for Voluntary Social Work Taiwan Frontier Foundation Thailand TechSoup Asia United Kingdom Charity Technology Trust United States TechSoup Global 15
In partnership with the TechSoup Global Network 2012 Global Cloud Computing Survey Results
In partnership with the TechSoup Global Network 2012 Global Cloud Computing Survey Results The Significance of Cloud Computing in the Social Benefit Sector: A Survey of 10,500 Nonprofits, Charities, and
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