2012 Proformative Cloud Computing Survey Survey Sponsored By:
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1 2012 Proformative Cloud Computing Survey Survey Sponsored By:
2 -Page 1- SURVEY OVERVIEW.. Contents RESPONDENT DEMOGRAPHICS:..2 KEY RESULTS: 3 TOP CONCERNS IN MOVING TO THE CLOUD/SAAS APPLICATIONS....3 BENEFITS IN MOVING TO THE CLOUD /SAAS APPLICATIONS 3 Benefits Realized by Companies Operating Applications in the Cloud. 3 Cloud/SaaS Applications Currently Utilized By Respondents 3 OTHER NOTABLE RESULTS... 4 CONCLUSIONS... 4
3 -Page 2- Survey Overview Proformative delivered its initial Cloud Computing/SaaS survey in the fall of 2010 to evaluate the magnitude and direction of the adoption of this disruptive technology among our constituency. We also wanted to assess the confusion present at the time surrounding Cloud Computing and SaaS, discover where these technologies were being used, and how and why companies were (and were not) adopting them. The main inferences drawn from the survey last year were that this technology has delivered higher ROI, increased collaboration, and greater confidence in systems and their business value to many adopters. It was also clear that Cloud Computing and SaaS would be critical to companies over the next few years, CFOs felt like they were behind the curve and need to be educated, Cloud Computing and SaaS could reduce IT CapEx and OPEX and create a direct link between IT consumption and cost. In 2011, the value proposition around the adoption on Cloud Computing/Saas changed on several fronts. In terms of the potential benefits, whereas cost savings was normally the primary focus, there was a shift towards the value that could be offered in improving the IQ of company data across the enterprise. This would lead to better strategic decisions to drive top line growth in addition to operational efficiencies. In terms of the potential risks, the maturation of this technology has pivoted the questions being asked by potential adopters away from a focus on data security and towards whether the economics of the technology can scale to make sense for Fortune 500 companies and larger enterprises. This survey was designed to quantify the current state of affairs regarding the current and emerging trends in Cloud Computing/SaaS adoption. The survey was sent out to a segment of the Proformative community of several thousand finance, accounting, and treasury professionals and was in the field for a period of approximately three weeks. We received 366 responses. Respondent Demographics Job Title Company Size- Annual Revenue 21% 25% 13% 41% Executive (VP/CXX) Director Manager Analyst/Specialist $1B+ $100M - $1B $10M - $100M $1M - $10M <$1M 0% 10% 20% 30% Industry Top Functional Areas Retail IT Services Computer Software Nonprofit Financial Services Accounting and Audit Consulting Services Manufacturing Risk Mgt. 3% IT Treasury 20% 5% Acct'g 32% Finance 40% 0% 2% 4% 6% 8% 10% 12%
4 -Page 3- Key Results Top concerns in moving to the Cloud/SaaS applications and relevant significance May put company or customer data at greater risk 23% 46% 31% May increase my company's IT risk 19% 43% 37% May increase my cost of doing business 12% 38% 50% May increase my company's downtime 8% 33% 59% Benefits in moving to the Cloud/SaaS applications and relevant significance Provide scalability without infrastructure build-up 40% 43% 16% Increase my company's ability to respond quickly 31% 46% 23% Reduce my company's CAPEX for IT infrastructure 27% 46% 27% Reduce my company's IT operating expenses 27% 49% 24% Reduce my company's downtime 24% 47% 29% Reduce my company's IT risk 23% 51% 26% Greatest benefits and relevant significance realized by companies already operating applications in the Cloud Anytime, anywhere access 51% 34% 13% Easier and faster deployment than on premise solution 42% 40% 18% Easier and more frequent upgrades and enhancements 37% 42% 18% Increased collaboration 30% 39% 25% CAPEX reduction 23% 46% 23% Greater confidence in your systems and business impact 22% 47% 24% High ROI 18% 47% 26% OPEX reduction 14% 49% 28% Cloud/SaaS applications currently utilized Client Relationship Management (CRM) 22% Content, Communications, and Collaboration (CCC) 16% Financials/Enterprise Resource Planning (ERP) 15% Other 14% Financial Planning and Budgeting 9% Business Intelligence (BI)/Corporate Performance Management (CPM) 7% Expense Management 5% Operations to be moved into the Cloud over the next 12 months Human Resource Management 11% Client Relationship Management (CRM) 10% Content, Communications, and Collaboration (CCC) 8% Financial Planning and Budgeting 6% Enterprise Resource Planning (ERP) 5% Expense Management 4% Business Intelligence (BI)/Corporate Performance Management (CPM) 4%
5 -Page 4- Other Notable Survey Results 55% of respondents agree that the value proposition of Cloud Computing/SaaS for their companies includes improving strategic decisions that impact profitability 72% of respondents agree that Cloud Computing and SaaS will be very important to their companies over the next 12 months 67% of respondents reported that their companies have or are in the process of moving into the arena of Cloud/SaaS applications. Notable Comparisons to the previous year s Proformative Cloud/SaaS survey results Those who identified putting company or customer data at risk as a high priority concern in moving to the Cloud/SaaS applications at their companies fell by 9% year over year Those who identified increased collaboration as a great benefit realized from leveraging Cloud/SaaS and categorized it as a high in terms of relevant importance rose by 9% year over year In terms of respondent demographics, the top three industries represented changed to Manufacturing, Consulting Services, and Accounting and Auditing Services from Consulting Services, Financial Services, and Manufacturing, respectively, from the previous study Survey respondents indicating that their knowledge of Cloud Computing/SaaS could be best described as none actually increased 2% year over year The number of survey respondents who indicated Cloud Computing/SaaS would be very important for their company over the coming year increased by 16% year over year Those who identified CAPEX reduction as a great benefit realized from leveraging Cloud/SaaS categorized as a high in terms of relevant importance declined 8% year over year Conclusions The four main inferences to be drawn from this survey are: Cloud Computing and SaaS are now being viewed by companies as enabling improved strategic decisions that drive profitability, and not just offering value in terms of cost savings. Cloud Computing and SaaS adoption and optimization are strategically important to companies in The adoption of Cloud Computing/Saas and related technologies will accelerate in 2012 and encompass increased adoption by SMB companies. Human Resource Management and Client Relationship Management (CRM) are operational areas which increasing numbers of companies will move into the Cloud in In general, small and mid-sized companies are continuing the accelerated adoption of this technology in the arenas of client relationship management (CRM) and human resources management. In particular, SMB companies are realizing that the economics of accessing upgraded technology now make sense in the world of Cloud Computing/SaaS. As companies recognize the value that this technology can offer in improving strategic decisions within the realm of finance and accounting operations the adoption of financial planning and analysis, enterprise resource planning (ERP), and business intelligence (BI) applications will also see meaningful growth in Furthermore, Cloud Computing and SaaS are beginning to develop a meaningful presence at even the biggest companies as many are following the lead of early movers in their space who have adopted these technologies successfully on a divisional or Business Unit level and then scaled them up. Cloud Computing and SaaS-based applications continue to transform the way companies consume IT services and business applications. This technology is here and CFOs and IT leaders are being challenged to explain their positions in this arena of technology. The question of if companies will enter the Cloud is continuing its evolution into the questions of how and when. Our users are increasingly preparing their answers.
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