Cloud Computing Adoption: A comparative study

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1 Cloud Computing Adoption: A comparative study George Feuerlicht, Nikos Margaris and Lukas Burkon Cloud Computing Research Group Prague University of Economics Outline l Cloud Computing Predictions l Survey Design l Survey Results l Conclusions Copyright CCRG Cloud Computing: Comparative Study 2 1

2 What are the Analysts Saying? l IDC estimates that spending on public cloud IT services in 2011 was $28 billion ($1.7 trillion of total expenditure on IT products and services) l IDG CIO Survey reports that 26% of IT budget is allocated to cloud, and 88% of executives rate cloud computing as priority l Northbridge survey (2012) 82% use SaaS and 50% of respondents are confident to use cloud services for mission critical applications Copyright CCRG Cloud Computing: Comparative Study 3 Cloud Computing Predictions l Worldwide revenue from public IT cloud services to reach $55.5 billion in 2014, representing a compound annual growth rate of 27% [IDC] l Global cloud computing market to grow from $37.8 billion in 2010 to $121.1 billion in 2015 at a compound annual growth rate of 26% with SaaS accounting for 73% of the market s revenues 2010 [MarketsandMarkets.com] Copyright CCRG Cloud Computing: Comparative Study 4 2

3 Some Issues with Surveys l Results of different surveys are difficult to compare and sometimes not easy to interpret l Cloud computing encompasses a wide spectrum of solutions and is difficult to define (data storage and hosting services vs multitenant SaaS applications) l Private and public clouds are associated with different benefits and have different adoption characteristics Copyright CCRG Cloud Computing: Comparative Study 5 Comparative study Czech Republic vs Australia (2011/12) l Both surveys use identical online questionnaires l Computerworld and CIO magazine in Australia l Computerworld, CSSI and CACIO in Czech Republic l About 100 responses each survey Copyright CCRG Cloud Computing: Comparative Study 6 3

4 Survey design l Profile of respondent organization, including the size of the organizations, industry sector, duration of operation, IT expenditure, etc. l Expenditure on cloud services, perceived benefits of cloud computing, concerns about adopting cloud services l Types of cloud services used, types of processes supported by these services, and level of satisfaction Copyright CCRG Cloud Computing: Comparative Study 7 Survey design l Focus entirely on public clouds l Direct questions about specific cloud models (i.e. SaaS, IaaS and PaaS), not cloud computing in general l Survey differentiates between pilot projects and production systems l Questions designed to establish if cloud services are used to support mission-critical business processes Copyright CCRG Cloud Computing: Comparative Study 8 4

5 Survey design l Adoption trends - questions about past use of cloud services (over the last 12 months), current, and intended future use (over the next 12 months). l Survey available on: public/ Copyright CCRG Cloud Computing: Comparative Study 9 Survey results l Sample size: 96 for the Australian and 105 Czech organizations l Mostly large organizations > 250 employees operating for more than 5 years l Some differences: 45% of Czech companies in IT sector (17% of Australian companies in IT sector) Copyright CCRG Cloud Computing: Comparative Study 10 5

6 Overall Adoption Rates l Australia l SaaS 53%, IaaS 30%, PaaS 27% l Czech Republic l SaaS 25%, IaaS 13%, PaaS 11% Copyright CCRG Cloud Computing: Comparative Study 11 SaaS in production and mission critical applications l Higher use of cloud services in production in Australia, in particular for SaaS applications (44%) as compared to Czech Republic (18%) l Higher use of SaaS services in mission critical applications in Australia (31%) of as compared to Czech Republic (23%) Copyright CCRG Cloud Computing: Comparative Study 12 6

7 Adoption Rates Copyright CCRG Cloud Computing: Comparative Study 13 Motivations for Adoption l Most cited benefits of cloud computing adoption include cost reduction, elasticity, flexibility, and rapid deployment l Australian companies put more emphasis on improved support for business processes in SaaS applications (26%) as compared to Czech companies (about 6%) and appear to be less concerned about cost reduction Copyright CCRG Cloud Computing: Comparative Study 14 7

8 Motivations for Adoption Copyright CCRG Cloud Computing: Comparative Study 15 Barriers to Adoption in Australia 1. Data security and privacy issues (34% for SaaS, 17% for PaaS, 27% for IaaS) 2. IT governance (27% for SaaS, 19% for PaaS, 23% for IaaS) 3. Service availability (21% for SaaS, 12% for PaaS, 22% for IaaS) Copyright CCRG Cloud Computing: Comparative Study 16 8

9 Barriers to Adoption in Czech Republic 1. Dependence on service provider (28% for SaaS, 28% for PaaS, 11% for IaaS) 2. Data security and privacy (23% for SaaS, 23% for PaaS, 13% for IaaS) 3. Service availability (16% for SaaS, PaaS and IaaS) Copyright CCRG Cloud Computing: Comparative Study 17 Reduction in Concerns Following Adoption l Concerns about data security, IT governance, service availability and dependence on service provider are held by lower number of respondents in both Australian and Czech surveys following adoption Copyright CCRG Cloud Computing: Comparative Study 18 9

10 Adoption Barriers (Before/ After) Australia Copyright CCRG Cloud Computing: Comparative Study 19 Adoption Barriers (Before/ After) Czech Republic Copyright CCRG Cloud Computing: Comparative Study 20 10

11 Types of SaaS services in use Copyright CCRG Cloud Computing: Comparative Study 21 Conclusions l Australian data shows much higher use of cloud services in production environments, in particular for SaaS applications (44%) as compared to less than 20% in Czech Republic l Larger number of Australian companies (31%) using SaaS in mission critical applications as compared to 23% in Czech Republic Copyright CCRG Cloud Computing: Comparative Study 22 11

12 Conclusions l Concerns about data security, IT governance, service availability and dependence on service provider are held by much lower number of respondents following adoption of cloud services l SaaS adoption is confined to a small number of relatively simple types of enterprise applications that include CRM, and other types of collaboration software Copyright CCRG Cloud Computing: Comparative Study 23 Conclusions l Important differences in cloud computing adoption patterns between Australia and Czech Republic exists at present l It is likely that the factors that cause lower level of acceptance of cloud computing in Czech Republic will diminish over time as the ICT infrastructure and overall readiness for cloud computing improves Copyright CCRG Cloud Computing: Comparative Study 24 12

13 Conclusions l Further investigation is needed to identify the impact of country-specific factors such as the availability of localized SaaS applications and local cloud providers on cloud computing adoption decisions Copyright CCRG Cloud Computing: Comparative Study 25 Readiness for Cloud l The BSA (Business Software Alliance) study Blueprint for Economic Opportunity examined laws and regulations relevant to cloud computing as well as ICT-related infrastructure and broadband deployment l Data privacy, Security, Cybercrime, Intellectual Property Rights, Promoting Free Trade, ICT readiness and Support for industry-led standards Copyright CCRG Cloud Computing: Comparative Study 26 13

14 Conclusions l Adoption of cloud services in CR is growing steadily l Need to improve awareness of available cloud computing services l Need for adoption guidelines for organizations of different size and industry sector l Collaboration opportunities between universities and industry practitioners Copyright CCRG Cloud Computing: Comparative Study 27 Conclusions l SaaS, IaaS and PaaS have different adoption rates and business benefits l Adoption rates vary according to l company type l company size l industry sector l territory Copyright CCRG Cloud Computing: Comparative Study 28 14

15 Cloud Computing Research Group l Objectives l Improve understanding of cloud computing issues l Development of adoption guidelines l Study of Enterprise Architectures for cloud computing l Research Projects l Cloud computing adoption and governance: Models and Guidelines - IG (2010) l Enterprise Architecture for Cloud Computing Environments, GACR P403/11/0574 ( ) Copyright CCRG Cloud Computing: Comparative Study 29 Copyright CCRG Cloud Computing: Comparative Study 30 15

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