Private/Public Cloud and Cloud Adoption (Region Wise)

. Friday, April 13, 2012
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Willingness of Companies to Use Public vs. Private Clouds:

 This is Excerpt on the extensive study conducted by TCS. Despite a significant shift to cloud applications, most companies (especially in Europe) remain conservative about which applications they put in public clouds. Less than 20% of U.S. and European companies would consider or seriously consider putting their most critical applications in public clouds. But 66% of U.S. and 48% of European companies would consider putting core applications in private clouds.


10 uncovered findings that explain how large companies around the world are using cloud applications, to what benefit, with what concerns, and with what future plans:

Finding No. 1: Despite the hype, cloud applications do not rule the large corporation, although their usage is expected to increase significantly.
Finding No. 2: The biggest driver of cloud applications is not to cut IT costs.
Finding No. 3: The early returns on cloud applications are impressive.
Finding No. 4: Customer-facing business functions are garnering the largest share of the cloud application budget.
Finding No. 5: Many companies are reluctant to put applications with sensitive data in the cloud.
Finding No. 6: The heaviest users of cloud applications are the companies that manufacture the technology hardware that enables cloud computing (computers/electronics/telecom equipment), while healthcare services providers are the lightest users (in terms of average number cloud apps per business function).
Finding No. 7: The most aggressive adopters of cloud applications are companies in Asia-Pacific and Latin America.
Finding No. 8Despite a significant shift to cloud applications, most companies (especially in Europe) remain conservative about which applications they put in public clouds.
Finding No. 9The keys to adopting and benefiting from cloud applications are overcoming fear of security risks and skepticism about ROI.
Finding No. 10Companies evaluate cloud vendors most on their security and reliability/uptime capabilities – and far less on their price.

State of Adoption of Cloud Application:

Despite the hype, cloud applications do not rule the large corporation, although their usage is expected to increase significantly. Cloud applications are still in the minority of all applications in companies (19% of the average large U.S. company’s applications, 12% in Europe, 28% in Asia-Pacific, and a healthy 39% in Latin American companies).



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






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