Today sees the launch of the Microsoft/Amárach Cloud Index – an innovative look at the state of Cloud Computing in Ireland and prospects for the future (and for the economy).
The Microsoft / Amarach Cloud Index is designed to measure progress toward adoption of Cloud Computing by tracking actual adoption in Ireland today. Following a survey of organisations across the public and private sector the inaugural index stands at 3.2 out of 10. This is based on the mean score for all responses to a question specifically on adoption of cloud computing today. Four in ten organisations score their status as ‘1’ which reflects no deployment therefore bringing the overall Index down. The Index rises to 4.0 for the largest organisations, though it is only 3.0 for public sector bodies. Microsoft plans to measure Ireland’s progress toward cloud adoption over time by tracking what will hopefully be continuous improvement in the Microsoft / Amarach Cloud Index score when revisited.
The State of the Cloud
Nearly two fifths (37%) of the organisations surveyed have already deployed Cloud Computing. This rises to over half (53%) of the largest category of organisations (employing more than 250 people). The same proportion (39%) of public and private sector organisations has deployed Cloud Computing. Nevertheless, the majority of businesses (and public sector organisations in our survey) have not yet deployed Cloud Computing.
Cloudonomics
Although only a minority of Irish businesses have implemented Cloud Computing, over three quarters (77%) agree that Cloud Computing is a tool that can play a part in getting the Irish economy back to growth. Similar proportions of small, medium and large-sized enterprises agree with this perspective, rising to 83% of public sector bodies.
The potential benefits of the Cloud don’t just stop at the ‘macroeconomic’ level. There is a clear perception that the Cloud matters in terms of microeconomics, i.e.: to individual firms. Over half (55%) of Irish organisations agree that Cloud Computing could play a role in helping to address the external and internal challenges that they foresee in the year ahead. Agreement rises from 42% of small firms to 72% of large firms, and again to 83% of public sector organisations.
Skills also play a part in the Cloud agenda in Ireland. Nearly one in seven (13%) of those surveyed consider the availability of the right IT skills to be a barrier to Cloud adoption for their organisation. This is consistent by size of firm, though is slightly less of an issue for public sector bodies.
Cloud Impact
For those who have moved to the cloud, the majority (56%) of Irish businesses using the Cloud have already experienced cost savings as a result of its implementation. Specifically 44% of public sector bodies using the Cloud Services have benefited already from cost savings. Other benefits stated by participants include:
· Nearly half (47%) have seen productivity gains from the Cloud (57% of large firms)
· Over a third (35%) have developed a service based in the Cloud (half of large firms)
· Three in ten (31%) have been able to expand without additional capital investment because of leveraging the Cloud (44% of small firms)
Another key benefit is that of jobs: just under 1 in 10 (7%) of Cloud adopters have created new jobs as a result of Cloud Computing, including 11% of small firms. Again, it is very early days, but already jobs are being created directly as a result of Cloud Computing, and against a background of significant cost savings and productivity gains.
Methodology
In April 2012, Amárach Research conducted a telephone survey of 151 organisations on behalf of Microsoft, comprising a range of small, medium and large-sized enterprises, as well as public sector organisations.
The focus of the survey was to ascertain adoption levels of Cloud Computing within organisations and to establish the business, operational and growth impact of Cloud Computing by those who have adopted. Levels of awareness of the potential of Cloud were also tracked as were issues relating to delays in adoption.
Interviews took place with senior decision makers in each organisation, including financial directors and managing directors, as well as IT directors.