A new research commissioned by Fujitsu has shown high success rates for early cloud adopters, some of who chalked up to 40 percent cost savings and reported that they either achieved or exceeded their predicted savings.
The survey shows that cloud computing projects have resulted in 24 percent cost savings on average. Almost three quarters (71 percent) of the CIOs and IT managers who took part in the research said that the savings were either in line with their expectations or that they had exceeded them. Only 3 percent of the executives reported no cost savings after moving to the cloud.
Early cloud adopters mostly reportws a positive experience; more than two thirds said that they would recommend cloud services to their peers.
The research also shows that organisations have invested in Private Cloud ownership (73%), but to get the twin advantages of pay-as-you-go flexibility, without operational risks, organisations are using Shared Community Clouds (30%).
The key factor for inclusion in the research was that all respondents must have undertaken at least one cloud computing project. Subsequently, this research gives a unique “State of the Nation” insight into the success and performance of actual cloud implementations.
Darren Ratcliffe, offering manager Cloud Platforms, Fujitsu UK & Ireland comments: "There are few technology trends which have caused as much debate and polarisation as cloud has in the last two years. This research is invaluable in helping to separate cloud fact from cloud fiction. The findings show that cloud users are reaping the benefits and are achieving and exceeding their expectations."
Ratcliffe continues, "These results are encouraging for private and public sector alike. For business, the speedy implementation of cloud services and the walk-away benefits with no hefty set-up costs, means that it is easier to enter into new innovative technology with less business risk. This makes cloud a key enabler for growth in tough economic times. For Government too, the news from early adopters is good – with trusted cloud delivering real cost savings that would help make a chancellor smile."
Some of the key findings in the research include:
Applications put into the cloud
• Websites are the most likely workload to put into the cloud (61%) followed by test and development (57%) with email & PC applications (51%) being the third
• Finance and accounting is the least likely workload to be put into the cloud (just 35% would select this) this is followed by HR and payroll (41%)
Public Cloud concerns
• "Not knowing where data is located" was the most prominent (28%)
• "Users inappropriately buying & using their own cloud services" (13%)
• "Data accessed by an unauthorised third party" (13%)
Trends in the public sector
• Cost was cited as the most important factor for moving to cloud in the public sector (55%)
• There is low confidence within the public sector for Public Cloud, with just 18% adoption
Trends in the private sector
• "Speed to set up" was the most important factor for moving to cloud (62%) in the private sector, cost saving was the second most important factor
• CRM is one of the most popular cloud applications in the private sector, 55% currently use it and 93% said they would consider putting it into the cloud in the future
Ratcliffe concludes, "CIOs and IT managers concerns over Public Cloud security and resilience are well known, similarly the research shows that the need to know the location of their business data is a factor. We can also see though that CIOs and IT managers are open to using cloud services in a variety of business applications. Private Clouds are best for sensitive data whilst Shared Community Clouds offer IT flexibility, low costs and fast deployment of new business projects with no investment risk."
The research was conducted among 100 chief information officers and IT managers from small and medium businesses as well as those employed in enterprise organisations, and covered executives from both the public and private sector.