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Confidence in cloud grows, paving way for new levels of business efficiency

Fujitsu research shows high success rates for early cloud adopters with up to 40% cost savings found and the majority achieving or exceeding their predicted savings

London, 16 November 2010: Research commissioned by Fujitsu has shown strong success rates for IT cloud projects. On average CIOs and IT managers have experienced 24% cost savings in their cloud computing projects with some achieving as much as 40%. 71% of those that achieved savings said it met or exceeded their expectations. Just 3% stated that they found no cost saving when moving to the cloud.

The research indicates that contrary to many industry warnings, early adopters of cloud have had a mostly positive experience – more than two-thirds said they would recommend cloud services to a peer.

The research 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.”