-- Less than half of Canadian companies (49 percent) think the global recession has "hit bottom" (59 percent globally). -- The majority of Canadian respondents reported that they are under pressure to save money and innovate. -- However, nearly two-thirds of Canadian companies reported rates of new technology adoption has remained the same or decreased even though cost savings are important in Canada. -- And, 61 percent of respondents say they view cloud-based IT systems as a strategic investment. -- Security issues and a lack of an immediate need are the leading reasons for not using cloud computing (50 percent each). Costs ranked third as a barrier to adoption. -- Of those companies using cloud computing, 55 percent of respondents say they have experienced a steep learning curve for IT staff (40 percent globally).Globally, while companies are making strategic investments and recognize cloud computing is one of these areas (57 percent say cloud is a strategic investment; 43 percent see it as a cost-saving measure), there are still barriers to the use of only cloud computing in large organizations. "Companies recognize the value of online services like cloud computing to offer increased operational elasticity, IT cost reductions, and increased connection with various stakeholders. However, there is still an adoption curve taking place, especially in Canada," said Jeff Kempiners, account group executive, Avanade Canada. Additionally, more than 35 percent have experience an outage at the service provider company. On a broader level, 30 percent of respondents using Software as a Service (SaaS) have experienced an outage of 10 or more hours -- losing more than a full day of business. Other key global findings in the September 2009 survey show:
-- Companies reporting no plans to adopt cloud computing has declined from 54 percent to 37 percent. -- More than 70 percent of global companies reporting that the economy has either helped (13 percent) or had no effect (58 percent) on efforts to implement cloud computing. -- More than half of respondents are turning to a mix of cloud-based and internal IT (on-premises) systems. There is a clear move using these hybrid deployments of cloud-based systems as companies get more comfortable with new technology."It is clear that cloud computing is not an all-or-nothing proposition. There is an evolution that is taking place. Companies are moving to take advantage of the cost savings and scalability that cloud computing brings to the enterprise," said Hartman. Online Services Gaining Momentum Another important finding of the survey is that online services, such as Software-as-a-Service, are quickly gaining acceptance. This online services model is beginning to fundamentally change how IT services are consumed and provisioned in large organizations. More than half of respondents report that they are currently using SaaS applications. While SaaS is making major inroads, nearly one third (30 percent) reported more than a day of business had been lost due to a service outage. Despite that issue, SaaS is seen as a resounding success globally -- 93 percent of companies view their experience as successful. Other key SaaS findings show:
-- The majority of respondents say they have been using SaaS for a year or less (60 percent). -- Globally, there is a 2:1 ratio of respondents who prefer SaaS delivered internally (or as private services) versus from third party service providers. -- And, although the technology may be new to most users, one-third report using three or more SaaS providers. -- Finally, more than 62 percent of respondents are looking to increase their use of SaaS over the next year."From our viewpoint -- based on the work we've done with customers and what the research reinforces -- the future of cloud-based solutions lies in this hybrid approach of using cloud and internally owned systems. In the same way that email and the Internet have permeated businesses with early resistance, SaaS and cloud will continue to take hold," Hartman said. About Avanade Avanade provides business technology services that connect insight, innovation and expertise in Microsoft technologies to help customers realize results. Avanade's services and solutions help improve performance, productivity and sales for organizations in all industries. The company applies Microsoft expertise from its global network of consultants, drawing on the right mix of onshore, offshore and nearshore skills, which together are designed to help deliver results faster, at lower cost and with less risk. Avanade, which is majority owned by Accenture, was founded in 2000 by Accenture and Microsoft Corporation and serves customers in more than 20 countries worldwide with more than 8,600 professionals. Additional information can be found at www.avanade.com. About the Survey The Cloud Computing survey was conducted by Kelton Research, an independent research firm, between August 26, 2009, and September 11, 2009, on behalf of Avanade. The 502 respondents include C-level executives, business leaders and IT decision-makers from 16 countries in North America, Europe and Asia-Pacific. For more information on this study and Avanade's cloud computing expertise, please visit http://www.avanade.com/people/thought_detail.aspx?id=79. Avanade and the Avanade logo are registered trademarks or trademarks of Avanade Inc. Other product, service, or company names mentioned herein are the trademarks or registered trademarks of their respective owners.
Contact Information: MEDIA CONTACTS: Avanade: Charlie Zaragoza (206) 239-5893 Edelman: James Boike (206) 268-2213