While cloud computing is on the rise worldwide, there is a disparity in how aggressively enterprises are turning to the cloud for their information management needs. A recent study has found that large corporations in Latin America and the Asia Pacific region are the most aggressive in adopting cloud technologies, while their counterparts in the US and Europe lag behind.
A study by Tata Consultancy Services (TCS) has determined that big companies in the Latin America and Asia-Pacific regions are more aggressive in investing in cloud computing compared with other regions. The India-based company surveyed corporate IT executives and managers from 600 large businesses worldwide and came to a conclusion that North Americans and Europeans are a bit more conservative in cloud adoption.
Americans, Europeans More Conservative
On average, Latin American enterprises have 39% of their applications and data in the cloud. Meanwhile, APAC firms have 28% of their total apps as cloud-based services.
Meanwhile, 19% of a U.S. company's applications are on the cloud, on average. Europeans are even more conservative when it comes to cloud adoption, with only 12% of enterprise applications on a cloud implementation.
But even with the disparity, TCS highlights the fact that cloud computing is already turning into a major part of enterprise expenditure. N. Chandrasekaran, CEO and managing director of TCS, says:
We have reached the inflection point in cloud computing and there is no turning back. Cloud-based applications are already a substantial piece of large corporate IT infrastructure and the early benefits achieved are too substantial to ignore."
TCS believes that cloud computing will continue to open up opportunities for growth both in the developed and emerging economies. As such, companies will have to overcome the challenges often associated with cloud computing, including fear of security risks. The study has determined that U.S. and European businesses are more risk-averse when it comes to security, for fear of data breaches.
Only 20% of U.S. and European enterprises would consider running their critical applications on public clouds. Companies from these regions are likewise reluctant in storing customer information and other sensitive data in cloud-based apps.
Apart from regional disparities, the TCS study has determined that cost-cutting is usually not the biggest driver for cloud adoption. Businesses are more likely to go for cloud-based applications for their advantage in reaching out and engaging with customers. As such, customer-facing functions usually get the largest share of cloud-oriented expenditures by these large firms.