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Oracle: 4 Reasons Why Information Silos Are Hindering Cloud Advantages

 While concerns over cloud deployments are now a thing of the past, the cloud is still proving difficult for many enterprises. In fact, new research form Oracle shows that the dual promise of business efficiency and IT agility is still eluding many enterprises.

Cloud App Integrations

The research is the result of a survey carried out by market research firm Dynamic Markets for Oracle across 1355 executives from companies all over the world with revenues of US$ 65 million or more, and shows that the problem of silos, it seems, is global.

Contained in a report entitled Cloud for Business Managers: the Good, the Bad, and the Ugly, it shows that many enterprises have not yet integrated their cloud applications and business functions. While there are many problems with this, the overall effect is operational inefficiencies and a challenging environment for IT and business environments. In figures, the report shows that:

  • 71% of companies have adopted cloud applications and line-of-business managers in all departments use them.
  • 76% said their principal motivation was quick and easy access to software
  • 54% say their department has experienced staff downtime due to cloud integration problems
  • 54% say project deadlines have been missed.
  • 83% have been prevented from getting the best out of their departmental cloud applications — 1 in 4 blames poor integration.
  • 50% of companies have abandoned the use of at least 1 departmental cloud app in the last 3 years due to integration problems.

Combined, this does not bode well for the future, Oracle says, and shows that, despite the huge advances made in cloud technologies, there are still major issues that have to be overcome. In fact, according to the research, there are four areas that are particularly problematic. They are:

1. Staff downtime

Despite the promise of the cloud and cloud-based applications to provide easy access to business applications, 54% of those that responded said that they had experienced staff downtime in the past six months alone.

This does not mean that employees have stopped working. It means that they have been forced to stop because cloud applications have not been properly integrated with other business apps across the enterprise. Of those companies able to produce a figure for the number of times they had problems of this kind over the past 6 months, there was, on average, 11 incidents. It also seems that this problem is impacting on departments that are not evening using cloud apps.

2. Missed project deadlines

The knock-on effect of this is that 54% of companies that use cloud apps say that project deadlines have been missed and that the specific cause of this has been an inability of knowledge workers to share their data. On average over the past 6 months, this has happened 9 times.

However, on a more positive note, there are more CEOs and managing directors (MDs) that say they are aware of it than there are CEOs and MDs that say they are not. Missing project deadlines has been particularly problematic in Singapore, India and Brazil.

3. Cloud falls short

Another issue that appears to be a big problem is that most companies are not able to innovate quickly, something which you may recall in the beginning was cited as one of the really big advantages of cloud computing.

Oracle cloud problems.jpg

According to the research, 75% of companies that use cloud applications say their ability to innovate has been stifled by problems with app integration. Overall, 36% say they have a problem integrating with other enterprise apps, while 26% say they have problems integrating with other cloud apps, with an overall 53% citing integration as a problem (clearly, some enterprises fall into both of the above categories).

On top of this, 83% say they have been prevented from getting the best out of the apps their department use because of integration issues, while inflexibility and the inability to customize apps for specific use-cases was cited as a problem by 33% of users.

A final problem in this respect, and cited by 20% of cloud app users is that the apps they are using cannot be used on mobile devices. Even worse, of those that are not happy with the mobile possibilities of their cloud apps, 30% of sales people — a group that tends to spend more time outside the enterprise than any other group — said they were disappointed with the mobile possibilities.

 

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