A study by Tata Consultancy Services (TCS) involving senior managers and corporate IT executives from over 600 large companies across the globe reveals that while cloud applications are still in the minority of all applications, companies in Latin America and Asia Pacific have a much higher proportion of cloud applications to total applications.
The average Latin American company has almost two fifths (39%) of its total applications in the cloud. Asia Pacific follows closely behind with over a quarter (28%). In contrast, less than one fifth (19%) of the average US company’s applications are hosted in the cloud. In Europe, the figure is closer to one tenth (12%).
N Chandrasekaran, CEO & MD, Tata Consultancy Services said, "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. There is huge scope for growth in both developed and emerging economies and we firmly believe that cloud computing will continue to open up opportunities for companies across many different functions."
The study also uncovers that cost cutting is not in fact the biggest driver of cloud applications. Indeed while IT cost reduction is an important factor for companies globally, the need to streamline and speed up processes was greater. In the US and Asia-Pacific, companies cited standardization of software applications and business processes as the main driver for shifting on-premise applications to the cloud. In Europe and Latin-America, the ability to ramp systems up or down faster was the motivation.
