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Follow on Google News | Multinationals In Apac Expressing Greatest Interest In Cloud Services As Deployment Soars GloballyAsia-pacific reporting 63 per cent uptake of cloud services
By: Rajiv Menon • MNC’S UPTAKE OF CLOUD SERVICES GLOBALLY INCREASES BY OVER 60 PER CENT IN THE LAST YEAR • TRUST IN TELECOMMUNICATIONS PROVIDERS AS CREDIBLE SUPPLIERS FOR CLOUD SERVICES HAS INCREASED BY 30 PER CENT SINCE APRIL 2010 • 75 PER CENT OF MNCS SEE SCALABILITY OF CAPACITY AS A KEY STRATEGIC BENEFIT, WITH RETAILERS AND SERVICES COMPANIES PLACING MOST EMPHASIS ON ITS IMPORTANCE May 19, 2011: A survey of more than 100 global multinational corporations (MNCs) across Asia-Pacific, North America and Europe by Ovum for Cable&Wireless Worldwide reveals that adoption of cloud services is picking up pace among large organisations, with Asia Pacific expressing the greatest interest. Ovum’s findings show 63 per cent of MNCs in Asia-Pacific reporting the uptake of at least one of the cloud services categories; networking, communications, applications, corporate IT systems, as well as data management, security and backup. The research also points to telecoms providers being well positioned to take advantage of cloud services adoption, which is up by 61 percent worldwide from April 2010, with 45 per cent of MNCs already using cloud sourcing for at least some elements of key IT services. Across the globe, enterprises have already moved significant resources to the cloud and are ready to move more application services. The dominant areas of cloud services uptake are in data backup and storage, at 51 per cent of respondents, with an additional 33 per cent reporting their intention to procure cloud data backup and storage services in the next 24 months. Cloud uptake is permeating all sectors. Finance and insurance multinationals have adopted cloud services for some elements of corporate IT systems (56 per cent), whereas manufacturing is embracing cloud components for networking and data management (63 per cent and 59 per cent, respectively) Evan Kirchheimer, Practice Leader, Enterprise Services, at Ovum comments: “It’s interesting to see Asia-Pacific MNCs reporting such interest in cloud services. This may be because many companies in the region are relatively new and take up the latest technology more readily. We believe, however, that the majority of MNCs are currently between ‘early’ and 'adolescent' adoption phases of cloud-based services, with broader and deeper adoption being contemplated. Greater adoption is dependent on the resolution of security, governance and reliability and once these concerns are addressed through standardised, tested offers from service providers, more large enterprises will feel comfortable positioning cloud as a preferred procurement option.” Seventy-five per cent of MNCs rate scalability of capacity and matching capacity to fluctuating demand as the main benefits from the use of cloud services, with increased speed of provisioning coming in a close third (72 per cent). Cost transparency is regarded as least important with only (24 per cent) citing this as a major benefit. Retail respondents topped the poll in viewing scalability and matching capacity to demand as major benefits (50 per cent), while finance and insurance came out top in seeing improved employee productivity as a major attraction (50 per cent). Manufacturing views cost transparency as far more important than other verticals (38 per cent vs average of 24 per cent). Commenting, Charles Kennaway, Vice President of Enterprise Sales, Asia Pacific at C&W Worldwide said: “This research confirms our confidence in the market potential of cloud computing. We are encouraged to see that most enterprises in Asia Pacific have shown such great interest in adopting cloud services. One of the key elements of the research indicates that telecommunication providers are emerging as trusted partners and credible suppliers for cloud services, increasing from 37 per cent in 2010 to 49 per cent in 2011, which is a good indicator for us.” Evan Kirchheimer, Practice Leader, Enterprise Services, at Ovum comments: “Telecommunications providers’ control of the network over which cloud services are delivered is becoming a compelling advantage, as it allows them to offer end-to-end service level agreements (SLAs). This allays many of the security concerns enterprises have expressed over use of the public internet to access cloud services and general security, data governance and loss of control.” -ends- Ovum analysts interviewed CIOs, telecoms managers and/or IT directors with global responsibility for communications services (fixed, mobile, voice, data, IT) at 102 multinational corporations during April and May 2011. Contacts: CABLE&WIRELESS WORLDWIDE Jasleen Makker Rajiv Menon Perfect Relations Senior Manager rmenon@perfectrelations.com NOTES TO EDITORS About Ovum Ovum provides clients with independent and objective analysis that enables them to make better business and technology decisions. Our research draws upon over 400,000 interviews a year with business and technology, telecoms and sourcing decision-makers, giving Ovum and our clients unparalleled insight not only into business requirements but also the technology that organisations must support. About Cable&Wireless Worldwide Cable&Wireless Worldwide (LSE: CW.) is a leading global telecoms company providing a wide range of high-quality managed voice, data, hosting and IP-based services and applications to large multinational companies, governments, carrier customers and resellers across the UK, Asia Pacific, India, Middle East & Africa, Continental Europe and North America. Established in the 1860s, Cable&Wireless Worldwide helps more than 6,000 organisations deliver their goals. The Group’s vision is to be the first choice for mission critical communications. Reaching 20,500km in length, Cable&Wireless Worldwide owns the UK’s largest fibre network dedicated to business users of telecoms, and provides ubiquitous nationwide access through a combination of fibre, digital, microwave, radio and leased circuits. The network has presence in over 400 towns and cities in the UK, with 864 unbundled exchanges covering 56% of the population. Internationally, Cable&Wireless Worldwide’s global next-generation network (NGN) stretches to more than 425,000km, including interests in 60 global cable systems, enabling connectivity to more than 150 countries. The Group’s IP-based Multi-Service Platform operates at the core of our NGN, offering a single environment on which voice and data applications can be converged to drive business efficiencies. Cable&Wireless Worldwide’s network is uniquely designed with inbuilt resilience. With more than 6,000 colleagues globally, Cable&Wireless Worldwide is committed to delivering exceptional customer service and developing long term partnerships with its customers To find out more, please visit www.cw.com End
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