What are the benefits of migrating to the Cloud and what are the inhibitors to adoption? The new CloudIndex, showing the level of maturity of enterprise Cloud computing among French companies, tells the story.
Has Cloud computing become a practical reality among French companies yet? The simple answer is yes, even though this does not hold true for every firm and few companies are showing signs of having a real strategic approach to the Cloud. These are the findings of Pierre Audoin Consultants (PAC) in the first edition of their CloudIndex*, whose purpose is to assess on a half-yearly basis the state of play among French companies in terms of Cloud computing. In June 2013, the maturity rating was 443 out of 1000 on the basis of a survey of over 220 firms. The results of the first CloudIndex show that migrating to the Cloud is first and foremost motivated by firms’ desire to increase flexibility rather than reduce their costs.
Flexibility, number one benefit of Cloud computing
This is especially the case for the adoption of software as a service (SaaS), the spearhead of Cloud computing in France, as it simplifies the deployment of applications in the fields of Human Resources, Customer Relationship Management and office automation, dispensing with initial financial investment by shifting the necessary expenditure from capital investment to operating costs. According to PAC the results indicate increasing maturity in companies’ thinking and approach to Cloud computing. However, the consultancy underlines that although companies may have grasped the concept of flexibility, they do not always capitalise fully on the potential advantages. In fact just 35% of those surveyed believe that Cloud computing can help them to create and develop solutions or come up with innovative initiatives and only 16% see it as a driver to invent new business models.
Security the biggest inhibitor
Security issues have emerged as the number one barrier for 44% of those companies which have not yet ventured into the Cloud, despite the fact that, according to PAC, the level of security afforded by Cloud suppliers is on the whole higher than what is on offer from other providers. Other obstacles blocking the path to the Cloud are a shortage of migration solutions for their specific business and/or the absence of any financial gain. Nevertheless, when it comes to assessing return on investment, PAC advises companies to take into account the benefits offered by the Cloud in terms of agility. In September, PAC is due to launch a new self-assessment app to help firms compare themselves with their peers.
*The Index was calculated on the basis of 135 criteria, with a grading scale set for each criterion. Each criterion is also weighted, and the Index gives both a mark for each and an overall grade.