Nearly Half Of APAC Cos Not Running Any ROI Analysis For Cloud Initiatives

HP has released global research revealing that enterprises are accelerating cloud adoption, showing significant gains in private cloud investments and establishing hybrid delivery models that will meet their needs as organisational requirements change.

According to a new global study commissioned by HP, by 2016, 77 percent of enterprise IT delivery is expected to be cloud-based in Asia Pacific, with 38 percent as private cloud, 22 percent as managed cloud (private cloud managed by someone else) and 17 percent as public cloud. Traditional IT will remain a key delivery model accounting for 24 percent.

Rapid adoption rates in Asia Pacific are driven by respondents’ expectations that cloud will lower costs (59 percent), drive agility (58 percent) and improve customer/citizen service (62 percent). However, while the respondents expect these benefits, nearly half of organisations (46 percent) admit that they are not running any return on investment analysis for their cloud initiatives. For those organisations that do have some form of measurement, 13 percent say they only use “time to delivery” metrics, while 10 percent measure their cloud implementations by calculating the cost benefits.

More from Biztech

Future Group - Reliance Retail Deal approved by CCI RBI ban on cryptocurrencies takes effect; prohibition could force investors to tap the black market

Open Standards Are The Key To Cloud Success

The study indicated that as budgets continue to be funneled to cloud technology, enterprises want open architectures that span private, public, managed and traditional delivery models. In fact, 59 percent of respondents in Asia Pacific believe that cloud computing should evolve to an open platform.

Key Factors To Adopting A Cloud Strategy

The research also outlined the critical factors to implementing a cloud strategy and moving applications to the cloud.

Asia Pacific respondents noted defining service level agreements (SLAs) (62 percent), meeting regulation and governance (56 percent), managing issues with data sovereignty (54 percent) and identifying the right, strategic partner (42 percent) as the primary barriers to cloud solution implementation.

Sixty one percent of the companies surveyed have created a cloud sourcing strategy for the initial applications and workloads to be moved to the cloud.

For organisations with a cloud sourcing strategy, the most important applications to move to the cloud are customer relationship management (CRM) (70 percent), marketing (66 percent), and storage and archival (63 percent), with finance applications being the least likely to be transitioned.

Respondents in Asia Pacific rated security (68 percent); highly specified SLAs (66 percent) and the ability to handle enterprise-grade workloads (48 percent) as the most important capabilities in an organisation’s public cloud usage with credit card (pay-as-you-go) based solutions ranked least important, at 43 percent.