Cloud Adoption on the Rise at Large Companies

By Tiffany Trader

March 27, 2012

Tata Consultancy Services (TCS) conducted a survey involving senior managers and corporate IT executives from over 600 large companies (most with greater than $1 billion in revenue) to find out how various business functions are using cloud strategies. Contributors to the study include such industry giants as AOL, CTB/McGraw Hill, Commonwealth Bank of Australia, Dell Inc., as well as a major telecommunications services company and a large consumer products outfit.

The TCS report, The State of Cloud Application Adoption in Large Enterprises, found that cloud applications have a solid market share across all four geographical regions studied, US, Europe, Asia-Pacific, and Latin America. Out of US companies surveyed, currently 19% of applications are cloud-based, 12% in Europe, 28% in Asia-Pacific, and 39% in Latin America. While this does not yet represent a majority share, the ratio of cloud to on-premises applications is set to increase greatly by 2014, up to 54% (Latin America), 52% (Asia Pacific), 33% (US) and 24% (Europe).

TCS sought to distinguish this survey by focusing on the use of cloud for specific business functions, such as marketing, sales, R&D, distribution, manufacturing, operations, and finance. Survey participants were asked about motivating drivers, benefits and competitive advantages, and future plans with 2014 cited as a target date.

Top 10 Key findings:

Finding No. 1: Despite the hype, cloud applications do not rule the large corporation, although their usage is expected to increase significantly.

Finding No. 2: The biggest driver of cloud applications is not to cut IT costs.

Finding No. 3: The early returns on cloud applications are impressive.

Finding No. 4: Customer-facing business functions are garnering the largest share of the cloud application budget.

Finding No. 5: Many companies are reluctant to put applications with sensitive data in the cloud.

Finding No. 6: The heaviest users of cloud applications are the companies that manufacture the technology hardware that enables cloud computing (computers/electronics/telecom equipment), while healthcare services providers are the lightest users (in terms of average number cloud apps per business function).

Finding No. 7: The most aggressive adopters of cloud applications are companies in Asia-Pacific and Latin America.

Finding No. 8: Despite a significant shift to cloud applications, most companies (especially in Europe) remain conservative about which applications they put in public clouds.

Finding No. 9: The keys to adopting and benefiting from cloud applications are overcoming fear of security risks and skepticism about ROI.

Finding No. 10: Companies evaluate cloud vendors most on their security and reliability/uptime capabilities – and far less on their price.

In an era where cloud is often asked to justify itself based on price metrics, items 2 and 10 are especially telling. In this survey, price was considered secondary to security and reliability. And in a similar vein, IT cost savings took a back seat to improved operational efficiency. According to the survey, companies in the US and Asia-Pacific are adopting cloud to support software applications and business processes across a company, while in Europe and Latin America, the main driver is increasing applications or systems flexibility, i.e., the ability to quickly ramp up and ramp down applications. Cloud is also being used to launch entirely new systems and to enter new lines of business. Given the barriers associated with moving legacy systems into the cloud, it makes sense for companies to wait until a natural transition period.

Big data was another major driver with 65% of the US survey respondents citing the need “to improve data and trend analysis” as either “important” or “very important.” Asia-Pacific companies had a similar response at 66%, while only 47% of European companies were committed to this strategy. Latin America, however, was the biggest proponent of the cloud-for-big-data angle, with 80% of responders citing this driver. Interestingly, the report authors found that the companies who benefited the most from cloud adoption were those that had the most interest in using cloud-based resources to manage big data needs.

More than anything else, successful companies understand the need to position themselves to compete in the future while managing current business realities. This is cloud’s promise: that it will foster innovation and competition on the global playing field.

N Chandrasekaran, CEO and managing director of 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.”

Subscribe to HPCwire's Weekly Update!

Be the most informed person in the room! Stay ahead of the tech trends with industy updates delivered to you every week!

Glimpses of Today’s Total Solar Eclipse

August 21, 2017

Here are a few arresting images posted by NASA of today’s total solar eclipse. Such astronomical events have always captured our imagination and it’s not hard to understand why such occurrences were often greeted wit Read more…

By John Russell

Tech Giants Outline Battle Plans for Future HPC Market

August 21, 2017

Four companies engaged in a cage fight for leadership in the emerging HPC market of the 2020s are, despite deep differences in some areas, in violent agreement on at least one thing: the power consumption and latency pen Read more…

By Doug Black

Geospatial Data Research Leverages GPUs

August 17, 2017

MapD Technologies, the GPU-accelerated database specialist, said it is working with university researchers on leveraging graphics processors to advance geospatial analytics. The San Francisco-based company is collabor Read more…

By George Leopold

HPE Extreme Performance Solutions

Leveraging Deep Learning for Fraud Detection

Advancements in computing technologies and the expanding use of e-commerce platforms have dramatically increased the risk of fraud for financial services companies and their customers. Read more…

Intel, NERSC and University Partners Launch New Big Data Center

August 17, 2017

A collaboration between the Department of Energy’s National Energy Research Scientific Computing Center (NERSC), Intel and five Intel Parallel Computing Centers (IPCCs) has resulted in a new Big Data Center (BDC) that Read more…

By Linda Barney

Tech Giants Outline Battle Plans for Future HPC Market

August 21, 2017

Four companies engaged in a cage fight for leadership in the emerging HPC market of the 2020s are, despite deep differences in some areas, in violent agreement Read more…

By Doug Black

Microsoft Bolsters Azure With Cloud HPC Deal

August 15, 2017

Microsoft has acquired cloud computing software vendor Cycle Computing in a move designed to bring orchestration tools along with high-end computing access capabilities to the cloud. Terms of the acquisition were not disclosed. Read more…

By George Leopold

HPE Ships Supercomputer to Space Station, Final Destination Mars

August 14, 2017

With a manned mission to Mars on the horizon, the demand for space-based supercomputing is at hand. Today HPE and NASA sent the first off-the-shelf HPC system i Read more…

By Tiffany Trader

AMD EPYC Video Takes Aim at Intel’s Broadwell

August 14, 2017

Let the benchmarking begin. Last week, AMD posted a YouTube video in which one of its EPYC-based systems outperformed a ‘comparable’ Intel Broadwell-based s Read more…

By John Russell

Deep Learning Thrives in Cancer Moonshot

August 8, 2017

The U.S. War on Cancer, certainly a worthy cause, is a collection of programs stretching back more than 40 years and abiding under many banners. The latest is t Read more…

By John Russell

IBM Raises the Bar for Distributed Deep Learning

August 8, 2017

IBM is announcing today an enhancement to its PowerAI software platform aimed at facilitating the practical scaling of AI models on today’s fastest GPUs. Scal Read more…

By Tiffany Trader

IBM Storage Breakthrough Paves Way for 330TB Tape Cartridges

August 3, 2017

IBM announced yesterday a new record for magnetic tape storage that it says will keep tape storage density on a Moore's law-like path far into the next decade. Read more…

By Tiffany Trader

AMD Stuffs a Petaflops of Machine Intelligence into 20-Node Rack

August 1, 2017

With its Radeon “Vega” Instinct datacenter GPUs and EPYC “Naples” server chips entering the market this summer, AMD has positioned itself for a two-head Read more…

By Tiffany Trader

How ‘Knights Mill’ Gets Its Deep Learning Flops

June 22, 2017

Intel, the subject of much speculation regarding the delayed, rewritten or potentially canceled “Aurora” contract (the Argonne Lab part of the CORAL “ Read more…

By Tiffany Trader

Nvidia’s Mammoth Volta GPU Aims High for AI, HPC

May 10, 2017

At Nvidia's GPU Technology Conference (GTC17) in San Jose, Calif., this morning, CEO Jensen Huang announced the company's much-anticipated Volta architecture a Read more…

By Tiffany Trader

Reinders: “AVX-512 May Be a Hidden Gem” in Intel Xeon Scalable Processors

June 29, 2017

Imagine if we could use vector processing on something other than just floating point problems.  Today, GPUs and CPUs work tirelessly to accelerate algorithms Read more…

By James Reinders

Russian Researchers Claim First Quantum-Safe Blockchain

May 25, 2017

The Russian Quantum Center today announced it has overcome the threat of quantum cryptography by creating the first quantum-safe blockchain, securing cryptocurrencies like Bitcoin, along with classified government communications and other sensitive digital transfers. Read more…

By Doug Black

Quantum Bits: D-Wave and VW; Google Quantum Lab; IBM Expands Access

March 21, 2017

For a technology that’s usually characterized as far off and in a distant galaxy, quantum computing has been steadily picking up steam. Just how close real-wo Read more…

By John Russell

Nvidia Responds to Google TPU Benchmarking

April 10, 2017

Nvidia highlights strengths of its newest GPU silicon in response to Google's report on the performance and energy advantages of its custom tensor processor. Read more…

By Tiffany Trader

Groq This: New AI Chips to Give GPUs a Run for Deep Learning Money

April 24, 2017

CPUs and GPUs, move over. Thanks to recent revelations surrounding Google’s new Tensor Processing Unit (TPU), the computing world appears to be on the cusp of Read more…

By Alex Woodie

HPC Compiler Company PathScale Seeks Life Raft

March 23, 2017

HPCwire has learned that HPC compiler company PathScale has fallen on difficult times and is asking the community for help or actively seeking a buyer for its a Read more…

By Tiffany Trader

Leading Solution Providers

Trump Budget Targets NIH, DOE, and EPA; No Mention of NSF

March 16, 2017

President Trump’s proposed U.S. fiscal 2018 budget issued today sharply cuts science spending while bolstering military spending as he promised during the cam Read more…

By John Russell

Google Debuts TPU v2 and will Add to Google Cloud

May 25, 2017

Not long after stirring attention in the deep learning/AI community by revealing the details of its Tensor Processing Unit (TPU), Google last week announced the Read more…

By John Russell

CPU-based Visualization Positions for Exascale Supercomputing

March 16, 2017

In this contributed perspective piece, Intel’s Jim Jeffers makes the case that CPU-based visualization is now widely adopted and as such is no longer a contrarian view, but is rather an exascale requirement. Read more…

By Jim Jeffers, Principal Engineer and Engineering Leader, Intel

Six Exascale PathForward Vendors Selected; DoE Providing $258M

June 15, 2017

The much-anticipated PathForward awards for hardware R&D in support of the Exascale Computing Project were announced today with six vendors selected – AMD Read more…

By John Russell

Top500 Results: Latest List Trends and What’s in Store

June 19, 2017

Greetings from Frankfurt and the 2017 International Supercomputing Conference where the latest Top500 list has just been revealed. Although there were no major Read more…

By Tiffany Trader

IBM Clears Path to 5nm with Silicon Nanosheets

June 5, 2017

Two years since announcing the industry’s first 7nm node test chip, IBM and its research alliance partners GlobalFoundries and Samsung have developed a proces Read more…

By Tiffany Trader

Messina Update: The US Path to Exascale in 16 Slides

April 26, 2017

Paul Messina, director of the U.S. Exascale Computing Project, provided a wide-ranging review of ECP’s evolving plans last week at the HPC User Forum. Read more…

By John Russell

Graphcore Readies Launch of 16nm Colossus-IPU Chip

July 20, 2017

A second $30 million funding round for U.K. AI chip developer Graphcore sets up the company to go to market with its “intelligent processing unit” (IPU) in Read more…

By Tiffany Trader

  • arrow
  • Click Here for More Headlines
  • arrow
Share This