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!

IBM Launches Commercial Quantum Network with Samsung, ORNL

December 14, 2017

In the race to commercialize quantum computing, IBM is one of several companies leading the pack. Today, IBM announced it had signed JPMorgan Chase, Daimler AG, Samsung and a number of other corporations to its IBM Q Net Read more…

By Tiffany Trader

TACC Researchers Test AI Traffic Monitoring Tool in Austin

December 13, 2017

Traffic jams and mishaps are often painful and sometimes dangerous facts of life. At this week’s IEEE International Conference on Big Data being held in Boston, researchers from TACC and colleagues will present a new Read more…

By HPCwire Staff

AMD Wins Another: Baidu to Deploy EPYC on Single Socket Servers

December 13, 2017

When AMD introduced its EPYC chip line in June, the company said a portion of the line was specifically designed to re-invigorate a single socket segment in what has become an overwhelmingly two-socket landscape in the d Read more…

By John Russell

HPE Extreme Performance Solutions

Explore the Origins of Space with COSMOS and Memory-Driven Computing

From the formation of black holes to the origins of space, data is the key to unlocking the secrets of the early universe. Read more…

Microsoft Wants to Speed Quantum Development

December 12, 2017

Quantum computing continues to make headlines in what remains of 2017 as several tech giants jockey to establish a pole position in the race toward commercialization of quantum. This week, Microsoft took the next step in Read more…

By Tiffany Trader

IBM Launches Commercial Quantum Network with Samsung, ORNL

December 14, 2017

In the race to commercialize quantum computing, IBM is one of several companies leading the pack. Today, IBM announced it had signed JPMorgan Chase, Daimler AG, Read more…

By Tiffany Trader

AMD Wins Another: Baidu to Deploy EPYC on Single Socket Servers

December 13, 2017

When AMD introduced its EPYC chip line in June, the company said a portion of the line was specifically designed to re-invigorate a single socket segment in wha Read more…

By John Russell

Microsoft Wants to Speed Quantum Development

December 12, 2017

Quantum computing continues to make headlines in what remains of 2017 as several tech giants jockey to establish a pole position in the race toward commercializ Read more…

By Tiffany Trader

HPC Iron, Soft, Data, People – It Takes an Ecosystem!

December 11, 2017

Cutting edge advanced computing hardware (aka big iron) does not stand by itself. These computers are the pinnacle of a myriad of technologies that must be care Read more…

By Alex R. Larzelere

IBM Begins Power9 Rollout with Backing from DOE, Google

December 6, 2017

After over a year of buildup, IBM is unveiling its first Power9 system based on the same architecture as the Department of Energy CORAL supercomputers, Summit a Read more…

By Tiffany Trader

Microsoft Spins Cycle Computing into Core Azure Product

December 5, 2017

Last August, cloud giant Microsoft acquired HPC cloud orchestration pioneer Cycle Computing. Since then the focus has been on integrating Cycle’s organization Read more…

By John Russell

GlobalFoundries, Ayar Labs Team Up to Commercialize Optical I/O

December 4, 2017

GlobalFoundries (GF) and Ayar Labs, a startup focused on using light, instead of electricity, to transfer data between chips, today announced they've entered in Read more…

By Tiffany Trader

HPE In-Memory Platform Comes to COSMOS

November 30, 2017

Hewlett Packard Enterprise is on a mission to accelerate space research. In August, it sent the first commercial-off-the-shelf HPC system into space for testing Read more…

By Tiffany Trader

US Coalesces Plans for First Exascale Supercomputer: Aurora in 2021

September 27, 2017

At the Advanced Scientific Computing Advisory Committee (ASCAC) meeting, in Arlington, Va., yesterday (Sept. 26), it was revealed that the "Aurora" supercompute Read more…

By Tiffany Trader

NERSC Scales Scientific Deep Learning to 15 Petaflops

August 28, 2017

A collaborative effort between Intel, NERSC and Stanford has delivered the first 15-petaflops deep learning software running on HPC platforms and is, according Read more…

By Rob Farber

Oracle Layoffs Reportedly Hit SPARC and Solaris Hard

September 7, 2017

Oracle’s latest layoffs have many wondering if this is the end of the line for the SPARC processor and Solaris OS development. As reported by multiple sources Read more…

By John Russell

AMD Showcases Growing Portfolio of EPYC and Radeon-based Systems at SC17

November 13, 2017

AMD’s charge back into HPC and the datacenter is on full display at SC17. Having launched the EPYC processor line in June along with its MI25 GPU the focus he 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

Japan Unveils Quantum Neural Network

November 22, 2017

The U.S. and China are leading the race toward productive quantum computing, but it's early enough that ultimate leadership is still something of an open questi Read more…

By Tiffany Trader

GlobalFoundries Puts Wind in AMD’s Sails with 12nm FinFET

September 24, 2017

From its annual tech conference last week (Sept. 20), where GlobalFoundries welcomed more than 600 semiconductor professionals (reaching the Santa Clara venue Read more…

By Tiffany Trader

Amazon Debuts New AMD-based GPU Instances for Graphics Acceleration

September 12, 2017

Last week Amazon Web Services (AWS) streaming service, AppStream 2.0, introduced a new GPU instance called Graphics Design intended to accelerate graphics. The Read more…

By John Russell

Leading Solution Providers

IBM Begins Power9 Rollout with Backing from DOE, Google

December 6, 2017

After over a year of buildup, IBM is unveiling its first Power9 system based on the same architecture as the Department of Energy CORAL supercomputers, Summit a Read more…

By Tiffany Trader

Perspective: What Really Happened at SC17?

November 22, 2017

SC is over. Now comes the myriad of follow-ups. Inboxes are filled with templated emails from vendors and other exhibitors hoping to win a place in the post-SC thinking of booth visitors. Attendees of tutorials, workshops and other technical sessions will be inundated with requests for feedback. Read more…

By Andrew Jones

EU Funds 20 Million Euro ARM+FPGA Exascale Project

September 7, 2017

At the Barcelona Supercomputer Centre on Wednesday (Sept. 6), 16 partners gathered to launch the EuroEXA project, which invests €20 million over three-and-a-half years into exascale-focused research and development. Led by the Horizon 2020 program, EuroEXA picks up the banner of a triad of partner projects — ExaNeSt, EcoScale and ExaNoDe — building on their work... Read more…

By Tiffany Trader

Delays, Smoke, Records & Markets – A Candid Conversation with Cray CEO Peter Ungaro

October 5, 2017

Earlier this month, Tom Tabor, publisher of HPCwire and I had a very personal conversation with Cray CEO Peter Ungaro. Cray has been on something of a Cinderell Read more…

By Tiffany Trader & Tom Tabor

Tensors Come of Age: Why the AI Revolution Will Help HPC

November 13, 2017

Thirty years ago, parallel computing was coming of age. A bitter battle began between stalwart vector computing supporters and advocates of various approaches to parallel computing. IBM skeptic Alan Karp, reacting to announcements of nCUBE’s 1024-microprocessor system and Thinking Machines’ 65,536-element array, made a public $100 wager that no one could get a parallel speedup of over 200 on real HPC workloads. Read more…

By John Gustafson & Lenore Mullin

Flipping the Flops and Reading the Top500 Tea Leaves

November 13, 2017

The 50th edition of the Top500 list, the biannual publication of the world’s fastest supercomputers based on public Linpack benchmarking results, was released Read more…

By Tiffany Trader

Intel Launches Software Tools to Ease FPGA Programming

September 5, 2017

Field Programmable Gate Arrays (FPGAs) have a reputation for being difficult to program, requiring expertise in specialty languages, like Verilog or VHDL. Easin Read more…

By Tiffany Trader

HPC Chips – A Veritable Smorgasbord?

October 10, 2017

For the first time since AMD's ill-fated launch of Bulldozer the answer to the question, 'Which CPU will be in my next HPC system?' doesn't have to be 'Whichever variety of Intel Xeon E5 they are selling when we procure'. Read more…

By Dairsie Latimer

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