The Microsoft/Amárach Cloud Index Report
April 2012
0

In April 2012, Amárach Research conducted a telephone survey
of 151 organisations on behalf of Microsoft, comprising a range
of small, medium and large-sized enterprises, as well as public
sector organisations.
The focus of the survey was to ascertain adoption levels of
Cloud Computing within organisations and to establish the
business, operational and growth impact of Cloud Computing
by those who have adopted. Levels of awareness of the
potential of Cloud were also tracked as were issues relating to
delays in adoption.
Interviews took place with senior decision makers in each
organisation, including financial directors and managing
directors, as well as IT directors.
1

Irish businesses and
public sector bodies
see Cloud Computing
as important to their
response to the
challenges ahead…
2

The main external challenge facing Irish businesses remains sales and
growth against a sluggish economic background:
35% 33%
30%
30% 27%
25% 24%
25% 23% 23% New business development/Sales
18% 19% The wider Irish economy
20% 17%
16%
Strong competition
15% 13% 13%
Supply costs
9% 9%
9% 9% 9% 8%
10% 7% The global economy
6%
4% 4% 4% Financial challenges
5% 2% 2% 2%
0 0 0
0%
TOTAL 5-50 employees 51-250 250+ employees Public Sector
employees
Q. What are the main external challenges facing your organisation in the next 12 months?
Source: Amárach Research survey for Microsoft Ireland, 2012 3

The main internal challenges facing Irish businesses remains cost control
and staffing levels:
50%
45% 43%
40%
35%
Cost Control
30% 26%
25%
Staff levels/Personnel
25%
19% Staff motivation/Staff retention
20% 16% 16% 16% 15% 17%
15% 15%
15% 12% 13% 13% 13%
13% Cash flow
10% 11% 11%
9%
10% 7% 7% Maintaining competence
5% 4%
5% 2%
0%
TOTAL 5-50 employees 51-250 250+ employees Public Sector
employees
Q. What are the main internal challenges facing your organisation in the next 12 months?
Source: Amárach Research survey for Microsoft Ireland, 2012 4

Irish businesses are in a race between revenues and costs, though
revenues are slightly ahead on balance:
45%
40%
40% 37% 38%
35%
31%
30%
26%
25% 23% TOTAL
20% 18% 18% 5-50 employees
16% 16% 16%
14% 14% 14% 14% 51-250 employees
15% 12%
250+ employees
10% 7%
4% 4%
5%
0
0%
Your revenues will Your revenues will Both revenues and Your revenues will Your revenues will
grow faster than grow at the same costs will remain fall at the same ratefall faster than your
your costs rate as your costs broadly static as your costs costs
Q. What scenario do you expect for your business over the next 12 months?
Source: Amárach Research survey for Microsoft Ireland, 2012 5

The vast majority of private and public sector organisations expect
Cloud Computing to play a part in Ireland’s recovery:
90%
82% 83%
79%
80% 77%
70%
70%
60%
TOTAL
50% 5-50 employees
51-250 employees
40%
250+ employees
30% 26% Public Sector
20% 15%
13% 13%
9% 9% 8%
10% 7%
5% 4%
0%
Yes No Don't know/Refused
Q. Do you consider that Cloud computing is a tool that can play a part in getting the Irish
economy back to growth?
Source: Amárach Research survey for Microsoft Ireland, 2012 6

Furthermore, a majority of private and public sector organisations
believe Cloud Computing can help address their own challenges:
90%
83%
80%
72%
70%
60% 55% TOTAL
49% 51%
50% 45% 5-50 employees
42% 40%
40% 51-250 employees
250+ employees
30% 25%
Public Sector
20% 17%
10% 5% 7% 5% 4%
0
0%
Yes No Don't know/Refused
Q. Do you think that Cloud computing could play a role in helping to address the external
and internal challenges you face?
Source: Amárach Research survey for Microsoft Ireland, 2012 7

Businesses are
increasingly aware of
the benefits of the
Cloud, even if most
aren’t there yet…
8

The deployment of Cloud Computing is prevalent among larger
organisations, but has some way to go for smaller firms:
90%
79%
80%
70%
61% 62% 61%
60%
53%
50% 45%
Yes
37% 39%
40% 35% No
30%
21%
20%
10%
0%
TOTAL 5-50 employees 51-250 employees 250+ employees Public Sector
Q. Have you deployed Cloud Computing in your organisation?
Source: Amárach Research survey for Microsoft Ireland, 2012 9

Among those that have already deployed Cloud Computing, cost
savings and productivity gains are among the initial benefits:
90%
78%
80%
70%
60% 56% 57%
54%
50% 50%
50% 47% TOTAL
44% 44% 44% 44% 44%
39% 5-50 employees
40% 35%
33% 31%
28% 51-250 employees
30% 25% 25%
22% 22% 22% 250+ employees
20% 17%
11% 11% Public Sector
10%
0%
Cost savings (as a % Productivity gains Have developed a Have been able to Too soon to say
of overall costs) service based on expand without
cloud additional capital
investments
BASE : All who have deployed Cloud Computing in their organisation
Q. What benefits have you experienced since deploying Cloud computing in your organisation?
Source: Amárach Research survey for Microsoft Ireland, 2012 10

The deployment of Cloud Computing can be expected to gather
considerable momentum in light of widespread consideration:
100%
90% 86%
80% 75%
70%
62%
60%
51% 49% 53%
50% 47% Yes
38% No
40%
30% 25%
20% 14%
10%
0%
TOTAL 5-50 employees 51-250 employees 250+ employees Public Sector
BASE : All who have not deployed Cloud Computing in their organisation
Q. Have you considered deploying Cloud computing in your organisation?
Source: Amárach Research survey for Microsoft Ireland, 2012 11

A key driver of future Cloud adoption will be the potential for cost
savings and related benefits:
60%
52%
50% 47%
40% 36%
TOTAL
31%
30% 30%
5-50 employees
30% 26% 26%
22% 23% 51-250 employees
21%
19% 250+ employees
20% 16% 17% 16%
12% 12% 13% Public Sector
11%
11%
9% 9%
10% 7%7%
2%
0%
Cost benefits More efficient Storage Capability Quicker processing Mobile workforce
times
Q. What are the main benefits to your organisation of deploying Cloud Computing?
Source: Amárach Research survey for Microsoft Ireland, 2012 12

Security continues to be the main barrier to adopting Cloud
Computing, followed by related concerns about privacy:
90%
80% 77%
69%
70%
61%
60%
52%
50% TOTAL
39% 37% 40% 5-50 employees
40%
31% 51-250 employees
30% 25% 27% 250+ employees
23% 24%
23% 22% 24%
20%
17% Public Sector
20%
13% 13% 13%
13% 13%
10% 8% 8%
10%
0%
Security concerns Privacy concerns Financial resources Lack of awareness of Availability of the
the potential right IT skills
benefits
Q. What are the main barriers to deploying Cloud Computing in your organisation?
Source: Amárach Research survey for Microsoft Ireland, 2012 13

For larger organisations, Cloud Computing holds out the prospect of
expansion without additional capital investment:
80%
70%
70%
58%
60% 55%
53%
50%
50%
41% 42% 43%42% TOTAL
40% 5-50 employees
29% 30%
30% 51-250 employees
24%22% 22% 23%
250+ employees
20% 16%16% 16%
13% Public Sector
9%
10%
0%
Drive Cost savings (as a % Productivity gains Facilitate expansion Support development of a
of overall costs) without additional capital service based on cloud
investments
Q. What are the main drivers that would encourage consideration of a move toward Cloud
Computing in your organisation?
Source: Amárach Research survey for Microsoft Ireland, 2012 14

Nevertheless, the
Cloud Index tells us
that the Cloud is still
at an early stage of
adoption in Ireland…
15

The Microsoft/Amárach Cloud Index:
3.2
1 10
Ireland
April 2012
Q. On a scale of 1 to 10, where 1 is complete beginners status and 10 is fully implemented, where
would you locate your own organisation in terms of its adoption of Cloud Computing?
Source: Amárach Research survey for Microsoft Ireland, 2012 16

The Microsoft/Amárach Cloud Index:
2.4 3.0 4.0
1 10
5-50 250+
employees employees
51-250
employees &
Public Sector
Q. On a scale of 1 to 10, where 1 is complete beginners status and 10 is fully implemented, where
would you locate your own organisation in terms of its adoption of Cloud Computing?
Source: Amárach Research survey for Microsoft Ireland, 2012 17

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