In September-October 2015, The Economist Intelligence Unit, sponsored by VMware, asked a panel of 360 senior executives and thought leaders their views on the future of cloud computing. These were decision-makers—all directors or above, including half from the C-Suite or board of directors of their companies or non-profit organisations and approximately one-third with an IT background. Collectively they present a strong global perspective, and were drawn equally from developed and developing nations.

1. A report from The Economist Intelligence Unit
Sponsored by
Ascending cloud:
The adoption of
cloud computing
in five industries
Executive summary

2. © The Economist Intelligence Unit Limited 20161
Ascending cloud: The adoption of cloud computing in five industries
Executive summary
Introduction 2
Cloud computing—findings for all industries 3
Manufacturing—a special case of cloud adoption 8
Contents

3. © The Economist Intelligence Unit Limited 20162
Ascending cloud: The adoption of cloud computing in five industries
Executive summary
A new report published today March 1, 2016 by
The Economist Intelligence Unit (EIU), sponsored
by VMware, predicts that cloud computing will
grow at a rapid pace to become a factor in the
digitisation of major industries.
• Cloud computing has strong growth potential,
with only 7% of all IT and business executives
surveyed believing it currently has a pervasive
presence across all industries.
• However, a diverse range of global executives
predict the rapid growth of cloud in five key
industries: banking, retail, manufacturing,
education and healthcare. Approximately
70% of panelists expect cloud will be a major
factor across their own industry in five years.
• Across all industries, the greatest challenges
were seen to be ensuring data security (47% of
all executives) and finding qualified personnel
to build out and operate cloud systems (35%).
Ascending cloud: The adoption of cloud
computing in five industries, sponsored by
VMware, is based on a global survey of 360 senior
executives who are familiar with cloud computing
in their industry and country. The sample was
comprised of senior executives, with over half of
them from the C-Suite of their companies or
non-profit organisations. The panel was divided
equally into sub-panels representing the banking,
retailing, manufacturing, education and
healthcare industries. Developed and developing
countries were equally represented in the survey.
For the full report, which contains an analysis of
manufacturing, click here. Please click here for
the reports on healthcare and continuing
education.
The following is a summary of the key findings of
the report. For further information, please contact:
West Coghlan
Senior Editor, Technology
Economist Intelligence Unit
westcoghlan@economist.com
Introduction

4. © The Economist Intelligence Unit Limited 20163
Ascending cloud: The adoption of cloud computing in five industries
Executive summary
1. Current presence of cloud computing
On a global basis, cloud is seen as having a significant current presence (43%), but with significant
potential to grow (only 7% of respondents said cloud was pervasive at the current time).
Current rates of cloud penetration differ by industry. Information-based industries such as banking
lead in penetration, while “physical” industries such as manufacturing and regulated ones like
healthcare and education appear to be adopting cloud more slowly.
Cloud computing—findings for all
industries
Source: EIU Survey “Cloud Computing and Economic Development”, October 2015
Banking Retail Manu-
facturing
Education Healthcare Industry
average
Pervasive presence
Significant presence
How would you characterise the current presence of cloud in the following industries?
% of respondents reporting a significant or pervasive presence
52
7
57
1
42
7
34
10
31
8
43
7

5. © The Economist Intelligence Unit Limited 20164
Ascending cloud: The adoption of cloud computing in five industries
Executive summary
2. The growth of cloud across
all industries
Cloud is expected to grow rapidly from this
relatively low base. Almost 70% of panelists
believe that cloud computing will be a major
factor across all surveyed industries in five years.
3. The challenges of cloud
The deployment of cloud is seen to have
significant challenges. As is the case in many parts
of the technology industry, data security is held to
be the greatest challenge to the deployment of
cloud. Poor infrastructure was seen as a particular
challenge in developing countries. The availability
of qualified personnel is seen as a challenge
across industries on a global basis.
Source: EIU Survey “Cloud Computing and
Economic Development”, October 2015
Major factor
Moderate factor
Rate of cloud penetration
% saying cloud will be a moderate or major factor
Average of all industries
In one
year
In three
years
In five
years
47
19
40
43
21
69
Source: EIU Survey “Cloud Computing and
Economic Development”, October 2015
What are the greatest challenges to cloud?
In order of importance
(% respondents)
Hacking, cyber-crime and cyber-espionage
Poor infrastructure
Qualified personnel
Consumer resistance
Foreign competition
Lack of entrepreneurs
Poor education system
Vested interests
Lack of capital
Competes with existing business
Government regulation
47
37
36
29
29
28
26
25
22
20
15

6. © The Economist Intelligence Unit Limited 20165
Ascending cloud: The adoption of cloud computing in five industries
Executive summary
Source: EIU Survey “Cloud Computing and
Economic Development”, October 2015
Major factor
Moderate factor
Future cloud penetration of the retail industry
% saying cloud will be a moderate or major factor
In one
year
In three
years
In five
years
57
14
43
41
23
70
4. Cloud computing and
banking
There is an expectation of rapid adoption of
cloud in banking—almost three out of four predict
cloud will be a major factor in banking in five
years. Cloud is expected to be deployed to
support a range of banking products, and to
enable the extension of banking services to poor
and remote populations.
5. The impact of cloud on the
retail industry
Our retail experts expect a similar pattern of rapid
cloud penetration in the retail industry, with 70% of
panelists expecting cloud to be a major factor in
the industry in five years. From a relatively modest
base, the expectation is that cloud will grow
five-fold as a major factor in retailing. One of the
impacts of cloud appears to be making retailing
more consumer-friendly, as a technology being
used to increase access, lower prices and
reducing costs for the customer.
Source: EIU Survey “Cloud Computing and
Economic Development”, October 2015
Major factor
Moderate factor
Future cloud penetration of the
banking industry
% saying cloud will be a moderate or major factor
In one
year
In three
years
In five
years
52
19
53
36
15
74
Source: EIU Survey “Cloud Computing and
Economic Development”, October 2015
Very important
Somewhat important
How important is cloud in supporting
sectors of the banking industry?
% saying cloud will be somewhat or very important
New ways to make payments
Lowering banking costs
Banking for remote populations
New ways of saving
Banking for poor populations
New ways of lending
68 21
60 32
57 34
50 45
43 42
42 47
Source: EIU Survey “Cloud Computing and
Economic Development”, October 2015
Very important
Somewhat important
How important is cloud in supporting
sectors of the retail industry?
% saying cloud will be somewhat or very important
Reducing costs of goods and services
Helping new companies grow
Increasing access to retail
Making goods more available
Making shopping more convenient
58 33
49 45
48 41
43 44
40 51

7. © The Economist Intelligence Unit Limited 20166
Ascending cloud: The adoption of cloud computing in five industries
Executive summary
6. The impact of cloud on
manufacturing
Manufacturing is expected to experience a high
rate of cloud penetration, with 71% of panelists
projecting it will be a major factor in the industry in
five years. Cloud is expected to impact each
stage of the manufacturing value chain, from
suppliers to distribution to customers.
Source: EIU Survey “Cloud Computing and
Economic Development”, October 2015
Major factor
Moderate factor
Future cloud penetration of the
manufacturing industry
% saying cloud will be a moderate or major factor
In one
year
In three
years
In five
years
46
15
43
43
21
71
Source: EIU Survey “Cloud Computing and
Economic Development”, October 2015
Very important
Somewhat important
How important is cloud in supporting
sectors of the manufacturing industry?
% saying cloud will be somewhat or very important
Supporting production processes
Better supply chain management
Enabling design and prototyping
Inventory, orders and distribution
60 30
54 35
52 39
48 40
7. Cloud computing and
education
Education shows a somewhat slower initial
adoption rate than other industries, but with
acceleration in the 3-5 year timeframe. Possible
reasons include a less competitive environment
and traditionally slower rates of technology
adoption by government.1
Cloud is expected to
impact all sectors of education, but with the
greatest impact on higher education.
Source: EIU Survey “Cloud Computing and
Economic Development”, October 2015
Major factor
Moderate factor
Future cloud penetration of the
education industry
% saying cloud will be a moderate or major factor
In one
year
In three
years
In five
years
55
20 29
47
18
67
Source: EIU Survey “Cloud Computing and
Economic Development”, October 2015
Very important
Somewhat important
How important is cloud in supporting
sectors of the education industry?
% saying cloud will be somewhat or very important
Higher education (university)
Education for remote areas
Continuing/adult education
Mid-level students (ages 11-17)
Education for low-income
Educating young students (ages 3-10)
51 34
42 38
40 44
40 46
34 42
25 48
1. Information Week, Public
Sector Slow to Adopt
Cloud Computing, June
2012

8. © The Economist Intelligence Unit Limited 20167
Ascending cloud: The adoption of cloud computing in five industries
Executive summary
8. Cloud computing and
healthcare
Cloud is expected to become a major factor in
healthcare by 61% of healthcare experts. Cloud is
geared to support remote diagnostics and
treatment, helping to empower the patient with
knowledge of their own condition. It may also
support the extensive data requirements of
preventative care, supporting a long-term industry
goal of holistic medicine.
Source: EIU Survey “Cloud Computing and
Economic Development”, October 2015
Major factor
Moderate factor
Future cloud penetration of the
healthcare industry
% saying cloud will be a moderate or major factor
In one
year
In three
years
In five
years
26
25
32
49
28
61
Source: EIU Survey “Cloud Computing and
Economic Development”, October 2015
Very important
Somewhat important
How important is cloud in supporting
sectors of the healthcare industry?
% saying cloud will be somewhat or very important
Centralisation of health records
Supporting preventative care
Care for low-income populations
Supporting remote diagnosis
Supporting remote treatment
57 27
53 32
45 35
44 32
43 37

9. © The Economist Intelligence Unit Limited 20168
Ascending cloud: The adoption of cloud computing in five industries
Executive summary
1. Cloud and the
manufacturing supply chain
Cloud will have a strong impact on supply chain
management, with 89% of manufacturing experts
saying cloud will be somewhat or very important.
Interviews with experts identified cost reduction,
expanding the base of suppliers and the ability to
track shipments as areas where cloud may make
a contribution.
Our panelists were asked for their views on which industry will have most impact on economic growth. By
a sizeable margin, manufacturing was expected to make the greatest contribution to economic
prosperity. With this in mind, a deeper analysis was made of the impact of cloud on manufacturing. The
manufacturing sub-panel was asked to assess cloud’s impact on four key stages in the manufacturing
value chain—supply chain, design and prototyping, production and distribution to customers.
Manufacturing—a special case of
cloud adoption
Which sectors will drive economic growth?
Which of the following do you feel will have the greatest impact on your country’s overall economic
prosperity in the next three years?
(% respondents)
New forms of manufacturing through new technologies
New forms of education through new technologies
New forms of retailing through new technologies
New forms of banking through new technologies
New forms of healthcare through new technologies
28
20
20
18
13
Source: EIU Survey “Cloud Computing and Economic Development”, October 2015
Source: EIU Survey “Cloud Computing and
Economic Development”, October 2015
What will be the importance of cloud in
manufacturing supply chain in one year’s
time?
(% respondents)
1 10
3554
Very
unimportant
Somewhat
unimportant
Somewhat
important
Very
important

10. © The Economist Intelligence Unit Limited 20169
Ascending cloud: The adoption of cloud computing in five industries
Executive summary
2. Cloud and design and
prototyping
90% of manufacturing experts predict cloud will
be somewhat or very important in the design and
prototyping stage of manufacturing. They
identified cost reduction, acceleration of time to
market and product customisation as activities
that could become cloud-enabled.
Source: EIU Survey “Cloud Computing and
Economic Development”, October 2015
What will be the importance of cloud in
manufacturing design and prototyping in
one year’s time?
(% respondents)
4 6
3951
Very
unimportant
Somewhat
unimportant
Somewhat
important
Very
important
3. Cloud computing and
manufacturing production
Cloud will also have a significant impact on the
production phase, with 90% of manufacturing
experts saying cloud will be somewhat or very
important. Manufacturing experts identified
increased operating efficiencies and boosting
manufacturing flexibility as processes that cloud
could support.
Source: EIU Survey “Cloud Computing and
Economic Development”, October 2015
What will be the importance of cloud in
manufacturing production in one year’s
time?
(% respondents)
4 6
30
60
Very
unimportant
Somewhat
unimportant
Somewhat
important
Very
important
4. Cloud and the
manufacturing customer
88% of manufacturing experts believe that cloud
will be somewhat or very important in the
distribution and customer relationships stage of
manufacturing. Manufacturing experts identified
increased visibility into shipments and increased
partnerships between suppliers and customers as
two areas that might be supported by cloud
computing.
Source: EIU Survey “Cloud Computing and
Economic Development”, October 2015
What will be the importance of cloud in
manufacturing distribution and customer
relationships in one year’s time?
(% respondents)
1 10
40
48
Very
unimportant
Somewhat
unimportant
Somewhat
important
Very
important

11. © The Economist Intelligence Unit Limited 201610
Ascending cloud: The adoption of cloud computing in five industries
Executive summary
Whilst every effort has been taken to verify the accuracy
of this information, neither The Economist Intelligence
Unit Ltd. nor the sponsor of this report can accept any
responsibility or liability for reliance by any person on this
report or any of the information, opinions or conclusions
set out in the report.
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