Cloud for Business Managers


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A new report from Dynamic Markets shows that – far from improving agility and effectiveness – 52 percent of organizations have missed deadlines and 75 percent have damaged their ability to innovate due to poor integration between cloud applications and other operational systems.

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Cloud for Business Managers

  1. 1. May 2013Independent Market ResearchCommissioned byCloudforBusinessManagers:theGood,theBadandtheUgly
  2. 2. © Dynamic Markets Limited 2013Cloud for Business Managers: the Good, the Bad and the Ugly1• 71% of companies have adopted cloud applicationsand line-of-business managers in all departmentsuse them.• 76% of adopters say their motivation was to getquick access to software, while 47% took on theapps to get access to more appropriate software fortheir department.• However, 54% say their department hasexperienced staff downtime due to cloudintegration problems and another 54% say projectdeadlines have been missed.• 83% have been prevented from getting the bestout of their departmental cloud applications - 1 in 4blames poor integration.• 75% say their ability to innovate using their cloudapps has been hindered and the main hindrance isa lack of integration (53%).• Indeed, 1 in 2 companies has abandoned the use ofat least 1 departmental cloud app in the last 3 yearsdue to integration problems.• Yet, 81% of all respondents think it is important thatcloud applications are fully integrated with eachother and with other software in the organisation.• Among those who claim to have integrated cloudapps, integration seems to be only partial, coveringsome apps / processes / departments.• Indeed, 68% of cloud adopters have attemptedintegration, but 55% of these have tried and failed.• 42% have seen a data security breach in theirdepartment associated directly with the use ofcloud apps.Key FindingsBackground and introduction:This research set out to investigate the ways in which line-of-business managers in large companies across the worldwith £50 million+ revenues are using cloud apps in theirdepartments. It explores their motivations for adoptingcloud apps, how easily they are able to share informationgenerated within the apps across the company and anyproblems they have encountered in this respect. Thefindings show that the adoption of cloud apps across theworld is remarkably high and in all departments, but thatintegration problems are endemic.Customisation:Best-in-class software:In an ideal world, all companies would surely want top-quality software to drive their business forward and givethem the edge over their competition. The reality is,however, that 32% of these large organisations agree thatthe cost of top-of-the range software and IT systems hasprevented their company buying best-in-class businessapplications. Almost 40% of MDs, CEOs & owners in thesample agree with this, as do 35% of finance professionals.One of the reported benefits of cloud computing is thelow total cost of ownership (TCO), and indeed, 57% ofrespondents agree that cloud computing allows accessto top-quality business applications and this risesto 65% for companies that are currently using cloudapps. It seems that MDs, CEOs & owners and financeprofessionals are already sold on this concept, with 67%and 59% respectively, agreeing over this benefit of cloudcomputing.Around the world, this opinion is also especiallywidespread in the APAC region (69%), but also in Spain(68%), Russia (70%), China (85%) and Singapore (66%).Cloud adoption levels:Use of cloud applications:The research shows that, overall, 71% of these largeorganisations around the world use cloud applications[Chart 1]. However, levels of cloud adoption varysignificantly across the countries, with the highest levelsfound in the APAC region (85%), and specifically China(92%) and Singapore (94%), but these front runners arefollowed by the UK (78%), France (79%), Germany (83%)and Italy (80%).In contrast, fewer companies in the UAE (49%), Turkey(38%) and Hungary (36%) have adopted the use of cloudapplications.However, there is much more uniformity across theindustry sectors, with adoption levels rising from 55%for the public & not-for-profit sector to 80% for thetelecoms, high tech & communications sector, but manysectors have adoption levels of between 70-75%. Theresearch also shows that cloud applications are used by alldepartments across the organisation and 53% of financedepartments use them, as do 57% of HR, 54% of those insales, marketing & customer services / CRM roles and 75%of MDs, CEOs & owners.Executive Summary
  3. 3. © Dynamic Markets Limited 2013Cloud for Business Managers: the Good, the Bad and the Ugly2Motivations:Among those whose departments use cloud apps, 76%say their motivation was to have a quick way to get thesoftware they wanted: this includes 53% who saw it as ashortcut to getting what the department needed, 31%who saw it as a way of avoiding the queue for the ITdepartment’s time and another 31% who say it was a wayof jumping the queue of IT projects the IT departmenthad lined up.Also, 47% took on cloud apps to get access to whatthey believed to be more appropriate software for theirdepartment: including 35% who adopted it because theyfelt the existing software and systems in place were notentirely appropriate to their department’s needs and 22%who felt the IT department was not helping to move theirarea of the business forward.Across the different departments, supply chain managers,MDs, CEOs & owners, finance professionals and those inrisk / compliance relate to more of these issues. The sameis true for the more senior respondents in the sample(above senior manager level), and this group has beenespecially motivated by the prospect of jumping thequeues for the IT department’s attention.Problems with the cloud:Staff downtime:Despite these high adoption levels, and the initialaspirations of departmental heads, the research revealsproblems exist with the approach to cloud computingthese companies have taken. Problems have includedstaff downtime and 54% of people in companies usingcloud apps say their department has experienced thisin the last 6 months, where people have been unable toperform their jobs properly due to problems associatedwith cloud applications not being integrated properlyacross the company. Among those who cited a figure, theaverage number of downtime incidents during the last 6months is 11 per department.From a statistical point of view, all departments across theorganisation have been equally affected, but the highestaverage number of incidences occurs in marketing, PR &communications (23) and in HR (35), while finance saysthis has happened to them 16 times on average duringthis relatively short time.Interestingly, the research demonstrates that cloudapp integration problems cause staff downtime indepartments that do not even use cloud apps; indeed,those who say other departments but not theirs useChart 1: Adoption of cloud applications around the world5457693358652038482226574881825670424151010561648668220161612222616413019465418267418168655144101411161011812285961214101611141511 6663151266474440 20 40 60 80 100Whole sampleUKFranceGermanyNordicsSpainItalyUAESouth AfricaRussiaTurkeyHungaryUSAAustraliaChinaSingaporeIndiaBrazil% of sampleYour department and other departments use cloud applicationsOther departments use cloud apps, but not your departmentYour department uses cloud apps, but not other departmentsNone of the departments use cloud appsDont know
  4. 4. © Dynamic Markets Limited 2013Cloud for Business Managers: the Good, the Bad and the Ugly3cloud apps have the highest average (40) figure for suchdowntime incidents.The problem has been especially bad in the LATAMregion, whereas fewer say this has happened in NorthAmerica, but on a country level, more in the UK, France,Germany, South Africa, Singapore, India and Brazil haveencountered this problem.Missed project deadlines:In addition to this staff downtime, 54% of companiesthat use cloud apps say project deadlines in theircompany have been missed in the last 6 months due toa lack of cloud data being shared effectively around theorganisation. On average, this has happened 9 timesper company in the space of just six months. Awarenessof this problem is high across all departments and MDs,CEOs & owners seem the most aware, with more of themciting a figure and fewer admitting ignorance on thesubject.Around the world, LATAM and APAC lead in terms ofmissing project deadlines, especially in Singapore, Indiaand Brazil, whereas fewer say this has happened in theNordics, Spain, Turkey, Hungary and the USA.Cloud falling short:The ability to innovate quickly is a well-publicised andstrong selling point for cloud computing; however, 75%of companies that use cloud applications say their abilityto innovate using their cloud apps has been hindered insome way [Chart 2].The research shows that the main hindrance is beingunable to integrate the cloud app with other softwareowned by the company (36%) or with other cloud apps(26%), and together this means 53% have seen innovationhindered by at least one of these integration issues. Aninability to integrate has hindered innovation more inthe APAC region (65%) and specifically in China (63%),Singapore (70%) and India (78%), and it has also affectedIntegration problems causestaff downtime in departmentsthat do not even use cloudappsChart 2: Factors hindering innovation when using cloud applications3334223329302648323727282726831187169852661021242419211918281611201944685155135533272531272327172826 3637353335323726403940330 20 40 60 80 100 120 140Whole sampleMD, CEO, ownerR&DSales / commerce / e-commerceMarketing, PR or communicationsCustomer services, CRMFinanceHuman resourcesSupply chain managementRisk / complianceProduction / operations / logisticsSales, marketing & CS / CRM% of sample whose organisations use cloud appsBeing unable to customise the cloud app to your specific company needsBeing unable to integrate the cloud app with other cloud appsBeing unable to integrate the cloud app with other software owned by the companyOtherNothingDont know
  5. 5. © Dynamic Markets Limited 2013Cloud for Business Managers: the Good, the Bad and the Ugly4more companies with international offices (60%).In addition, 83% of people say they have been preventedfrom getting the best out of the cloud applications theirdepartment uses for one reason or another and thisapplies across all the different departments. Once again,26% blame poor integration with other software, andmore people in the APAC region (34%) feel this way, as doa high proportion of those in China (36%), but figures arethe same or even higher for France (36%), South Africa(38%) and India (41%).Another problem associated with some cloud apps on themarket is their inflexibility, and the research shows that33% of cloud users say being unable to customise thecloud app to their specific company needs has hinderedtheir ability to innovate [Chart 2]. Once again, China,Singapore and India have suffered more in this respect.Functionality of cloud apps is another area ofdisappointment for cloud app users and 1 in 5 (20%)thinks their apps do not have the functionality they wereexpecting which has prevented them from getting thebest out of their cloud applications.Apps not usable on mobile devices:No software company today can ignore mobile, especiallywhen it comes to business applications. Yet, 20% ofcloud app users complain that the apps they have are notusable on mobile devices, preventing them getting thebest out of them. The EMEA region (23%) is especiallydisappointed by this aspect of their cloud apps, comparedto other regions, but India (44%) really stands out in thisrespect.Across the departments, sales professionals are alsoespecially disappointed with their cloud apps not beingusable on mobile devices (30%), and this is a group whowill tend to be working out of the office more than someof their colleagues.Abandoned cloud apps:Such integration issues and associated problems have led1 in 2 current cloud adopters (48%) to abandon the useof at least 1 cloud app in the last 3 years. Indeed, most ofthese have abandoned 3 different cloud apps during thistime (i.e. roughly 1 a year).Such cloud app abandonment has been especiallycommonplace in Singapore, India and Brazil, but leastcommon in Spain. In fact, respondents across all thedifferent departments report that their company hasabandoned the use of a particular cloud app in the last 3years and MDs, CEOs & owners are among the most awareof this type of behaviour.Importance of integration:Getting the full benefits:In light of all these problems, it is not surprising to findthat 81% of companies think it is important that cloudapplications are fully integrated with each other and withother software in the organisation in order to be able toreap the full benefits of cloud computing [Chart 3]. Thisfigure rises to 88% for those organisations currently usingcloud apps, and even 65% of those who do not currentlyuse cloud apps agree. Indeed, the more departments inan organisation that use cloud apps, the more the seniormanagers there believe integration is essential.Companies in the LATAM region feel especially stronglyabout this issue, as do more people in the UAE, SouthAfrica, Hungary, India and Brazil. While respondents acrossall departments think such integration is important, moreMDs, CEOs & owners, finance professionals and those inproduction / operations / logistics think integration isessential.For those in sales, marketing & customer services / CRMroles, integration is key to how they see the future, with50% thinking data must be easily shared across all channelsof communication and across various departments andbusiness units in order to deliver a next-generationcustomer experience. Furthermore, this opinion isespecially common among those who deal with customersas part of their job (56%), as well as among those who arecurrently using cloud apps (52%).24 / 7 access to business applications froma mobile:Among the whole sample, 89% think it is important to theiroverall business strategy to be able to provide 24 / 7 accessto core business systems to employees via their mobiledevices. 17% go as far as saying this is critical, and another45% describe it as very important.Respondents across all four territories think it is important,especially in LATAM and North America, where moredescribe it as critical. At a country level, this feeling isespecially pronounced in Spain, Italy, the UAE, SouthAfrica, Russia, Turkey, China, Singapore, India and Brazil.At a departmental level, all respondents agree that thisis important, but more MDs, CEOs & owners believe it iscritical.In addition, 83% of respondents think it is important forall senior managers to be able to access multiple businesscloud apps on their mobile devices simultaneously wherethe apps can talk to each other and integrate business dataand information from app to app.Companies have abandonedroughly 1 cloud app a year dueto integration problems
  6. 6. © Dynamic Markets Limited 2013Cloud for Business Managers: the Good, the Bad and the Ugly5Again, as would be expected, more respondents whoseorganisations are currently using cloud apps think it isimportant (91%), compared to those who do not currentlyuse cloud apps (66%), but the latter figure is also veryhigh. Also, the more departments that use cloud appsin an organisation, the more respondents there believeit is essential for senior managers to be able to accessmultiple business cloud apps on their mobile devicessimultaneously.Across the regions, more respondents in LATAM describethis type of access to cloud data as essential, as do thosein South Africa, India and Brazil. While all these seniordecision makers agree it is important, once again moreMDs, CEOs & owners describe this aspect of mobile cloudworking as essential.Cloud strategies in place:Across the whole sample, irrespective of their cloudadoption status, 53% of organisations have an overallcloud strategy aligned with the strategic direction of thebusiness that has been discussed and approved at CEO /Board level. Perhaps not surprisingly, more of those whocurrently use cloud apps have a formal cloud strategy inplace - however, this only applies to 67% of this group.What is interesting is that 17% of those who do notcurrently use cloud apps also have a formal cloud strategyin place. Also, the prevalence of such formal strategiesis higher in companies with multiple departments usingcloud apps, rather than just a single department.Across the regions, cloud strategies are especiallycommon in APAC (71%), LATAM (66%) and North America(54%), but least common in EMEA (46%), although theyare common in Italy (65%), along with China (86%),Singapore (64%), India (74%) and Brazil (66%). In contrast,they are least common in the Nordics (32%), the UAE(33%), Turkey (26%) and Hungary (16%), where the cloudadoption levels are lower.Integration levels:Access to cloud data:As might be expected, almost all companies shareinformation derived from cloud apps betweendepartments. The good news is that 50% of respondentsclaim to have integrated cloud apps, where they areable to access cloud data in other departments directlyfrom within the business application used by their owndepartment, but this means roughly 1 in 2 have no suchcapability. However, among departments who do NOTuse cloud apps themselves only 23% have this level ofintegration.China also stands out from all the other countries inthat 75% there say they have this type of integrationacross their departments. However, this observationholds the key, because as already discussed above, theresearch demonstrates that cloud adopters have hadlots of problems due to poor integration / visibility andChart 3: Importance of integrating cloud applications2834212418322428253321625553965167881361381127535354555153564856 11119108812188137100 20 40 60 80 100Whole sampleMD, CEO, ownerR&DSales / commerce / e-commerceMarketing, PR or communicationsCustomer services, CRMFinanceHuman resourcesSupply chain managementRisk / complianceProduction / operations / logisticsSales, marketing & CS / CRM% of sampleEssential Important Not at all important Dont know
  7. 7. © Dynamic Markets Limited 2013Cloud for Business Managers: the Good, the Bad and the Ugly6China is among the countries that have suffered the mostfrom such problems; thus it is surprising to find sucha high percentage saying they have integrated cloudapplications.However, within the detail of the research, it shows thatjust as many of those who claim to have integrated cloudapps have suffered from staff downtime and missedproject deadlines in the last 6 months, compared tothose without access to integrated cloud apps. Oneinterpretation of this fact is that the integration across thecompany is only partial for some apps / departments.In support of this theory, 31% who claim to haveintegrated apps also say poor integration has preventedtheir company from getting the best out of the cloudapps they use. Also, 57% of this group also report thattheir ability to innovate using their cloud applications hasbeen hindered by integration issues.The research also shows that Excel spreadsheets areused to share cloud data / information in a significantproportion of companies within each country (28-70%),with the highest figure actually being for China whereintegration levels are supposedly significantly higher thanelsewhere (75%). In fact, just 11% of respondents in ChinaONLY access cloud data in other departments directlyfrom within the business applications used by their owndepartment.Integration attempts:Attempts to integrate:With all these integration problems, it is not surprisingto find that 68% of cloud adopters have attempted tointegrate their cloud apps with other cloud apps and / orCloud app integration acrossthe company is only partial forsome apps / departmentsChart 4: Issues associated with integration attempts2935313420272522334425252423313828205035363868504745145192571422181019201310119141461431102733353531323030222322252424152931241281564201738201414791426225635236413535393127504438171311442017482818151818110 20 40 60 80 100 120 140 160 180Whole sampleUKFranceGermanyNordicsSpainItalyUAE*South Africa*RussiaTurkey*Hungary*USAAustralia*ChinaSingaporeIndiaBrazil% of sample whose organisations use cloud apps and have attempted integrationThey were not anticipated when the company first started using the cloud appsThey were only partially successfulThey were completely unsuccessfulThey put the company off using cloud appsThey were a headache for the IT departmentNone of theseDont know*Some country sub-sample sizes are too small to be included in the comparative analysis. The data can be used in isolation but comparisonsbetween countries are unreliable.
  8. 8. © Dynamic Markets Limited 2013Cloud for Business Managers: the Good, the Bad and the Ugly7software and systems used by the company. Yet, almost 1in 3 companies (29%) that has attempted integration saysthis activity was not anticipated when they first startedusing cloud apps [Chart 4].Nevertheless, integration attempts have been morecommon in the APAC region, compared to in EMEAand North America, and they have also been verycommonplace in the UAE, China, Singapore, India andBrazil. Companies with international offices are morelikely to have gone down this route, and where multipledepartments use cloud apps, more of these companieshave tried to integrate the cloud apps they use.Failed attempts:Among those who have attempted cloud app integration,86% encountered negatives along the way. Alarmingly,41% say their integration attempts were only partiallysuccessful and 18% say some were completelyunsuccessful - indeed 55% of companies that tried did nothave complete success with their integration attempts.Indeed, it is also interesting to note that just over 1 in 2 ofthose who claim to have integration says attempts wereeither partially or completely unsuccessful.Across the world, significantly more respondents in APACsay the attempts were only partially successful (56%), andfigures are very high for China (68%); this goes some wayto explaining the fact that this country claims to havehigh integration levels, yet they still rely on Excel andother means of sharing cloud data and have had lots ofintegration-related problems. The EMEA region is lessfortunate and more companies there report that theirintegration attempts were completely unsuccessful (23%),especially in Spain and Russia.27% of companies who have attempted integration saythe activity became a headache for the IT department,and this applies to more companies in EMEA, especiallyin the UK (33%), France (35%) and Germany (35%),compared to in China (15%). However, only 14% ofrespondents say the company was put off using cloudapps due to the integration attempts, but India stands outin this respect, where 31% report this has occurred.Cost of integration attempts:What has the cost of this band-aid cloud integration beento organisations? While 43% say they do not know theamount of money spent on this effort, among those whowere able to cite a figure, on average, companies haveinvested £121,857 to date, but figures rise to £8.5 millionfor one company. Proportionally more of the MDs, CEOs &owners cited a figure, as did those in finance, supply chainmanagement and risk / compliance departments, whereasthose in sales, marketing & customer services / CRM rolesare generally more ignorant on this subject.What is alarming is that the amounts of money spenton this task vary across the sample, but the cost ofintegration has been especially high in China where morepeople claim to have integrated cloud apps. Indeed,those who now claim to have at least some degree ofintegration of their cloud apps had to spend considerablymore on integration than those whose integrationattempts were not successful; in other words, the moreyou spend on integration, the more successful it is.However, despite all the money spent in China, many areleft with only partial integration.Skilled staff?Usability issues:When it comes to how user-friendly cloud apps are, theresearch shows that a significant proportion leaves roomfor improvement in this respect. In fact, 43% of thoseusing cloud apps have encountered usability issues,including 23% who say staff in the department do notfind it easy to use the apps, and another 27% who saystaff do not have the right skills to get the best out of theapps they are using. Such problems can only be madeworse by the integration issue and by changing softwareso frequently due to cloud app abandonment.Such usability issues are especially common in the APACregion (56%), and in Singapore (61%) and India (63%).Across the departments, those in risk / compliance rolesstand out with 61% complaining of usability issues, as do41% of finance professionals, 41% of HR and 39% of thosein sales, marketing & customer services / CRM roles.Reliance on IT:Ironically, one of the key motivations for adopting cloudapplications was to avoid having to heavily involve andbe dependent on IT staff. However, 30% of cloud usershave found that, in practice, they have had to do justthat and this group says this issue has prevented them1 in 3 companies that hasattempted integration did notanticipate this need when theyfirst started using cloud appsThe more a company spendson integration, the moresuccessful the integrationattempt is
  9. 9. © Dynamic Markets Limited 2013Cloud for Business Managers: the Good, the Bad and the Ugly8from getting the best out of the cloud applications theirdepartment uses.Indeed, more of those who have attempted integration ofcloud apps (34%) say they have had to rely on IT for helpwith their cloud apps. APAC (40%) has been especiallyreliant on IT to help with the apps, as has China (45%).Compliance:Cloud data breaches:Security of cloud data was one of the biggest concernsabout cloud computing and much has been talked aboutthis issue over the last few years. However, while this topicmay not be at the top of the new agenda any more, theproblem is certainly alive and kicking. The research hereshows that, in the last 12 months, 42% of respondentswhose departments use cloud apps have seen a datasecurity breach in their department associated directlywith the use of cloud applications [Chart 5]. This isequivalent to 25% of all companies around the world and35% of companies that have adopted cloud applications.No single department has escaped from such databreaches, and the problem has been especially bad inthe risk / compliance department (57%), but fewer in HR(31%) say this has occurred. Also, a staggering 43% offinance respondents say this has happened to them.Among those who cited a figure, the average number ofindividual security breaches per department is 6 a year.All regions have seen at least 1 such departmental clouddata security breach, but the problem is less pronouncedin EMEA (36%) and North America (33%), compared toAPAC (54%) and LATAM (64%); indeed, LATAM has thehighest average number of incidences of departmentalsecurity breaches (19).No single department hasescaped from cloud databreaches, and the problem hasbeen especially bad in the risk /compliance department (57%)Chart 5: Number of cloud data security breaches5713257611422442241134311231111333374413321321461132211921272428241514212127191126272926211825715274043374032373651313640382276533965 25414320 20 40 60 80 100Whole sampleMD, CEO, ownerR&DSales / commerce / e-commerceMarketing, PR or communicationsCustomer services, CRMFinanceHuman resourcesSupply chain managementRisk / complianceProduction / operations / logisticsSales, marketing & CS / CRM% of sample whose department uses cloud apps1 2 34 5 6-910+ Don’t know but this has happened Dont know if this has happenedNone
  10. 10. © Dynamic Markets Limited 2013Cloud for Business Managers: the Good, the Bad and the Ugly9Difficult compliance:It is not surprising then that, among those whosedepartments use cloud applications, 73% say havingcloud data handled externally by one or more cloudvendors makes it hard for their department to becompliant. This applies to all departments, and to77% of those in finance and to 71% of those in HR.Indeed, roughly 1 in 10 of those in finance, HR and risk /compliance thinks it extremely hard to be compliant underthese circumstances.There is a correlation between how difficult respondentsthink compliance is and the occurrence of data breaches,with more of those who have had a cloud data breachthinking the way cloud data is handled externally makes ithard for their department to be compliant.Educated cloud buyers?Yet the research shows these senior, departmental,line-of-business managers to be somewhat naive whenit comes to how the cloud industry mainly operates.Indeed, 81% of respondents were not completely awarethat many niche cloud application vendors contract out toother cloud vendors data management services, meaninga client’s cloud data is not looked after by the cloudvendor it might have a contract with. 24% had no ideathis might be the case, while 49% only suspected it - just19% were completely aware of this fact.Perhaps not surprisingly, more respondents inorganisations that currently use cloud apps are aware ofthis fact, and the more widely cloud apps are used aroundthe organisation, the more aware respondents are. Yet13% of those with a formal cloud strategy had no ideathat the industry operates in this way.It also seems that with increasing seniority of therespondent there is an increasing awareness of the clouddata service supply chain. Yet respondents across thedifferent departments demonstrate varying degrees ofignorance of this fact, and such ignorance is especiallyhigh among sales, marketing & customer services / CRMrespondents where just 10% were completely awareof this fact. In contrast, the respondents that are mostaware of this fact are the MDs, CEOs & owners, R&D, HRand supply chain managers, as well as those in risk /compliance and production / operations / logistics.The findings also show that if a department has had adata security breach in the last 12 months, people thereare more aware of how things work in the cloud industry -but even so, only 31% of those affected by a recent clouddata breach are completely aware of this fact.
  11. 11. © Dynamic Markets Limited 2013Cloud for Business Managers: the Good, the Bad and the Ugly10Methodology:This report was commissioned by Oracle and detailsquantitative research with senior decision makers in largeorganisations in 17 countries around the world (the UK,France, Germany, the Nordics, Spain, Italy, the UAE, SouthAfrica, Russia, Turkey, Hungary, the USA, Australia, China,Singapore, India and Brazil). A total of 1,355 surveys wascollected from companies with revenues of £50 million ormore. All respondents confirmed prior to interview thesize of their organisation by turnover, as well as their jobrole / department and level of seniority within it.Quotas were placed on the sampling according to the17 constituent countries covered by the survey, wheresome of the larger economies have bigger samples (100for most and 250 for the USA) and the smaller ones haveclose to 50 completed interviews [Table 1].Collectively, 76% of companies have either customers and/ or offices located in a country other than its own. 58%have customers located internationally and another 48%have offices / sites in other countries. Only 22% say noneof these international elements apply to their companyand 2% are unsure / declined to comment. Among thesesenior decision makers, 63% deal with suppliers as part oftheir job on a regular basis and 72% deal with customersin this way. Just 9% do not do either of these.The sample is made up of companies of different sizes,with 19% being very large corporations with turnoversof over £1 billion [Chart 6]. However, the sample is fairlyevenly distributed across the various turnover bands.The sample covers a wide variety of industry sectors andall the main sectors are well represented. Manufacturingcompanies are strongly represented among these largeorganisations.The sample includes respondents at a variety of levelsof seniority. Collectively, 48% are at director level orabove, including 18% who operate at C-level or VP levelor above this, and 30% who are at director level; while52% are at senior manager level. The sample includesa wide variety of line-of-business managers and all themain departments are adequately represented across thislarge sample [Chart 7]. IT professionals were deliberatelyChart 6: Company size by turnover25191619200 10 20 30 40 50 60 70 80 90 100£50-£99 million£100-£249 million£250-£499 million£500 million-£1 billionOver £1 billion% of sampleTable 1: Country sample sizesCountries: Region: Number of interviews:UKEMEA100France 101Germany 100Nordics 100Spain 50Italy 51UAE 51South Africa 50Russia 100Turkey 50Hungary 50USA North America 251AustraliaAPAC50China 101Singapore 50India 50Brazil LATAM 50
  12. 12. © Dynamic Markets Limited 2013Cloud for Business Managers: the Good, the Bad and the Ugly11excluded from the sample.The findings of the survey have been analysed andcompared according to various parameters, and whereany differences exist that are significant at a 95%confidence level and are relevant to the overall findings,they are described accordingly in this report.The interviews were conducted using a global onlinepanel between 25th March and 10th April 2013. Beforeand during the interviews, respondents were not awarethat Oracle had commissioned the research.Chart 7: Departments covered by the sample1775715108417100 10 20 30 40 50 60 70 80 90 100MD, CEO, ownerResearch & development (R&D)Sales / commerce / e-commerceMarketing, PR or communicationsCustomer services, CRMFinanceHuman resourcesSupply chain managementRisk / complianceProduction / operations / logistics% of sample
  13. 13. © Dynamic Markets Limited 2013Cloud for Business Managers: the Good, the Bad and the Ugly12Contacts:Report Author:Dr Cherry TaylorManaging DirectorDynamic Markets LimitedTel: +44 (0) 870 707 6767Email: