Business Transformation is the primary driver of cloud – KPMG

KPMG’s recent 2014 Cloud Survey Report (download here for free, no signup) finds that cloud usage in the enterprise is no longer primarily driven by cost but by business transformation. In 2012, it was all about Cost Efficiencies. Today, other considerations are increasingly at the forefront.

It’s about more than cost – Part I

Driving cost efficiencies (49%) is still the top use of cloud but the gap has narrowed dramatically. Mobile enablement (42%), improved alignment with customers/partners (37%) and better leveraging of data for business insights (35%) are important ways in which business are looking to use cloud computing.

Top Ways Business are Using Cloud

Mobile Enabling Employees

Truly mobile-enabling your company doesn’t just mean buying devices or instituting a BYOD policy. It means applications and services that are mobile-aware and Cloud is an essential enabler. It’s an inevitable nexus of forces: Mobile + Cloud is truly a case of 2+2=5.

Where mobile is driving most value

Cloud implementations are succeeding …

Improving business performance (73%), service automation (72%) and reducing costs (70%) are the top three success areas. Importantly, there’s a lot companies have learned since 2012 and they’re far more successful with cloud.

Successful areas of business improvement

… but there are still challenges

Data loss & privacy (53%), risk of intellectual property theft (50%), and impact on IT (49%) are major concerns. Again though, we’re dealing more with day-to-day concerns than getting-started concerns.

Most challenging areas with cloud

It’s about more than cost – Part II

Security (82%) and data privacy (81%) outpace cost (78%) as factors when selecting a cloud solution and others like functionality (76%) and integration (74%) are not far behind. With all the recent high-profile cyber-attacks, it’s clearly a hot-button issue across the enterprise. Cloud providers get this and have teams dedicated to security. Far beyond the efforts of most organizations.

Important factors in deploying cloud

The cloud’s potential is sky-high and it will inevitably impact more and more areas of every business. The best part is that cloud is reducing costs but it has also become a key enabler driving all kinds of strategic business transformations.

Download the full report here (free and no signup required).

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