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IBM predicts increase in strategic importance of cloud

Anuradha Shukla | Oct. 28, 2013
Poised to double from 34% to 72% by 2016, according to a global survey.

IBM has predicted strategic importance of cloud to increase from 34 percent to 72 percent till 2016 in a newly released survey conducted with more than 800 business decision makers and users worldwide.

The number of organisations that gained competitive advantage through high cloud adoption almost doubled the revenue growth. These companies recorded about 2.5 times higher gross profit growth than enterprises that are more hesitant to adopt cloud computing.

One out of five organisations is achieving competitive advantage through cloud computing and 170 percent more likely to use analytics extensively via cloud to gain insights to make better business decisions. 

Leading organisations are 136 percent more likely to use cloud to reinvent customer relationships.

“Businesses that capitalise on cloud capabilities can go well beyond launching a product to actually expanding their business model and targeting new markets and new buyers,” said Mike Grandinetti, managing director at Southboro Capital. “The cloud is making the start-up business model more accessible to people with smaller budgets while transforming the level of productivity and accelerating innovation -- key for VCs working to decide where to place their next big bets.” 

Data-driven decisions 

117 percent of leading organisations are more likely to use cloud to enable data-driven decisions as compared to enterprises that are more cautious about cloud adoption.

79 percent of these organisations are more likely to depend on cloud to locate and leverage expertise anywhere in the ecosystem for better collaboration. 

Cloud enables 66 percent of leading organisations to strengthen the relationship between IT and lines of business.

IBM advises business and technology leaders to prioritise cloud investments in areas where they can differentiate from the competition. The company has partnered with over 100 academic institutions from around the world to collaborate on technology curricula for students and professionals to gain the latest skills in cloud computing.

"By working with IBM, we’re not only teaching students about the cloud, we’re inspiring them to come up with more ideas to leverage the cloud for everything from their daily personal computing needs to jumpstarting their entrepreneurial dreams to coming up with innovative ideas for their future employers,” said Dr. Dave Garrison at St. Mary's University of Minnesota.

 

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