Bristol, U.K., Apr 06, 2011: UNIT4 Business Software Ltd, the UK division of UNIT4, the world’s leading provider of business software for fast changing organisations, today announced the results of a customer survey designed to gauge the attitudes to cloud adoption for core back-office functions of Businesses Living IN Change (BLINC™). The survey was based on responses from 700 medium to large dynamic organisations around the world, including 123 in the public sector, 54 of which are based in the UK.
The report revealed three key findings specific to the public sector: 1). Cloud adoption growth remains steady in the public sector in 2011; 2). Back-office cloud adoption is rising at the same rate as in the commercial sector; 3). Cloud will gradually impact the public sector back-office over the next 10 years.
Cloud adoption growth remains steady in the public sector in 2011
The survey revealed that public sector organisations are starting to invest more in cloud technology for core back-office functions, although growth will remain steady in 2011. Two of the 123 public sector respondents said their back-office functions were already 100 percent cloud based. 48 percent cited that they do not use any cloud applications in the back-office, exactly the same proportion as those in the commercial sector. This year, 43 percent of public sector respondents plan no investment in cloud while 16 percent expect to increase their investment.
The top three perceived disadvantages of cloud computing among public sector respondents are:
- Reliance on the Internet (59%)
- Loss of control (47%)
- Difficult to customise (29%)
The top three perceived advantages of Cloud computing among public sector respondents are:
- Easier maintenance (53%)
- Automatic updates (39%)
- Ease of set up (39%)
Public sector back-office cloud adoption rising in line with the commercial sector Despite a low level of cloud adoption among public sector organisations currently, and most citing little investment in 2011, 25 percent estimate that cloud will account for between 25 and 50 percent of their back-office cloud applications 10 years from now, and 17 percent estimate it will be between 50 and 75 percent.
Cloud will gradually impact the public sector back-office over the next 10 years
UNIT4 asked what proportion of core back-office business applications were likely to be cloud based 10 years from now. Just eight percent expect applications to remain 100 percent on-premises, while 11 percent expect to be completely cloud based. A hybrid approach to cloud adoption appears to be the most popular model for the next 10 years at least with 81 percent saying they expect to have a mix of on-premises and cloud technology. 52 public sector respondents expect50 percent.
“There has been a lot of talk in the public sector about how it can best exploit cloud technology,” said Anwen Robinson, Managing Director of UNIT4 Business Software Ltd. “What this survey shows is that the public sector is steadily moving towards cloud computing at the same pace as the commercial sector. As with enterprises in the commercial sector, these organisations have invested heavily in significant back-office systems and will adopt cloud as it affords advantages while meeting their requirements. UNIT4 actively works with its customers in this sector to understand their changing needs and offers a choice of platforms designed to help them embrace change easily, quickly and cost-effectively at both application and deployment levels.”
About the survey
The aim of the survey was to gauge views and plans relating to Cloud Computing from medium to large organisations worldwide that typically rely heavily on back-office technology to support them. Senior level finance and IT professionals from a range of sectors completed the survey in January and February. Organisations with 50 employees up to more than 5000 are represented. View public sector results from UK, US, Canada, Ireland, Sweden, and Netherlands and from Germany, and Norway.
Cloud Computing is defined as services or software delivered over the Internet. Back-office applications listed in the survey include finance/accounting, HR, manufacturing, supply chain management, project management, CRM, data analysis/reporting, procurement, payroll and field service management.
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About UNIT4
UNIT4 is a global business software and services company aimed at helping dynamic public sector, and commercial services organisations to embrace change simply, quickly and cost effectively in a market sector it calls 'Businesses Living IN Change' (BLINC)™. The Group incorporates a number of the world’s leading change embracing software brands including Agresso Business World, our flagship ERP suite for mid-sized services intensive organisations and Coda, our best-of-class financial management software.
In the UK we focus strongly on the public sector, where we are the leading provider of ERP systems to local government and post 16 education organisations, as well as having a considerable presence in the emergency services and health sectors. We also focus strongly on professional services organisations and a range of commercial sectors including Financial Services, Retail and Media and Publishing. Overall we aim to be the UK’s foremost business software company, providing solutions that transform the delivery of public services and comprehensively support commercial organisations in their ability to adapt and prosper in rapidly changing environments.
With operations in 17 European countries, as well as 7 countries across North America, Asia Pacific and Africa and sales activities in several other countries, its revenue was €421.7 million in 2010. UNIT4 is headquartered in Sliedrecht, the Netherlands and has over 4,000 employees. It is listed on Euronext Amsterdam and is included in the Amsterdam Midcap Index (AMX). For more information on UNIT4 or any of its operating companies, please visit the website at www.unit4.com
