Bristol, UK, 6th April 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 survey designed to gauge the current 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 based in 12 countries worldwide, 377 in the UK.
The report revealed three key findings:
1). Cloud adoption rates remain steady in 2011
2). Cloud adoption among Public Sector organisations will grow in line with commercial sector
3). Enterprise applications will move to the cloud gradually over the next 10 years
Cloud adoption rates remain steady in 2011
The survey revealed that BLINC are starting to invest more in cloud technology for core back-office functions, but that growth will remain steady this year. 32 percent of all respondents believe they will spend more on cloud computing this year, and 32 percent believe they will spend at the same rate as in 2010. Only four percent expect to spend less and 31 percent expect to spend nothing on cloud computing. Almost half of respondents (334) cited that they do not currently use any cloud applications in the back-office, and another third (222) said that between one and 25 percent of their back-office functions are currently cloud based. Potential for growth in the enterprise space is significant. Six respondents of different organisational size, geography and industry cited their back-office functions to be 100 percent cloud based.
The top three perceived disadvantages of cloud computing are:
- Loss of control (51%)
- Reliance on the Internet (54%)
- Difficult to customise (38%)
The top three perceived advantages of cloud computing according to the survey are:
- Easier maintenance (62%)
- Automatic updates (42%)
- Scalability (44%)
Cloud adoption among public sector organisations will grow in line with commercial sector
Despite a current low level of cloud adoption cited among 123 public sector organisations currently and relatively little planned 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. The key perceived advantage of cloud technology according to the Government sector respondents was easier maintenance, while reliance on the Internet and loss of control were perceived as the main disadvantages.
Enterprise applications will move to the cloud gradually 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 nine percent expect applications to remain 100 percent on-premises, while eight 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 83 percent saying they expect to have a mix of on-premises and cloud technology. 377 respondents expect <50 percent of back office applications to be cloud based in 10 years compared to 312 with >50 percent.
“UNIT4 actively works with its customers to understand their changing needs and invests in the technology and platforms to meet demand from these fast-changing organisations,” said Anwen Robinson, Managing Director, UNIT4 Business Software. “Cloud adoption rates are increasing, however, the approach to adoption is a careful consideration for organisations that have significant back-office systems in place and rely on ERP to run their business. Our Independence Strategy delivers a choice of supporting architectures 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 results from UK, US, Canada, Ireland, Sweden, Benelux, France and Spain and from Germany, Hungary, 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 organizations and Coda, our best-of-class financial management software.
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.
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.
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.unit4software.co.uk, follow us on Twitter @UNIT4_Group
