A survey of 200 Irish IT decision makers about cloud computing, April 2013. Research conducted on behalf of Microsoft by Amárach Research. The 2012 report is available here: http://www.slideshare.net/amarach/microsoft-cloud-computing-research-april-2012

1. S13-068
Microsoft Cloud Index
2013 Report

2. SECTION 1:
Current Challenges &
Future Prospects

3. 3
Main External Challenges for Next 12 Months
5-50 employees (22%)
51-250 employees (23%)
Public sector (44%)
5-50 employees (12%)
Public sector (12%)
5-50 employees (10%)
Public sector (14%)
Public sector (10%)
51-250 employees (7%)
New business development/sales
The wider Irish economy
Financial challenges
Slow down in business
The global economy
Company costs
Strong competition
IT infrastructure insufficiency
New regulations
Price competitiveness
Insufficient services
Government budget/decisions*
* All others less than 3%
(Base: All IT decision makers - 200)
18
18
17
14
8
7
7
6
5
4
3
3
Highest Among ….%

4. 4
Main Internal Challenges for Next 12 Months
Public sector (44%)
Public sector (18%)
Public sector (14%)
Public sector (8%)
Staff levels
Cost control
Restructuring
Maintaining competence
IT development
New business development/sales
Budget
Data protection
Resources
Providing good customer services
Cash flow
Adapting to recession
Staff moral
* All others less than 3%
(Base: All IT decision makers - 200)
19
9
9
9
9
8
6
5
5
4
3
3
3
Highest Among ….%

5. 5
Revenue vs Cost Predictors – I
The outlook for the next 12 months is similar to that expressed by
IT decision makers this time last year. 17% see revenue out
growing costs while 15% expect the opposite.
(Base: All IT decision makers in private sector - 150)
17 18
13 14
38 37
7
4
15
18
Revenue will grow
faster than costs
Revenue and costs
will grow at same
rate
Revenue and costs
will remain static
Revenue will fall at
same rate as costs
Revenue will feel
faster than costs
38 37
7
4
15
18
2013 2012

6. 6
Revenue vs Cost Predictors – II
Companies with over 250 employees are most likely to see their
revenues fall faster than their costs over the next 12 months, while
prospects have improved for companies with under 250 employees.
(Base: All IT decision makers in private sector - 150)
19 17 16
13
22
4
39 37 38
7
4
8
15
7
22
Revenue will grow
faster than costs
Revenue and costs
will grow at same
rate
Revenue and costs
will remain static
Revenue will fall at
same rate as costs
Revenue will feel
faster than costs
0
7
4
8
0
15
7
22
5-50 51-250 251+
(14)
() = 2012 figures
(16) (26) (12) (16) (14) (40) (38) (31) (7) (4) (0) (23) (16) (14)

7. 7
Public Sector Budget Availability
Overall Budget
2013
%
Increase -
4 4
18 -
40
74
91
52
8 5 4
(Base: All IT decision makers in public sector - 50)
Public sector budgets are under less threat than this time last year but three
quarters still expect a decline. IT budgets are much more likely to go untouched.
IT Budget
2012
%
2013
%
Stay the same
Decrease
Don’t know
Increase
Stay the same
Decrease
Don’t know

8. SECTION 2:
Cloud Update & Attitudes to
Cloud Computing

9. 9
Cloud Computing
“Cloud computing refers
to the processing and storage of your
computer services and data, in a data centre based
away from your own premises, and providing
anywhere access at a fraction of the cost of having data
and computer services provided internally. Simply put, both
users and organisations can do more with less, by obtaining
access to more computing power whilst reducing the costs of
their IT investment.”

10. 10
Cloud Computing's Role in …..
(Base: All IT decision makers - 200)
() = 2012 figures
31%
67%
2%
%
No
Don’t know
Yes
16%
80%
4%
Getting the economy
back to growth
%
No
Don’t know
Yes
Addressing your
internal/external challenges
(77)
(15)
(8) (5)
(40)
(55)
4 in 5 say cloud computing can play a role in brining Ireland back to growth
while two thirds think it can help with their internal/external challenges.

11. 11
Heard/Read about Cloud Computing Security
Risks in the Media
43
29
39
55 54
31 29
33 31
28 26
42
28
14
18
43
29
39
31 29
33 31
28 27
42
28
14
29
39
31 29
33 31
28 27
42
28
Total 5-50 51-250 251+ Public
Sector
Yes, major concern Yes, not a major concern No, did not hear of/
read any reports
Nearly three quarters of companies heard about or read some
information about Cloud Computing. Over 4 in 10 said this was a
major concern while 3 in 10 did not see security as a major concern.
(Base: All IT decision makers - 200)

12. 12
Perceived Objective/Purpose of Cloud Computing
The smaller companies are much more likely to view Cloud Computing primarily
as an IT solution while larger companies and public sector organisations are
more likely to say it plays a role in a wider business objective.
45
56
40
39
36
48
36
54
51
54
IT
Solution
Other
Don’t
know
3 4
3 5
6 0
1 9
2 8
Total Sample
5-50 employees
51-250 employees
251+ employees
Public sector
Wider Business
Objective
(Base: All IT decision makers - 200)

13. SECTION 3:
Cloud Computing
Uptake & Experience

14. 14
Deployed Cloud
() = 2012 figures
Uptake of cloud computing is now similar across all organisations with a considerable increase
witnessed for organisations with less than 250 employees and Public Sector Organisations.
54
37
53 54 55 56
2013 2012 5-50 51-250 251+ Public
sector
(Base: All IT decision makers - 200)
Employees Employees Employees
(21) (35) (53) (29)

15. 15
Not Deployed but Considering ….
() = 2012 figures
Over half of those who have not yet deployed cloud computing are considering it for the
future. This is highest among companies with over 51 employees. Based on the previous
wave we know that 55% of those who are considering cloud will convert within 12 months.
55
51
36
69
61
45
2013 2012 5-50 51-250 251+ Public
sector
(Base: All IT decision makers - 200)
Employees Employees Employees
(38) (47) (75) (41)

16. 16
2013 Considering
(uptake factor)
Estimated level for
April 2014
Projected Cloud Growth
Based on the previous research we can apply the uptake factor (55%) to
provide a more robust model of prediction. Based on this, uptake of Cloud
Computing services could reach 68% by April 2014.
54
14
68
(Base: All IT decision makers - 200)
Current Users – Considering (uptake factor) – Estimated Level for April 2014

17. 17
Benefits of Cloud
Public sector (50%)
51-250 employees (32%)
Public sector (24%)
5-50 employees (24%)
5-50 employees (14%)
251+ employees (13%)
51-250 employees (9%)
Public Sector (8%)
Cost benefits
Mobile workforce
More efficient
Ease of use
Security
Safe space
Flexibility
Storage capability
Ease of implementation
No on site maintenance*
Other
Don’t know
* All others less than 2%
(Base: All IT decision makers - 200)
40
23
17
14
13
9
7
5
4
3
6
3
Highest Among ….%

18. 18
19 19
26
15
25
64 65 55
70
57
7 10
10 4 7
10 6 9 11 11
Cloud Computing Experience
2013
%
Exceeded expectations
(Base: All who have deployed cloud – 108)
1-in-5 of those who deployed cloud say it has exceeded their expectations, with
medium companies and Public sector organisations most likely to agree with this.
% % % %
Met expectations
Fell below expectations
Don’t know
5-50 51-250 251+
Public
Sector
Employees

19. 19
Barriers to Encourage Cloud Computing
251+ employees (76%)
5-50 employees (46%)
Public sector (46%)
Public sector (55%)
5-50 employees (25%)
Security concerns
Financial resources
Integration of legacy systems
Privacy concerns
Other IT/telecoms concerns
Availability of right IT Skills
Lack of awareness of benefits
Business ease
Other
Don’t know
57
34
32
29
22
21
17
15
5
7
Highest Among ….%
(39)
(24)
(19)
(25)
(14)
(13)
(24)
(14)
(11)
(-)
() = 2012 figures
(Base: All who have not deployed cloud – 92)

20. 20
Methods of Accelerating Adoption
Public sector (68%)
251+ employees (50%)
51-250 employees (50%)
5-50 employees (32%)
51-250 employees (31%)
Public sector (23%)
Government guidelines/standards
Additional security certifications
Training staff to increase technical cloud skills
Increase awareness of cloud offerings
Training staff to increase business cloud skills
Cloud migration framework/workshops
Cloud readiness assessment/workshops
Other
Don’t know
45
41
33
25
24
17
16
3
10
Highest Among ….%
(Base: All who have not deployed cloud – 92)

21. 21
Big Data & Cloud
(Base: All IT decision makers - 200)
26%
60%
14%
%
No
Don’t know
Yes
Engage in data analysis or
measuring big data
%
Nearly 4-in-10 organisations engage in data analysis or measure ‘big data’ –
most commonly among larger companies and Public sector organisations. 6-in-
10 of these say Cloud computing could contribute to this process.
Could cloud improve data
analytics? (N=77)
59%
39%
2%
No
Don’t know
Yes
5-50 employees
51-250 employees
251+ employees
Public sector
22
35
52
46
%

22. SECTION 4:
Microsoft Cloud
Index

23. 23
Knowledge of Cloud Computing
Public sector (6%)
Public sector (32%)
5-50 employees (10%)
5-50 employees (14%)
Aware of cloud computing but
still gathering information
Have begun to implement cloud
on 1 or 2 projects
Have investigated cloud – being
considered
Have begum to implement cloud
and expect further usage
Have implemented cloud
Fully operational on cloud
No awareness of cloud
32
22
17
11
6
5
5
Highest Among ….%
(50)
() = 2012 figures
(Base: All IT decision makers - 200)
(9)
(9)
(7)
(7)
(3)
(11)

24. 24
1 10
Q. On a scale of 1 to 10, where 1 is complete beginners status and 10 is fully
implemented, where would you locate your own organisation in terms of its
adoption of Cloud Computing?
3.2
Ireland
April 2012
3.6
Ireland
April 2013
The Microsoft/Amárach Cloud Index
The Microsoft Cloud Index has improved by 0.4 points since April 2012, supported by
the positive growth of Cloud adoption we would expect to see the index continue to
climb as more companies become familiar with Cloud Computing.

25. Trends Report
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t. twitter.com/AmarachResearch