IBM study reveals businesses using cloud computing for competitive advantage can generate double revenue compared to their peers
Date: Tue, 10/29/2013 - 13:45 Source: IBM press department
IBM announced that organizations gaining competitive advantage through high cloud adoption are reporting almost double the revenue growth and nearly 2.5 times higher gross profit growth than peer companies that are more cautious about cloud computing, from a recent survey conducted with more than 800 business decision makers and users worldwide.
IBM's survey also revealed that the cloud’s strategic importance to decision-makers, such as CEOs, CMOs, finance, HR and procurement executives, is poised to double from 34 percent to 72 percent – vaulting over their IT counterparts at 58 percent.
The survey found that one out of five organizations is ahead of the curve on cloud adoption and achieving competitive advantage – not just cutting costs and driving efficiency – through cloud computing.
These leading organizations see the benefits of using the cloud -- they are 170 percent more likely to use analytics extensively via cloud to derive insights for better business decisions.
In addition, IBM’s research found that leading organizations are looking to the cloud to differentiate them from their competitors. In fact, they are 136 percent more likely to use cloud to reinvent customer relationships.
Compared to more cautious cloud adopters, leading organizations are:
• 117 percent more likely to use cloud to enable data-driven decisions
• 79 percent more likely to rely on cloud to locate and leverage expertise anywhere in the ecosystem for deeper collaboration
• 66 percent are using cloud to strengthen the relationship between IT and lines of business and the majority are using cloud to integrate and apply mobile, social, analytics and big data technologies.
The study findings suggest that business and technology leaders should prioritize cloud investments in areas where they can differentiate from the competition.
Today's cloud marketplace
By 2017, the public cloud services market is predicted to exceed $244 billion. Companies are looking to capitalize on this fast growing opportunity around the cloud for business transformation. IBM has invested more than $6 billion in more than a dozen acquisitions since 2007 designed to accelerate its cloud initiatives, including 10 since 2010.
The cloud has transformed how different industries are solving their unique challenges. For example, IBM's cloud platform is currently supporting some of the largest infrastructure projects in the world.
• The Waterfront Toronto revitalization project, which gives local residents an interactive and open cloud-based portal to view city-wide data on mobile or desktop devices. The IBM cloud platform allows residents to keep a pulse of events, news and activity across the growing community because it can integrate multiple data sources and create real-time visualizations of information.
• The US General Services Administration uses IBM cloud computing to transform its supply chain through the intelligent automation of inventory management for the federal government's entire procurement function.
• IBM's work with United States Tennis Association (USTA) has combined analytics, cloud computing, mobile and social technologies for the 2013 US Open tennis fans. This past fall, IBM's cloud brought fans closer to the action on the courts while delivering real-time insights into match data that go beyond basic scores and stats.
About the study
To get a global snapshot of how organizations are using cloud computing, the IBM Center for Applied Insights conducted a survey of 802 cloud decision makers and users. Forty percent are C-level executives (28 percent CIOs and 12 percent other C-suite roles). Evenly split between business and IT functions, participants span 24 industries and 13 countries, including both growth and mature markets. They work in enterprises of varying sizes – 21 percent with 10,000 or more employees and, at the other end of the spectrum, 26 percent with less than 1,000 employees.