Cloud Computing Adoption Can Generate EUR 763 Billion in Europe by 2015, Cloud Dividend Report

Cloud Computing Adoption Can Generate EUR 763 Billion in Europe by 2015, Cloud Dividend Report

Cloud-based solutions and adoption of cloud computing could generate up to EUR 763 billion in economic benefit in the five largest European economies by 2015, part two of EMC Corporation’s 2011 Cloud Dividend report conducted by the Centre for Economics and Business Research (CEBR) revealed. The report studied possible economic benefits of cloud computing adoption and deployment of cloud-based solutions in France, Germany, Italy, Spain and the United Kingdom. Distribution, retail and hotels sectors alone could generate EUR 233 billion in value in the next four years, according to the report.

The study examines the benefits generated by the three most widespread cloud computing models; namely, public cloud, which is controlled by a cloud provider; private cloud, which is controlled internally by an organization’s own IT team as well as hybrid cloud, which is a combination of the two.

Distribution, retail and hotels are expected to generate EUR 233 billion by 2015, mostly from accelerated business creation, business development and cost savings. The sum represents some 31 percent of the total economic benefit forecast by CEBR while 77 percent of the overall value is expected to be generated by adoption of private and hybrid cloud solutions.

France, Italy, Spain and the UK saw their distribution, retail and hotels sectors benefit most from the Cloud, while banking, financial & business services sectors are leading the pack in Germany, reporting IT capital expenditure (CapEx) savings of EUR 18.1 billion.

Over 800,000 new jobs could be created in the government sector within the region, the report said. Adoption of cloud computing solutions could create up to 2.4 million new jobs by 2015, according to the Cloud Dividend 2011 report.

Cumulative Economic Benefits 2010 – 2015

Industry Sectors

EMEA (EUR mil)

Jobs (‘000s)

Distribution, retail and hotels

233418

355

Banking, financial and business services

183566

207

Government, education and health

112539

801

Manufacturing

98504

514

Other sectors¹

135271

519

Total

763297

2396

Source: Cloud Dividend Report 2011

Data show obvious benefits offered by adoption of cloud computing solutions across various economic sectors in the five countries. “Distribution, retail and hotels is projected to generate the largest returns from cloud deployments despite decreased spending power and commodity price pressures. Banking, financial & business services is also one of the stronger sectors, in terms of the resulting benefits, but lower relative IT CapEx-to-labour ratios in this sector mean its share of the total benefits in EMEA isn’t proportional to the sector’s powerful contribution to overall GDP. One of the key drivers for economic recovery will be job creation and, interestingly, the public sector should gain most here with up to 800,000 positions expected to result from the adoption of cloud services,” Oliver Hogan, CEBR’s managing economist, commented in a press release.

Apart from distribution, retail and hotels sector, the banking, financial & business services sector could potentially aggregate EUR 183 billion in economic benefits by 2015. According to the report, between 60 and 80 percent of all enterprises in this segment utilize cloud solutions, with 76 percent of them employing private and hybrid cloud models.

Government, education and health sector can benefit most from cloud computing in terms of job creation, with some 800,000 new jobs predicted. The net total cost savings could reach up to EUR 14.5 billion by 2015 with levels of private and hybrid cloud adoption being predicted.

Manufacturing and SMEs can achieve substantial productivity gains through faster time-to-market and IT scalability resulting in EUR 11.4 billion of potential benefit in the UK, the report said. Other sectors to benefit from adoption of cloud computing solutions include agriculture, forestry & fishing, construction, transport, storage & communications and energy & utilities. The energy & utilities sector is forecast to witness EUR 14.1 billion in benefits from the adoption of cloud computing, with private cloud models dominating the sector due to strict government regulations related to data and information security in this industry.

Country positions overall 2010 – 2015

Country

Total economic benefit (EUR mill)

Jobs (‘000s)

Germany

221239

789

France

162749

469

Italy

150770

456

UK

117989

289

Spain

110550

392

Total

763297

2396

Source: Cloud Dividend Report 2011

Commenting on the report’s findings EMC Consulting’s Vice President EMEA, Sandra Hamilton, said on the company’s website, “The adoption of cloud technologies and services across EMEA brings with it the mission-critical agility that businesses need to survive and thrive in the current economic climate. A hybrid cloud model – a dynamic combination of internal and external resources where a private cloud serves as the gateway and control mechanism for public cloud services – provides organizations with the ultimate flexibility. However, a critical element in businesses achieving the competitive advantage presented by cloud computing lies in the successful visualization of mission-critical and revenue-generating applications. That will be key to realizing the full cloud dividend – and to deriving the powerful growth and productivity gains which, as the new report shows, can lead to meaningful job creation across the EMEA region.”

By Kiril Kirilov

Sorry, comments are closed for this post.

Comic
SWIFT Says Bank Hacks Set To Increase

SWIFT Says Bank Hacks Set To Increase

Bank Hacks Set To Increase SWIFT, whose messaging network is used by banks to send payment instructions worth trillions of dollars each day, said three clients were hacked over the summer and cyber attacks on banks are set to increase. The theft of $81 million in February from Bangladesh’s central bank using SWIFT messages rocked…

Security: Avoiding A Hatton Garden-Style Data Center Heist

Security: Avoiding A Hatton Garden-Style Data Center Heist

Data Center Protection In April 2015, one of the world’s biggest jewelry heists occurred at the Hatton Garden Safe Deposit Company in London. Posing as workmen, the criminals entered the building through a lift shaft and cut through a 50cm-thick concrete wall with an industrial power drill. Once inside, the criminals had free and unlimited…

The Lighter Side Of The Cloud – Data Merge

The Lighter Side Of The Cloud – Data Merge

By Christian Mirra Please feel free to share our comics via social media networks such as Twitter, Facebook, LinkedIn, Instagram, Pinterest. Clear attribution (Twitter example: via @cloudtweaks) to our original comic sources is greatly appreciated.

The Rise Of Threat Intelligence Sharing

The Rise Of Threat Intelligence Sharing

Threat Intelligence Sharing  Security has been discussed often on CloudTweaks and for good reason. It is one of the most sought after topics of information in the technology industry.  It is virtually impossible to wake up and not read a headline that involves the words “Breached, Hacked, Compromised or Extorted (Ransomware)“. Included (below) is an…

Moving Your Email To The Cloud? Beware Of Unintentional Data Spoliation!

Moving Your Email To The Cloud? Beware Of Unintentional Data Spoliation!

Cloud Email Migration In today’s litigious society, preserving your company’s data is a must if you (and your legal team) want to avoid hefty fines for data spoliation. But what about when you move to the cloud? Of course, you’ve probably thought of this already. You’ll have a migration strategy in place and you’ll carefully…

Using Cloud Technology In The Education Industry

Using Cloud Technology In The Education Industry

Education Tech and the Cloud Arguably one of society’s most important functions, teaching can still seem antiquated at times. Many schools still function similarly to how they did five or 10 years ago, which is surprising considering the amount of technical innovation we’ve seen in the past decade. Education is an industry ripe for innovation…

Connecting With Customers In The Cloud

Connecting With Customers In The Cloud

Customers in the Cloud Global enterprises in every industry are increasingly turning to cloud-based innovators like Salesforce, ServiceNow, WorkDay and Aria, to handle critical systems like billing, IT services, HCM and CRM. One need look no further than Salesforce’s and Amazon’s most recent earnings report, to see this indeed is not a passing fad, but…

Ending The Great Enterprise Disconnect

Ending The Great Enterprise Disconnect

Five Requirements for Supporting a Connected Workforce It used to be that enterprises dictated how workers spent their day: stuck in a cubicle, tied to an enterprise-mandated computer, an enterprise-mandated desk phone with mysterious buttons, and perhaps an enterprise-mandated mobile phone if they traveled. All that is history. Today, a modern workforce is dictating how…

Four Recurring Revenue Imperatives

Four Recurring Revenue Imperatives

Revenue Imperatives “Follow the money” is always a good piece of advice, but in today’s recurring revenue-driven market, “follow the customer” may be more powerful. Two recurring revenue imperatives highlight the importance of responding to, and cherishing customer interactions. Technology and competitive advantage influence the final two. If you’re part of the movement towards recurring…

Despite Record Breaches, Secure Third Party Access Still Not An IT Priority

Despite Record Breaches, Secure Third Party Access Still Not An IT Priority

Secure Third Party Access Still Not An IT Priority Research has revealed that third parties cause 63 percent of all data breaches. From HVAC contractors, to IT consultants, to supply chain analysts and beyond, the threats posed by third parties are real and growing. Deloitte, in its Global Survey 2016 of third party risk, reported…

Five Signs The Internet of Things Is About To Explode

Five Signs The Internet of Things Is About To Explode

The Internet of Things Is About To Explode By 2020, Gartner estimates that the Internet of Things (IoT) will generate incremental revenue exceeding $300 billion worldwide. It’s an astoundingly large figure given that the sector barely existed three years ago. We are now rapidly evolving toward a world in which just about everything will become…

Shadow IT To Remain A Focus For Both Cloud Vendors And CIOs

Shadow IT To Remain A Focus For Both Cloud Vendors And CIOs

Shadow IT To Remain A Focus Shadow IT, a phenomenon defined as building internal IT systems without the official organizational approval has been a growing concern for CIOs over the last few years. In 2015, it climbed to the top of the list of the emerging IT threats, with as much as 83% CIOs reporting…

M2M, IoT and Wearable Technology: Where To Next?

M2M, IoT and Wearable Technology: Where To Next?

M2M, IoT and Wearable Technology Profiling 600 companies and including 553 supporting tables and figures, recent reports into the M2M, IoT and Wearable Technology ecosystems forecast opportunities, challenges, strategies, and industry verticals for the sectors from 2015 to 2030. With many service providers looking for new ways to fit wearable technology with their M2M offerings…

Cloud Infographic – The Internet Of Things In 2020

Cloud Infographic – The Internet Of Things In 2020

The Internet Of Things In 2020 The growing interest in the Internet of Things is amongst us and there is much discussion. Attached is an archived but still relevant infographic by Intel which has produced a memorizing snapshot at how the number of connected devices have exploded since the birth of the Internet and PC.…

Are Women Discriminated Against In The Tech Sector?

Are Women Discriminated Against In The Tech Sector?

Women Discriminated Against In Tech Sector It is no secret that the tech industry is considered sexist since most women are paid less than men; there are considerably fewer women in tech jobs; and generally men get promoted above women. Yet the irony is twofold. Firstly, there is an enormous demand for employees with skills…

Disaster Recovery And The Cloud

Disaster Recovery And The Cloud

Disaster Recovery And The Cloud One of the least considered benefits of cloud computing in the average small or mid-sized business manager’s mind is the aspect of disaster recovery. Part of the reason for this is that so few small and mid-size businesses have ever contemplated the impact of a major disaster on their IT…