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.

Comics
7 Common Cloud Security Missteps

7 Common Cloud Security Missteps

Cloud Security Missteps Cloud computing remains shrouded in mystery for the average American. The most common sentiment is, “It’s not secure.” Few realize how many cloud applications they access every day: Facebook, Gmail, Uber, Evernote, Venmo, and the list goes on and on… People flock to cloud services for convenient solutions to everyday tasks. They are so easy to start using that consumers rarely think twice about setting up an account or downloading a new…

The Security Gap: What Is Your Core Strength?

The Security Gap: What Is Your Core Strength?

The Security Gap You’re out of your mind if you think blocking access to file sharing services is filling a security gap. You’re out of your mind if you think making people jump through hoops like Citrix and VPNs to get at content is secure. You’re out of your mind if you think putting your content in the cloud is dangerous. The truth is that top tier cloud storage is more secure than most organizations’…

Three Reasons Cloud Adoption Can Close The Federal Government’s Tech Gap

Three Reasons Cloud Adoption Can Close The Federal Government’s Tech Gap

Federal Government Cloud Adoption No one has ever accused the U.S. government of being technologically savvy. Aging software, systems and processes, internal politics, restricted budgets and a cultural resistance to change have set the federal sector years behind its private sector counterparts. Data and information security concerns have also been a major contributing factor inhibiting the adoption of new technologies such as the cloud. Keeping data on-premise has long-been considered to be the more secure option;…

Write Once, Run Anywhere: The IoT Machine Learning Shift From Proprietary Technology To Data

Write Once, Run Anywhere: The IoT Machine Learning Shift From Proprietary Technology To Data

The IoT Machine Learning Shift While early artificial intelligence (AI) programs were a one-trick pony, typically only able to excel at one task, today it’s about becoming a jack of all trades. Or at least, that’s the intention. The goal is to write one program that can solve multi-variant problems without the need to be rewritten when conditions change—write once, run anywhere. Digital heavyweights—notably Amazon, Google, IBM, and Microsoft—are now open sourcing their machine learning…

Are Cloud Solutions Secure Enough Out-of-the-box?

Are Cloud Solutions Secure Enough Out-of-the-box?

Out-of-the-box Cloud Solutions Although people may argue that data is not safe in the Cloud because using cloud infrastructure requires trusting another party to look after mission critical data, cloud services actually are more secure than legacy systems. In fact, a recent study on the state of cloud security in the enterprise market revealed that 64 percent of medium and large businesses believe cloud infrastructure is more secure than legacy systems. What factors contribute to…

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 that 87 percent of respondents had faced a disruptive incident with third parties in the last two to three years.…

3 Keys To Keeping Your Online Data Accessible

3 Keys To Keeping Your Online Data Accessible

Online Data Data storage is often a real headache for businesses. Additionally, the shift to the cloud in response to storage challenges has caused security teams to struggle to reorient, leaving 49 percent of organizations doubting their experts’ ability to adapt. Even so, decision makers should not put off moving from old legacy systems to a more flexible and accessible solution — whether public or private. By putting the right system in place, businesses can…

Three Factors For Choosing Your Long-term Cloud Strategy

Three Factors For Choosing Your Long-term Cloud Strategy

Choosing Your Long-term Cloud Strategy A few weeks ago I visited the global headquarters of a large multi-national company to discuss cloud strategy with the CIO. I arrived 30 minutes early and took a tour of the area where the marketing team showcased their award winning brands. I was impressed by the digital marketing strategy and the way they were clearly leveraging the world of social, mobile analytics and cloud. So I mentioned to our…

How The CFAA Ruling Affects Individuals And Password-Sharing

How The CFAA Ruling Affects Individuals And Password-Sharing

Individuals and Password-Sharing With the 1980s came the explosion of computing. In 1980, the Commodore ushered in the advent of home computing. Time magazine declared 1982 was “The Year of the Computer.” By 1983, there were an estimated 10 million personal computers in the United States alone. As soon as computers became popular, the federal government began to legislate their use. In 1986, the Comprehensive Crime Control Act was amended to included the Computer Fraud and…