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.

How To Use Big Data And Analytics To Help Consumers

How To Use Big Data And Analytics To Help Consumers

Big Data Analytics Businesses are under increasing pressure to develop data-driven solutions. The competitive advantage gained by a successful strategy can be immense. It can create new opportunities and help businesses to react to different scenarios or sudden changes in the market. But innovation and resilience are not easily achieved, and organizations always face difficult…

Destroying Cloud Data In The Age Of Data Multiplication

Destroying Cloud Data In The Age Of Data Multiplication

The Age of Data Multiplication We are surrounded by data, whether in our personal or professional lives with digital elements that are constantly being captured about us. This leads to exponentially increasing volumes of data whether from Internet-connected devices, video, cell records, customer transactions, healthcare and government records. Today, there is a growing awareness and…

SaaS Freemium Models and the Hidden Cost of Free

SaaS Freemium Models and the Hidden Cost of Free

SaaS Freemium Models We’ve all been lured into sexy “try before you buy” freemium models that provide just the right amount of functionality to get you started. Yet, it’s not quite enough to complete the job. “Getting the job done” often requires stepping up to a paid or premium version that provides more functionality, capabilities…

Is Bigger Better? Not with the Cloud on Your Side

Is Bigger Better? Not with the Cloud on Your Side

Is Bigger Better? Growing up, bigger almost always equated to better. The bigger kid hit the baseball farther, threw the ball faster, shot the hockey puck harder and usually won the fight. In school, we were taught that larger companies were better than the smaller ones. Bigger, meant better economies of scale, more market share…

Newton’s First Law and Cloud

Newton’s First Law and Cloud

Scaling the Mountain “You’re kidding me, the server went down? What are we supposed to do about launching the new website? We promised our partners that we would go live this weekend. I’ll admit its forty new pages but it’s just a website. How long before it all gets fixed?” I’ll bet you have been to this…

New Smartphones From Apple, Samsung and HTC Promise To Light Up 2016

New Smartphones From Apple, Samsung and HTC Promise To Light Up 2016

New Smartphones from Apple, Samsung and HTC (Sponsored post courtesy of Verizon Wireless) The launch of the Galaxy S7 Edge at the Mobile World Congress in Barcelona during February was the first shot in a vintage year for mobile phones. The S7 is an incredible piece of hardware, but launches from HTC and Apple later in the…

Featured Sponsored Articles
How Successful Businesses Ensure Quality Team Communication

How Successful Businesses Ensure Quality Team Communication

Quality Team Communication  (Sponsored post courtesy of Hubgets) Successful team communication and collaboration are as vital to project and overall business success as the quality of products and services an organization develops. We rely on a host of business tools to ensure appropriate customer interactions, sound product manufacturing, and smooth back-end operations. However, the interpersonal relationships…

Featured Sponsored Articles
How To Develop A Business Continuity Plan Using Internet Performance Management

How To Develop A Business Continuity Plan Using Internet Performance Management

Internet Performance Management Planning CDN Performance Series Provided By Dyn In our previous post, we laid out the problems of business continuity and Internet Performance Management in today’s online environment.  In this article, we will take a look at some of the ways you can use traffic steering capabilities to execute business continuity planning and…

Featured Sponsored Articles

CloudTweaks is recognized as one of the leading influencers in cloud computing, infosec, big data and the internet of things (IoT) information. Our goal is to continue to build our growing information portal by providing the best in-depth articles, interviews, event listings, whitepapers, infographics and much more.

Sponsor