Emerging Markets Emerge Leaders In Cloud Computing Adoption – I

Emerging Markets Emerge Leaders In Cloud Computing Adoption – I

Emerging Markets Emerge Leaders in Cloud Computing Adoption – I

Even ignoring my love for alliterations (“emerging leaders emerge leaders”), there’s no denying that developing nations are taking to cloud computing with greater vigor than developed economies. A recent study by Indian IT consulting giant Tata Consultancy Services, a company that is doing groundbreaking work in this field (See: InstaCompute: Simple & Instant Cloud Computing) and featured prominently in an earlier article about the growth of cloud computing in India (See: Is India The Next Cloud Computing Superpower?), has revealed that companies in Latin America (LatAm) and Asia-Pacific (APAC) far outrun Europe and the US in cloud computing adaptation.

According to this study, while as many as 39% of the average LatAm company’s applications were on the cloud, with the average APAC company following at 28%, corresponding figures for the US and Europe were 19% and 12% respectively. However, all it not lost as the projected numbers for these last two in 2014 are 34% and 24% respectively. Expectedly, LatAm and APAC companies are not expected to stagnate, with the average company in both regions expected to have more than half of its applications cloud-based by 2014.

Now, the question is why are emerging markets the leaders in cloud computing adoption? Personally speaking, I believe it is due to the staying power of legacy applications in developed economies. It is difficult to argue with the logic of “if it’s working, why fix it?” Until, of course, the advantages of shifting to a more modern technology at the cost a large one-time investment outweigh the benefits of hanging on. In many ways, that would justify the use of old mainframe technologies in financial services.

This is a theme I had explored in an earlier article, drawing parallels with telecommunications. Here’s what I had written: “Ten years back, in contrast to the United States of 2000, few Indian households had a telephone  landline. However, when mobile phones appeared, Indians were quick to adopt them, thereby hurdling one step in the chart of communications progression. In fact, today there are more mobile phones in India than in the US, and it’s currently the fastest growing market in the world. What does this show? Only that with the spread of technologies, less developed countries can sometimes adopt them faster than developed economies where legacy systems can still retain dominance for years.”

Another reason may be the preponderance of smaller firms in the emerging markets (although the TCS study focused on large companies). As I had written about in an earlier article, smaller firms do see disproportionately more advantages of going on the cloud than large enterprises (See: Which Type of Businesses Benefit Most from Cloud Computing?). With smaller firms dominating such economies, the adoption rate of cloud computing is expectedly higher than say in the US where enterprises, flush with stable cash flows and set in business practices, are reluctant to embrace change.

Part II follows…

By Sourya Biswas

Sorry, comments are closed for this post.

5 Tips For Building A High Growth IT Platform

5 Tips For Building A High Growth IT Platform

5 Tips For Building a High Growth IT Platform Building and maintaining today’s enterprise computing platforms is a lot more challenging than it was in the past. The competitive and fast moving nature of business requires a corporate network capable of meeting a company’s ever changing needs and requirements. For IT, this poses difficult challenges…

You’ve Moved Your Data To The Cloud…What Now?

You’ve Moved Your Data To The Cloud…What Now?

Data To The Cloud…What Now? You’ve done the research. You’ve vetted multiple cloud solutions. You’ve chosen the right vendor. And you’ve migrated your data to the cloud. All done, right? Not so fast… While it has become a bit of a scary proposition for many organizations to put their trust in the cloud and start…

Hoarders And Data Collectors:  On The Brink Of Unmanageability

Hoarders And Data Collectors: On The Brink Of Unmanageability

Hoarders and Data Collectors In our physical world, hoarders are deemed “out of control” when they collect too much.  Surely the same analogy applies in our online world.  When providers collect realms of data from us, it seems they lose control of that too?  In the last months it’s not just the frequency of data…

The Global Rise of Cloud Computing

The Global Rise of Cloud Computing

The Global Rise of Cloud Computing Despite the rapid growth of cloud computing, the cloud still commands a small portion of overall enterprise IT spending. Estimates I’ve seen put the percentage between 5% and 10% of the slightly more than $2 trillion (not including telco) spent worldwide in 2014 on enterprise IT. Yet growth projections…

Bimodal IT Is Not The Death of Traditional IT

Bimodal IT Is Not The Death of Traditional IT

Not The Death of Traditional IT If you are a CIO, no doubt you are getting pressure from your line of business managers to provide a more agile IT environment so they can take advantage of faster, easier to use cloud applications. If you’re not providing those services, they are probably using them anyway and…

Principles For Data Protection In The Cloud In 2016

Principles For Data Protection In The Cloud In 2016

Data Protection In The Cloud 2015 ushered in the start of a data economy. As organizations amass more detailed consumer profiles they have begun realizing that data could equal or surpass the value of the products and services they sell, especially in the Internet of Things era with its constant and very personal streams of…

Are You Sure You Are Ready For The Cloud? SDI

Are You Sure You Are Ready For The Cloud? SDI

Software Defined Infrastructure Well, we have come full circle with this string of subjects; about making sure you are ready for the cloud. We have talked security, storage, access, connectivity and feasibility to name a few. Now, lets discuss SDI. What is SDI? It simply stands for “Software Defined Infrastructure”. Many people have their own…

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