Canadian businesses that adopt "cloud-first" mindset considered to outperform
Study finds 73 per cent of businesses report improved ability for IT to focus
on core business as a result of cloud computing
TORONTO, June 11, 2013 /CNW/ - Today, an IDC White Paper, commissioned by
TELUS, was released with the results of the second annual Enterprise Cloud
Study focused on business and IT leaders from large Canadian organizations.
According to the study, Canadian businesses are focused on improving customer
service as well as driving additional productivity and cost savings. Cloud
technology and the evolving role of the IT department are key to meeting these
goals. The study reveals that IT leaders are using hosting and cloud to drive
significant and incremental value to their businesses. As well, the majority
of forward-thinking IT leaders who integrate hosting and cloud solutions into
their IT sourcing strategy believe they outperform their peers.
The IDC white paper also shows that Canadian businesses view cloud as a
progression in IT services and that cloud users consider themselves to be
leaders in their markets — 66 per cent and 64 per cent believe that they
significantly outperform their competition in terms of revenue growth and
Further, companies with a 'cloud-first' mindset (those who view cloud as a
progression in IT services and integrate cloud into their decisions about
software, systems and better ways of doing business) are 25 per cent more
likely to view themselves to be more innovative and progressive than their
peers. These firms are also open to new technologies.
"The survey indicates that the number one priority for Canadian businesses is
improving customer service. IT leaders are realizing that moving IT
functions to the cloud can have a real impact on their bottom line and can
help them focus on their core business, including their customers," says Tony
Krueck, vice-president, Business Solutions Marketing at TELUS. "Those who have
made the move are now reaping the benefits of cloud. The IDC survey found that
an impressive 81 per cent of Canadian businesses reported lowering the cost of
IT due to cloud adoption."
Cloud security still top of mind for Canadian businesses, but enterprises
According to the IDC white paper, lack of knowledge and concerns around data
governance, particularly in organizations that lack experience with public
cloud services, continue to inhibit the growth of public cloud computing.
However, organizations that have adopted cloud have overcome data governance
challenges and are clearly benefiting. The majority of respondents said they
were able to easily overcome these challenges and that one of the top
incremental benefits of cloud was improved data compliance (73 per cent of
"If we look at the results from the 2012 TELUS IDC cloud survey, the number
one reason Canadian enterprises are fearful to step outside of their
traditional IT comfort zone is risk," says Mark Schrutt, IDC Canada's director
of services and enterprise applications. "The good news is that this year, the
majority of users said they were able to easily overcome these challenges and
that cloud actually was a catalyst for improving data security."
While Canadians continue to have concerns with public cloud computing, the
study demonstrates that most Canadian businesses are meeting the challenges
and benefiting from an IT sourcing strategy that includes cloud. These
businesses are beginning to see that cloud services are typically built to a
higher level of performance and security than what can be achieved internally.
The window to gain a competitive edge is closing for Canadian businesses
There remains a short window of opportunity for Canadian businesses to become
knowledgeable about, plan for and expand their IT strategy to include cloud
and maximize its competitive advantage. Companies that are mostly supporting
IT internally need to think about what is core to their business and what can
be more effectively delivered by third party providers. The study found that
55 per cent of these organizations are already considering hosting and other
services as part of their business moving forward but only about one-third are
considering transitioning to cloud services.
"The future of cloud looks bright for Canadian business. The IDC white paper
states that over the next four years cloud will grow by 25 per cent and
hosting by 9.6 per cent compared to a growth rate of 3.5 per cent for the rest
of the Canadian IT market," adds Krueck. "Now is the time for businesses to
develop expertise with these IT sourcing options to realize a competitive
-- The 2013 IDC and TELUS Enterprise Cloud Study found that
Canadian enterprises give themselves a B+ compared to a C last
year on adopting new technologies and a C, up from a D+ in
2012, on their willingness to embrace new service delivery
-- The study found that 68 per cent of respondents that use
hosting services see cloud as the next progression in their IT
sourcing strategy that includes a combination of third-party
services and internally delivered IT.
-- The majority (60 per cent) of businesses using hosting services
are looking to expand the number of hosted or cloud workloads.
The study also found that 58 per cent of businesses are moving
towards fully sourcing applications and infrastructure to third
parties and 52 per cent stated that they would use cloud as
their primary method for all new IT deployments.
-- The study shows that 73 per cent of public cloud users reported
that it was meeting their financial expectations.
Incremental Benefits of Cloud:
|Top Incremental Benefits of |Top Incremental Benefits of Cloud |
|Hosting over |over |
|Internal IT according to |Hosting according to respondents |
|respondents | |
|1. Up-to-date technology and |1. Better data compliance (73%) |
|functionality (76%) | |
|2. Easier to source IT resources,|2. Allows IT to focus on supporting|
|skills and |the core |
|capabilities (74%) |business (73%) |
|3. Enable the business to be more|3. Allows business to reduce |
|agile (72%) |capital |
| |expenditures (72%) |
The study surveyed 250 Canadian business and IT leaders from large Canadian
companies (500+ employees) across a range of industry sectors, allowing the
IDC white paper to report on the Canadian corporate landscape, especially as
it relates to emerging trends in technology adoption. For more information on
the study, visit www.telus.com/cloudstudy.
TELUS (TSX: T, NYSE: TU) is a leading national telecommunications company in
Canada, with $11 billion of annual revenue and 13.2million customer
connections, including 7.7million wireless subscribers, 3.4million
wireline network access lines, 1.4million Internet subscribers and 712,000
TELUS TV customers. Led since 2000 by President and CEO, Darren Entwistle,
TELUS provides a wide range of communications products and services, including
wireless, data, Internet protocol (IP), voice, television, entertainment and
In support of our philosophy to give where we live, TELUS, our team members
and retirees have contributed more than $300million to charitable and
not-for-profit organizations and volunteered 4.8million hours of service to
local communities since 2000. Fourteen TELUS Community Boards lead TELUS'
local philanthropic initiatives. TELUS was honoured to be named the most
outstanding philanthropic corporation globally for 2010 by the Association of
Fundraising Professionals, becoming the first Canadian company to receive this
prestigious international recognition.
For more information about TELUS, please visit telus.com.
Elisabeth Napolano TELUS Media Relations 416-906-9830
SOURCE: TELUS Corporation
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