Canadian businesses that adopt "cloud-first" mindset considered to outperform peers

Canadian businesses that adopt "cloud-first" mindset considered to outperform 
peers 
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 
profitability, respectively. 
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 
making strides 
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 
respondents). 
"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 
advantage." 
Additional Statistics: 


    --  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
        options.
    --  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.

About TELUS
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 
video.

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 
Elisabeth.Napolano@telus.com

SOURCE: TELUS Corporation

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CO: TELUS Corporation
ST: Quebec
NI: TLS ECOSURV 

-0- Jun/11/2013 13:00 GMT


 
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