IBM Study Shows 60% Of CIOs Ready To Turn To Cloud Computing
May 16 2011 - 6:18PM
Dow Jones News
More than half of chief information officers surveyed by
International Business Machines Corp. (IBM) are ready to turn to
cloud computing over the next five years, seeking to grow their
businesses and gain a competitive edge.
The Armonk, N.Y., tech giant's survey, which polled over 3,000
CIOs from 71 countries and 18 industries, showed 60% of CIOs plan
to use cloud computing, up from 33% two years ago. Demand for cloud
computing has jumped of late, with tech giants across the country
rushing to introduce new offerings. The technology generally allows
users to run programs and store information remotely, eliminating
the cost of operating the equipment themselves.
"It really was a massive jump for any area in two years," said
Jeanette Horan, who became IBM's CIO last week after previously
serving as vice president of enterprise business transformation at
the company.
She added in an interview that mature markets, like the U.S. and
Japan, are looking to cloud computing to drive savings and as a new
way to deliver IT services. In emerging markets, companies are
concentrating on cloud computing for business agility, the ability
to deploy new applications more rapidly, she said.
Seven out of 10 CIOs in the U.S., Japan and South Korea, and 68
percent in China, now identify cloud as a top priority, up sharply
from 2009 when only about a third of CIOs focused on cloud. The
industries most focused on cloud include media and entertainment,
automotive and telecommunications.
Meanwhile, the study also showed chief executives and CIOs
increasingly have the same priorities, especially when it comes to
analyzing the piles of data the companies amass. IBM said the shift
is because CEOs better understand the importance of technology,
especially for tasks like analytics, which extracts insights from
the massive piles of data companies have collected.
"CIOs used to be thought of as the people in the basement
running servers, but that's no longer the case," Horan said. "The
use of technology is pervasive across an organization, and most
organizations cannot run without that intimacy with the technology
and business processes."
For the next three to five years, CIOs and CEOs are focused on
strengthening relationships with customers, developing the skills
of employees, and gaining insight and intelligence from data. Of
the surveyed CIOs, 83% of respondents views business intelligence
and analytics as top priorities and 74% viewing mobile computing
and mobility offerings as game-changers.
"Companies are really trying to understand the dynamics of their
industry...as well as how to use that information in much more real
time to prioritize their own business agenda," Horan said. "This
really is about business agility."
-By Shara Tibken, Dow Jones Newswires; 212-416-2189;
shara.tibken@dowjones.com
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