New cloud research finds UK industries at different stages of adoption, but that retail organisations are the least advanced
New cloud research finds UK industries at different stages of adoption, but that retail organisations are the least advanced
IT and networking vendor Cisco has today published its first UK and Ireland CloudWatch Report, which found that retailers are lagging behind in terms of their adoption of cloud computing technologies and services.
Although 52% of the 250 public and private sector IT decision makers in large UK companies across five key sectors surveyed were aware of the benefits of cloud and increasingly putting it on the strategic agenda, only 60% of retailers questioned said cloud had no part in their IT strategy.
Comms key for cloud in retail
Despite this overall reluctance to embrace cloud at the heart of UK retail IT strategies, video conferencing emerged as perhaps an unlikely frontrunner in the cloud service adoption stakes. Over a third (38%) per said that they planned to join the 10% of retail organisations that have already invested in video over the next 12 months.
The report found improved communication in general was the biggest draw for IT decision makers in retail, with collaboration (72%) cited as the biggest benefit for adopting cloud technologies by those polled.
The report also found various factors were impeding cloud growth, not least the absence of cloud industry standards, which the overwhelming majority of all respondents (95%) would welcome.
Aside from concerns over security and privacy, which were an issue for 72% of retailers, anxieties around cost savings and return on investment (ROI) were cited by 66% as the biggest hurdles being faced by IT managers looking to adopt cloud computing in retail – more so than any other industry surveyed.
This research shows, however, that UK retail perceptions are out of step with the reality of the potential benefits on offer.
Released earlier this year, research carried out by The Centre for Economics and Business Research (Cebr), showed that European retail, hotels and distribution sectors stood to benefit most from the roll out of cloud computing services, creating value worth more than €233 billion (£197bn) in the next three years.
Calls for better industry standards
Ian Foddering, Cisco UK and Ireland chief technology officer and technical director, commented: “Cloud looks set to change the landscape of technology provision in companies over the coming years but until there is better collaboration within the industry to address issues of standards, security and innovation, customer reticence will remain.”
The 50 IT decision makers surveyed in each of the five sectors included in the research represented government, healthcare, finance and service providers (including telecoms operators / carriers, media and broadcast companies), as well as retail.
Retail Technology magazine will be covering the retail findings from Cisco’s CloudWatch Report in more detail in its upcoming September/October 2011 issue. Click here to subscribe to receive hard copies or register for the free electronic version.
