Seventy-two percent of UK medium-sized firms are investing more in analytics to improve operational efficiency, with 70% adopting Cloud technologies, according to an IBM’s global study.
The study reveals companies are hoping to better understand their customers, make improved business decisions and become more efficient by improving their technologies. The main benefits of cloud computing cited include cost reduction, better manageability of IT, improved system redundancy and remote access.
The main benefits of cloud computing cited include cost reduction, better manageability of IT, improved system redundancy and remote access.
“Cloud computing delivers many tangible benefits, including eliminating initial capital expenses for IT systems as well as increasing central processing unit efficiency and reducing energy consumption; benefits particularly important to midmarket customers given tight economic conditions,” says Andy Rigby, managing director EMEA, Virtustream, an IBM business partner. “As such, we’ve seen a steady increase in interest from midsize companies who are looking for trusted technology partners that can address and eliminate many of the obstacles of widespread cloud computing adoption, such as security and availability concerns.”
Of the 100 UK survey respondents, 62% expect their IT budgets to increase over the next 12 to 18 months, compared to just 11% of the respondents in the 2009 survey. The survey found less than 20% expect their IT budget will remain unchanged in 2011, and 19% think they will decrease or are unsure.
To achieve business objectives, 74% plan to pursue a consultative, versus a purely transactional, relationship with their primary tech provider.
The main obstacles to IT adoption mentioned in the survey were cost, difficulty in acquiring and implementing technology solutions and lack of IT skills and resources. A third of respondents stated access to affordable financing as a barrier.
“This survey suggests that while operational cost reduction remains a major priority for midmarket firms, many are now looking to increase business investment in key areas such as their IT infrastructure,” confirms Miles Templeman, general director of the Institute of Directors. “This change in mindset suggests that companies are beginning to think more about the path to growth and less about recessionary pressures.”
Comparisons between this recent study and those from 2009 reveal a shift from a predominant focus on cost control and efficiency, to greater emphasis on growth initiatives; today, the majority (81%) are concentrating on customers, growth and innovation. This is reflected in the increased adoption of analytical technologies that have become more affordable and available for medium-sized companies.
“The survey findings show that medium-sized companies are tackling a new set of opportunities to advance their role as engines of economic growth,” said Lubomir Cheytanov, midmarket business leader for IBM. “When we surveyed medium-sized firms 18 months ago, most were focused on reducing costs and improving efficiencies. Today, the conversation is also about expanding their business, connecting with customers and gaining greater insights.”
Overall, of the 2,112 midsized companies surveyed, more than half are planning to increase their IT budgets over the next 12 to 18 months. These companies are investing in various analytics, including cloud computing, collaboration, mobility and customer relationship solutions.
The Inside the Midmarket: A 2011 Perspective was commissioned by IBM and conducted independently by KS&R, Inc. The companies involved in the study each employ between 100 to 1,000 employees and represent over 20 countries.
