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October 2013

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Independent Market Research: Dynamic Markets Report on Real-World Adoption of Cloud Applications at Midsize Organizations

Are you getting the best out of your cloud strategy? A new report from analyst firm Dynamic Markets reveals that adoption of cloud applications among midsize organizations is remarkably high—about 74 percent of respondents. Yet integration problems and other challenges plague the vast majority—about 84 percent—preventing them from getting the best out of their departmental cloud applications.

The report, Cloud for Business Managers in Midsize Organizations: The Good, the Bad, and the Ugly, is based on an extensive 2013 survey of 877 senior business managers in 17 countries, from a wide range of industries.

"While this survey clearly shows midsize organizations understand the potential value of cloud solutions, it also underscores the need to define a master cloud strategy plan. Growing companies should consider the potential cost and complexity of integrations, if not done holistically,” says Steve Cox, vice president, Oracle Midsize Programs. "You can’t bypass IT and expect to get the full benefit of adopting cloud solutions; the entire organization must be empowered to succeed. The more departments in an organization that use cloud solutions, the more integration is essential to achieve rapid time to value."

The Lure of a Quick Solution
Fifty-seven percent of survey respondents say cloud computing enables access to top-quality business applications that for many midsize organizations might otherwise be out of reach. And 51 percent said they chose cloud solutions because they offered a shortcut to getting what the department needed.

At first glance, such an approach might seem to make sense considering 23 percent of respondents said they felt the IT department was not helping to move their area of the business forward, while 31 percent saw cloud computing as a way to avoid the queue for IT time.

It is also not surprising that departmental-level managers are taking matters into their own hands, considering that 44 percent of respondents say their organizations lack overall cloud strategies aligned with the strategic direction of the business at the CEO and board of director level. And an additional 13 percent say they are unaware if such a strategy exists.

The Hidden Costs
Unfortunately, when individual departments implement niche cloud solutions, the hidden costs can be high, according to midsize business leaders.

About half of respondents are unable to access cloud data in other departments directly from within the business application used by their own department. Other downsides include

  • Forty-two percent of cloud users have encountered usability issues with the cloud solutions in their department
  • Thirty-one percent have had to rely on the IT department for help with their cloud solution
  • Forty-two percent have seen a data security breach in their department associated directly with the use of cloud solutions, averaging five incidents per department in the last 12 months
  • Seventy-two percent say having cloud data handled externally by one or more cloud vendors makes it hard for their department to be compliant

To gain the advantages of cloud computing, growing organizations need a cohesive strategy for adopting a complete, modern, flexible, and secure enterprise-ready cloud.

Read Oracle Cloud Solutions: The World’s Most Comprehensive, Flexible, and Secure Cloud Offerings and explore other Oracle Cloud resources.

Read the complete Dynamic Markets report.

Get started now—try Oracle Cloud.

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