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Oracle IaaS Adoption

You & IaaS

Adopt, Disrupt and Thrive

Our latest Pulse Survey was conducted in July and August 2017, and captured the views of 1,600 senior IT professionals. The results show IaaS adoption continued to grow in the three months following the previous survey, and how attitudes to IaaS are increasingly positive.


The IaaS edge: new opportunities for productivity and innovation

Chart 2

Chart 2: Proportion who say that enterprise-wise IaaS is a crucial part of a progressive cloud strategy

IaaS is quickly becoming the default choice for enterprise cloud environments.

Businesses choosing to deploy IaaS are in the clear majority and their numbers are still continuing to grow: the first Oracle Pulse Survey found that 86 percent of businesses had adopted IaaS; today, that figure is 94 percent. Growth has been particularly strong in Europe: adoption has risen by 17 percentage points in both the UK and Germany.

Over two-thirds (69 percent) of those surveyed say they believe that any progressive cloud strategy should now include enterprise-wide IaaS—a rise of eight percentage points in just three months.

In the early days of IaaS, businesses adopted it as a competitive differentiator: cloud services provided businesses with an edge over competitors that used on-premises technology, by giving them faster time to value and cutting costs. Now, businesses are using IaaS for different reasons: they are adopting it to keep up with the bulk of companies that have already moved their infrastructure to the cloud. Two-thirds of companies surveyed (66 percent) say that businesses not investing in IaaS will increasingly find themselves struggling to keep pace with those that are.

Chart 3

Chart 3: Proportion of users who have experienced the following benefits

Adding value

Among the companies that have adopted IaaS, a significant proportion are experiencing business-wide benefits in addition to those mainly felt by the IT department.

Of those surveyed, over half (56 percent) report increased productivity after adopting IaaS—the most commonly reported benefit.

These productivity gains are particularly felt in the IT department, where staff are finding that they are freed from managing IT infrastructure. Nearly one in two (46 percent) companies using IaaS report that the technology gives these staff more time or scope to concentrate on projects that add business value.

As well as enabling staff to concentrate on higher-value work, IaaS continues to help IT departments cut costs: 68 percent of businesses say that using IaaS has significantly reduced their ongoing maintenance. While the same proportion say that IaaS has cut their time to deployment for new products and services.

Chart 4

Chart 4: IaaS and enhanced agility

Beyond this, IaaS is helping the bottom line elsewhere: 34 percent of businesses say that IaaS has brought them competitive advantage, while 36 percent have achieved greater ability to innovate

Enabling innovation

The rise of digital transformation projects means that IT departments are now tasked more than ever with helping to drive the business forward, becoming a profit center, and enabling disruption.

As a result, IT departments are now judged on their innovation, and it is a persistent theme in the survey: 72 percent agree that IaaS makes it easier for organizations to innovate—a rise of 10 percentage points since the last Pulse Survey. One in five says that adopting IaaS has made it easier for them to disrupt the market.

Chart 5

Chart 5: Proportion who agree that IaaS makes it easier to innovate

Growing with the business

The longer businesses have had their IaaS deployment in place, the more likely they are to be enjoying greater benefits.

Just 26 percent of recent adopters (those which began adopting IaaS within the past year) say that it has given them greater ability to innovate, but that figure rises to 44 percent of experienced users. Similarly, 29 percent of recent adopters say that IaaS has given them a competitive advantage, compared with 40 percent of experienced users.

EMEA is positive—and the UK and Germany stand out

Chart 6

Chart 6: Across EMEA, businesses are convinced of the utility of IaaS

Most businesses surveyed across the four EMEA countries agree: any progressive cloud strategy should now contain enterprise-wide IaaS, including three-quarters of those in both the UK and Germany.

UK and German businesses are feeling the business benefits of IaaS most strongly. Improved security was reported by 53 percent of UK enterprises and 56 percent of their German counterparts, while 38 percent of those in the UK experience enhanced system availability and uptime, along with 43 percent of those in Germany—the highest figures in the region.

The majority of EMEA organizations also agree that migration to IaaS is no more challenging than any other server changeover, and that the technology can compete with on-premises infrastructure on crucial criteria: customization, scalability, speed and availability.

Chart 7

Chart 7: How thoughts on customization differ across EMEA

It is in Saudi Arabia that businesses are more likely to favour their in-house systems. Nearly a third (30 percent), for example, feel that the scalability of IaaS falls behind that of on-premises solutions, compared with 15 percent or less of businesses in the UK, Italy and Germany. And about a quarter say that IaaS cannot match the customization offered by their on-premises systems, compared with just 10 percent of German organizations.

However, like their peers elsewhere in EMEA, companies in Saudi Arabia, clearly recognize the benefits of adopting IaaS: 61 percent believe that moving to IaaS has significantly cut their ongoing maintenance costs, and 60 percent say that businesses that are not investing in IaaS will increasingly find themselves struggling to keep pace with businesses that are.

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