Cloud service usage has increased dramatically in the Nordics over the last few years and the trend seems to continue in 2016, according to the Cloud Maturity Index survey, which has been produced by research company Radar on behalf of service and software company Tieto for the second consecutive year. Almost four out of five (77 percent) large Swedish organisations and enterprises utilize cloud services, compared to 60 percent in 2015. On average, Swedish organisations spend 4.9 percent of their IT budgets on cloud services and investments are expected to increase by 22 percent during 2016.
- The strong market growth is in part due to IT providers gradually replacing traditional services with new cloud based solutions. But primarily it’s about customers realizing the value of using cloud services to digitalize their entire business, even the more complex and critical parts, as security continues to improve, says Inger Ekman, Vice President, Technology and Modernization Services at Tieto Sweden.
However, a majority of Swedish organiaations is still at an immature or basic level when it comes to using cloud services. Only 12 percent can be considered mature and 24 percent as knowledgeable, while 49 percent are considered to have basic knowledge and 15 percent are viewed as immature in their usage. The report also shows that cloud mature organisations are showing considerably better performance compared to others, not the least because of clearly reduced IT costs (on average 34 percent lower than others).
- Almost half of all decision makers view cloud services as the best solution to support innovation within the organisation, but many still use the services in an inefficient way. Too many still view cloud services as a short-term solution to cut costs, rather than as an important part of their business strategy. A rethink is required to avoid the risk of falling behind in the transition brought on by digitalization, says Inger Ekman.
Strategies for cloud services on the rise – the public sector is reducing the gap
The study clearly shows that cloud services are high on the organisations? agenda, and 42 percent state that they currently have a strategy for cloud services, compared to 34 percent in 2015. The difference in maturity between different industries has also decreased during the last year. Both the public sector and manufacturing industry have taken big steps, with the public sector seeing the biggest increase. The finance sector is still the most mature when it comes to using cloud services.
- The big increase for the public sector is due to more suppliers offering cloud services that are customised for the specific needs and demands of the public sector, along with an increased understanding of the benefits of using the services. The manufacturing industry is also improving, but is still lagging somewhat behind overall, says Inger Ekman.
