IBM Study: Cloud Computing to Rewrite Corporate Business Models

The number of enterprises turning to cloud computing to revamp existing business models will more than double in the next three years, as business leaders move to capitalize on the rapid availability of data and the growing popularity of social media, according to a new study released today by IBM. Businesses that embrace the transformative power of cloud will have a significant advantage in the race to introduce new products and services and capture new markets and revenue streams.

To better understand the shift in how organizations use cloud today and how they plan to employ it in the future IBM, in conjunction with the Economist Intelligence Unit, surveyed more than 500 business and technology executives worldwide. The findings were compiled in a new study, titled “The Power of Cloud: Driving business model innovation.”

“Companies are starting to understand — cloud isn’t just about gaining efficiencies and cost savings; it’s about driving the kind of fundamental innovation that provides lasting marketplace advantage,” said Saul Berman, IBM global strategy consulting leader and co-author of the study.

Highlights from the “Power of Cloud” report:

The authors determined that companies want to leverage cloud for future growth and competitive advantages, and that both business goals and IT needs are driving cloud adoption

  • 16% of the executives said they currently using cloud for full-scale innovation; by 2015 35% plan to use it to change their business models
  • Around half of the respondents listed “organizational efficiency” as a current challenge; however only 31% expect it to be a major challenge over the next three years
  • 62% said “increased collaboration with external partners” is a factor in moving to the cloud
  • 57% said “competitive cost advantages through vertical integration” is a motivator
  • 56% said “opening new delivery channels and markets” by leveraging cloud is an objective
  • Other key reasons for cloud adoption are it’s capacity to “mask complexity” and enable user interaction, scalability using cloud, and cost savings and flexibility

 

The joint IBM/EIU study can be accessed here

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