Oracle unveils pan-EMEA study on challenges of Cloud adoption
The study found an increasing divide between IT and business that is leading to the poor adoption of Cloud.
Oracle, in close collaboration with Coleman Parkes, have released a study focused on the challenges of Cloud adoption across EMEA. According to the study, while many companies in EMEA are moving to the cloud, nearly half are struggling to implement cloud effectively and in a cost-efficient manner.
Furthermore, the study the study concluded that one of the key reasons behind the slow adoption lay with the fact that in most organisations, 60% of the overall IT spend was driven by individual business units, rather than by the IT departments.
Aptly called Putting Cultural Transformation at the Heart of Cloud Success, Oracle and Coleman Parkes' study included survey responses from 600 senior IT and business decision makers across Europe and the Middle East.
Middle East participants included the UAE and Saudi Arabia, which contributed 50 respondents evenly split between the two GCC countries.
Johan Doruiter, senior vice president of Systems, Oracle EMEA, said: "The issues companies face with their cloud resources are less to do with the technology itself and more to do with a lack of synchronization across lines of business.
"Decision-makers in each department are increasingly making cloud purchasing decisions without involving the CIO due to the ease of procurement. However, without one IT point-person to unify their cloud investment strategy companies will continue to struggle with individual departments tugging time and resource in opposing directions."
Additional findings from participants in the Middle East found that 60% of business decision makers believe IT funding "is too traditional and is stifling innovation." Also, 35% of Gulf States respondents highlighted that an inappropriate IT funding model is inhibiting their business, while 29% believe their respective IT culture is "unfit for the cloud computing age."
Despite this, 66% of Middle East respondents believe a a new funding model will allow IT departments to deliver more cloud services to the business, and 62% expect it will help the company reduce costs.
Hidir Mag, Regional Vice President Systems Sales Middle East and Africa commented: "Along with Turkey, the Gulf States are less ready to meet the demands of the cloud era than those in Western Europe, with 68% of respondents saying they have the correct IT organisational model to meet the demands of the cloud era, compared to 78% in the UK, 83% in Germany and 86% in France."
He added: "This shows that there are huge opportunities for businesses to change their IT strategies and start adopting a cloud first approach. This will help businesses deliver services better, faster and more efficiently and hence we expect to see the rate of cloud implementation continue to rise in the Middle East region."