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Survey: 28% of APAC biz run applications on cloud

Tata Consultancy Services' (TCS) new survey findings suggest that Asia Pacific and Latin America are more aggressive in adopting cloud computing.

Results of TCS' global survey conducted on senior managers and corporate IT executives from 606 large companies worldwide suggest that APAC and Latin America record a much higher proportion of cloud applications to total applications than their US and European counterparts.

APAC has 28% of its total applications run on the cloud, closely following Latin America with almost two-fifths (39%). These contrast with just 19% of the average US company's applications hosted in the cloud and 12% for the European companies.

N Chandrasekaran, CEO and managing director of the India-based Tata Consultancy Services said: "Cloud-based applications are already a substantial piece of large corporate IT infrastructure and the early benefits achieved are too substantial to ignore. There is huge [potential] for growth in both developed and emerging economies and we firmly believe that cloud computing will continue to open up opportunities for companies across many different functions."

Data security remains top concern

Overcoming the fear of security risks remains the key to adopting cloud applications, as the survey results show. Companies in the US and Europe remain especially conservative in their approach to cloud adoption for fear of data security breaches. Only 20% of US and European companies would consider or seriously consider putting their most critical applications in public cloud. In contrast, two-thirds of US (66%) and 48% of European companies would consider putting core applications in private cloud. Companies in Europe and in the US were also reluctant in putting applications with customer data in the cloud.

Customer-facing business functions are gaining the largest share of the cloud application budget. Marketing, sales and services capture at least 40% of the budget across the four regions, with companies cited the desire to get closer to customers through cloud marketing applications.

Cost cutting is not the biggest driver of cloud applications, according to the survey report. Instead, for companies in the Asia Pacific and US, the standardization of software applications and business processes is the main driver migrating on-premise applications to the cloud. As for companies in Europe and Latin-America, the biggest business driver of cloud apps migration is the speedy scalability of systems.

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