Upgrade Magazine


Companies actively using cloud, big data realize higher revenues than laggards

Organizations actively using cloud, mobility, big data or security technologies are experiencing up to 53 percent higher revenue growth rates than those that have not invested in these technologies, according to Dell’s annual Global Technology Adoption Index (GTAI 2015).

More specifically, those organizations using big data experience 50 percent higher growth rates. Those who have implemented on-premises cloud have 46 percent higher growth rates, while implementation of off-premises cloud led to 51 percent higher growth rates.

The study also revealed that BYOD implementations resulted in 53 percent higher growth rates, while mobile applications show 44 percent higher growth rates.

Meanwhile, companies globally are recognizing the advantages of security and are becoming more strategic in their investments.

On average, 54 percent of an organization’s security budget is spent on implementing security plans rather than simply reacting to threats.

In fact, organizations with ‘better security’ as a business goal are more likely to have security plans in place for some or all types of security incidents (69 percent versus 58 percent of their counterparts where ‘better security’ is not a business goal).

These technologies also fuel company benefits, including efficiency and organizational growth goals

The GTAI 2015 found a link between these technologies and organizational efficiency and growth goals.

For mobility, improved efficiency is the biggest benefit (39 percent), followed by business process improvement (21 percent), and reduction in paperwork (21 percent).

For cloud, the top three benefits are also efficiency related: cost savings (42 percent); getting things done faster (40 percent); and better allocation of IT resources (38 percent).

However, for big data, the key benefits are related to driving competitive advantage and customer growth and retention, including: better targeting of marketing efforts; optimization of ad spend; and optimization of social media marketing (37 percent).

In a similar vein, for security, the ability to more quickly respond to market conditions is a key benefit (77 percent of organizations with fledgling IT security programs, and 78 percent of organizations with established security solutions).

Cost joins security as a chief barrier to technology adoption, use and expansion

Despite this strong link between technology use and revenue growth, cost was cited as a main barrier to implementation or expansion of these technologies.

The 2014 report found that security was by far the biggest barrier to adoption of these technologies.This year, cost became a more pressing concern globally.

For big data, cost is the biggest obstacle for organizations not yet using big data and also those currently using it.

For organizations that have big data but are not yet using it, the primary barriers are: not knowing if the benefits are worth the cost (20 percent); the cost of IT infrastructure (18 percent); and the cost is too high to outsource analysis or operations (17 percent).

For organizations that are currently using big data,the cost of IT infrastructure is the primary barrier (29 percent).

However, for organizations that are currently using big data, security is the second biggest concern (28 percent).

Interestingly, survey respondents with business (i.e., non-IT) titles see the challenges differently. For them: security is the top barrier (31 percent), while cost is secondary (25 percent).

For cloud adoption and usage, cost and security are both large barriers.

For mobility, security concerns are the number one barrier to mobility expansion, but cost is the second biggest barrier. Security and fear of data breach is the most frequent barrier to expanding mobility (42 percent of organizations). Limited budget is the second most frequent barrier to expansion (34 percent of organizations).

Cost concerns and security challenges seem to go hand in hand. The study found that an organization’s IT budget greatly impacted its level of security planning and implementation.

Below the $100,000 IT annual spend level, fewer than one in five organizations have comprehensive security plans. Below the $25,000 IT annual spend level, fewer than half have formal security plans of any kind. Alarmingly, below the $10,000 IT annual spend level, nearly one in five companies have no security policies at all—not even informal guidelines.

Business leaders: Drivers and partners

Organizations globally named business teams as leading the adoption of big data and mobility much more frequently than IT teams.This might explain why business decision makers in organizations surveyed were more likely than their IT counterparts to feel their organizations took good advantage of big data.

Business teams lead adoption of big data 18 percent more often than IT teams, and they lead adoption of mobility 42 percent more often than IT teams.

However, both business and IT leaders are equally likely to lead adoption of cloud and security, suggesting these teams partner more closely on these initiatives.

While companies consider cost a significant barrier to technology adoption, the shows that the companies who have allocated budget for meaningful investments in technology have seen overall company growth across several important measurements of progress.

From improved efficiency to stronger revenue, cloud, mobility, big data and security technologies are proving to play a key role in company growth and goal attainment.

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