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Cloud Computing: US and EU lag adoption by companies in Latin America and APAC
Recent headlines based on a report from Tata Consultancy show surprisingly that the US significantly lags countries in Latin America and Asia Pacific in cloud adoption. Those results stand in sharp contrast to a different set of numbers also reported recently by Gartner. Gartner reports that North American companies are spending $9.1 billion on SaaS applications, compared to just $934 million and $419 million in Latin America and Asia Pacific countries.
It may be an apples and oranges comparison, but something doesn’t seem right with the Tata numbers. Gartner reported on total dollars being spent. While Tata looked at what percentage of total data is being put into the cloud. The Tata report is based on a sampling of 600 companies worldwide.
The main findings of the Tata report show the average amount of data being stored in the cloud for companies is as follows in these regions:
- 39 percent of Latin American company data is in the cloud
- 28 percent of Asia Pacific company data is in the cloud
- 19 percent of US company data is in the cloud
- 12 percent of European company data is in the cloud
The explanation for why the US and EU rank low is that US and European companies are more risk-adverse and sensitive to security issues than companies in Asia and Latin America. The US and Europe are also much more regulated and companies in these regions need to consider the risk of lack of compliance with regulations like Sarbanes-Oxley and the EU Data Protection Directive.
N Chandrasekaran, CEO and managing director of the India-based Tata Consultancy Services said that “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.”
