Survey suggests cloud computing has reached tipping point in Ireland

Cloud computing has reached a tipping point according to a new survey of Irish IT resellers conducted by industry channel magazine, Irish Computer in association with Let’s Operate.

The survey of 110 IT dealers and support companies found that 85% say that customers have enquired over the last 12 months whether they should be using cloud services. And 87% expect increased interest and enquiries from customers over the next 12 months.

“Cloud computing has been around for a long time but Irish businesses are now seriously investigating implementation and asking their IT support companies about it,” commented David Owens, managing director of hosted desktop company, Let’s Operate, which sponsored the study.

Three quarters of IT companies say they have a cloud option to offer customers although a quarter do not. Over a half of IT companies which do not have a cloud option are actively investigating one.

“A minority of the channel risks being left behind if they don’t have a credible cloud offering to meet this unprecedented customer interest,” commented Paul Hearns of Irish Computer.
One in five dealers views cloud as a threat to their core business or aren’t sure if it does. The main danger cited by almost 60% of those who view cloud as a threat is that it will cannibalise their existing business.

“Like the traditional on premise software vendors, the channel is going to have to come to terms with cloud,” commented David Owens. “This survey is a stark reminder that cloud is not going to go away any time soon. Those dealers who won’t or can’t adapt risk going the same way as traditional travel, music and book businesses.”
On the positive side, 80% of dealers view cloud as an opportunity for their business with long term recurring income seen as the number one benefit. 37% see significant demand for cloud services as an opportunity to meet this need.

However, almost 40% are not altogether confident that their sales teams are committed to communicating the benefits of cloud. “Cloud requires a different mindset and business model for the channel which changes the traditional approach to up front commission based sales as well,” said David Owens.

Full details of the survey will be published in the April edition of Irish Computer.