IT spending among utility companies in Central and Eastern Europe (CEE) is becoming more conservative in response to the overall economic situation, a recent IDC Energy Insights survey among IT decision-makers in the utility sector revealed. At the same time, the survey found that a persistent austerity climate stimulates these firms to explore alternative IT models, such as cloud computing.
“CEE utilities realize the competitive advantages they stand to gain from leveraging the cloud model. However, they remain quite cautious regarding its adoption, and the shares of their IT budgets dedicated to cloud computing remain relatively small,” says Milan Kalal, senior research analyst with IDC Energy Insights. “Our report shows that one half of the CEE utility companies surveyed do not dedicate any portion of their budget to cloud computing, and only 3% of respondents allocate 10% or more of their IT budgets to cloud. In spite of this, short-term expectations for cloud computing budget allocations are positive.”
Overall, cloud computing is still at a nascent stage in the CEE region, and industry standards, regulatory framework, and best practices that would fuel wider uptake have not yet been established. The IDC Energy Insights study showed that IT executives in the utility sector are considering a move to the cloud, as the industry has a number of distinctive features that could benefit from the new technology.
Additional key findings from the survey:
– CEE utilities identified IT issues as the main area to potentially benefit from cloud computing.
– The principle of paying only for services consumed, avoiding the need to over-provision, is a key driver of cloud computing deployment for CEE utilities.
– On-demand server and storage capacity is the function that utility companies consider the most suitable for deployment via both private cloud and public cloud (as indicated by 25% of survey respondents).
– Security remains the biggest concern about using cloud-based technologies; specifically, there are worries about entrusting systems and information to an off-site third party.
About the research
The survey results are analyzed in a new report by IDC Energy Insights that highlights the nature of current cloud computing environments, future plans for cloud deployments, industry-specific drivers and inhibitors for cloud investments, and delivery model and cloud service type preferences, specifically focusing on CEE utilities. The report highlights IDC Energy Insights- top recommendations and actions to consider for utility sector CIOs, key IT decision makers, and IT professionals considering moving into the cloud.
To purchase the study, Business Strategy: Utilities and Cloud Computing – A View from Central and Eastern Europe (IDC Energy Insights #EEI02U, March 2012) or learn more about IDC Energy Insights research, please contact Tatiana Hinova (thinova@idc.com, +420 221 423 140).
About IDC Energy Insights
IDC Energy Insights provides research-based advisory and consulting services focused on market and technology developments in the energy and utility industries. Staffed by senior analysts with decades of industry experience, IDC Energy Insights covers both the utility and oil & gas segments, providing independent, timely, and relevant analysis focused on key business and technology issues.
IDC Energy Insights serves a diverse and growing global client base, including electricity, gas, and water utilities, IT suppliers, independent power producers, retail energy providers, oil and gas companies, equipment manufacturers, government agencies, financial institutions, and professional services firms. For more information, please visit www.idc-ei.com or email info@idc-ei.com. Visit the IDC Energy Insights Community at http://idc-insights-community.com/energy.
International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. IDC helps IT professionals, business executives, and the investment community to make fact-based decisions on technology purchases and business strategy. More than 1,000 IDC analysts provide global, regional, and local expertise on technology and industry opportunities and trends in over 110 countries worldwide. For more than 47 years, IDC has provided strategic insights to help our clients achieve their key business objectives. IDC is a subsidiary of IDG, the world-s leading technology media, research, and events company. You can learn more about IDC by visiting www.idc.com.
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