IRELAND COULD become a global software leader if those with the right expertise can utilise the large cloud computing facilities that already exist here, according to an expert in the field.
“With Amazon, Google and Microsoft all having centres here you can see that all the major players are on your doorstep,” said Chris Weitz, global leader for Deloitte’s cloud computing practice. “The country can use that to create a software centre that can compete on a global scale.”
Mr Weitz also said a vital factor in developing the sector was having companies that were not tied down by traditional software portfolios and had an incentive to innovate. He pointed to Zynga, maker of web-based game FarmVille, as an example of a legacy-free company that has capitalised on the opportunity to create new, cloud-based software.
“Incumbents have a counter-incentive to innovate because they are afraid of undermining their own business,” he said.
Mr Weitz was in Dublin this week to launch the 2011 Deloitte CIO Survey. This annual report gathers the opinions of chief information officers (CIOs) around Ireland and the world to identify trends in enterprise IT.
This year’s survey showed that adoption of cloud computing in Ireland was at 40 per cent, static compared to last year, with software as a service accounting for the majority of usage. Security fears appear to be what is holding adoption back in many cases, with most CIOs most likely to use the cloud for employee data only.
According to Mr Weitz the US is faring better when it comes to cloud adoption and by his analysis is about a year ahead of the trend in Europe. However, he said companies around the world are realising that cloud adoption is likely to be a gradual process.
“One thing people maybe don’t understand is that it is more complex than vendors might have you believe,” he said.
“Companies have to consider the core, boundary and edge of their operations; the customer-facing edge might be able to move to cloud quickly while the core processes might never shift.”
Outside of cloud computing Deloitte’s survey shows many areas of concern among CIOs. Just 31 per cent of those asked felt their firms saw IT as something that could add value, down 7 per cent.
Some 70 per cent of CIOs also saw an increase in regulatory requirements with most expecting further increases in the year ahead. Half of those surveyed said their departments were struggling to meet these requirements on time. However, there was some positivity regarding IT budgets, with 55 per cent of respondents expecting an increase or no change to their budgets, while 45 per cent predicted a decrease.
