Cloud Computing Profits from High Flexibility and Efficiency

Thirty five percent of innovative German companies already use cloud computing. However, several companies consider its impact on the protection of sensitive business data and the dependence on external providers to be problematic. These are the findings of a representative survey conducted by the Centre for European Economic Research (ZEW) among 1,000 innovative companies and the analysis of a special question, which was part of the quarterly survey conducted by ZEW and Creditreform among the service providers of the information society (see details at end of press release).

Cloud Computing refers to the needs-based, dynamic utilization of software as well as storage and computing capacity via the internet, which offers a flexible charging model. High investment costs, which would arise for an on-premise solution providing the same resources, can be omitted when using cloud computing. Furthermore, new applications can be developed and combined and used flexibly. Many companies regard this flexibility as very important because it enables them to react quickly to changing market conditions. Thirty five percent of innovative German companies already use cloud computing. Fifteen percent of these companies exclusively use software applications via the internet, eight percent use computing capacity only and twelve percent of the companies surveyed use both software applications and computing capacity.

However, there are still several obstacles, impeding the more widespread use of cloud computing. More than sixty percent of the service providers, which represent the group that currently uses cloud computing most extensively, consider the dependence on external providers and the protection of sensitive business data as the main issues preventing a more widespread use of cloud computing. “Clear industry standards and a seal of approval, which support and document a high level of data protection, could help increasing the acceptance of cloud computing,” says Dr. Irene Bertschek, head of the research group information and communication technologies (ICT) at ZEW.

In contrast, the technical interface management, legal questions concerning, for example, liability and responsibility regulations or the future development of costs, are less frequently cited as reasons for not implementing cloud computing. Companies expect only minor difficulties regarding the necessary training of employees as well as the acceptance of cloud computing by business partners, customers, suppliers and employees.

For further information please contact

Prof. Dr. Irene Bertschek, Phone +49 621/1235-179, E-mail bertschek@zew.de

Dr. Jörg Ohnemus, Phone +49 621/1235-354, E-mail ohnemus@zew.de

Additional Information on the Surveys

The results of the representative survey, conducted by ZEW and infas among 1,000 innovative German companies and the analyses of the special question, which was part of the economic survey conducted by ZEW and Creditreform, both fall within the framework of a survey conducted by ZEW for BITKOM (Federal Association for Information Technology,Telecommunications and New Media).

ZEW /infas, Additional Survey on ICT Use Conducted in September 2010

The representative survey was conducted by the Centre for European Economic Research (ZEW) and infas Institute for applied social Science in September 2010 and is based on a sub-sample of the ZEW ICT survey conducted every two years. The survey included 1,000 innovative companies with a minimum of five employees from the following sectors using ICT: industry, trade, transport and logistics, financial services, business-related services (including renting, IT, engineering companies, management consulting, advertisement and other services for companies). The term “innovative companies” refers to companies that introduced product or process innovations in 2009. The results of the survey were projected to the total number of companies with a minimum of five employees.

The economic survey conducted by ZEW/Creditreform in September 2010

In September 2010, about 800 companies from the economic sector service providers of the information society participated in the quarterly survey. This economic sector consists of information and communication technology (ICT) service providers (businesses of the branches software and IT services, ICT specialised trade and telecommunication services) and knowledge intensive service providers (businesses of the branches tax consultancy and accounting, business consultancy, architectural offices, technical consultancy and planning, research and development and advertising).

Overview of the ZEW/Creditreform economy survey (in German only)