What Drives Companies to Adopt Cloud Technology

Many organizations have benefited from adopting cloud-based software as a service (SaaS) technology solutions. The key benefits include cost savings, process efficiency, and increased productivity, according to an Oracle-sponsored IDC study.

The study covered 160 large organizations with a minimum of 500 employees in Eastern Europe, Middle East and Africa (EMEA). The report revealed that many companies in the EMEA region are now embracing a positive attitude towards the SaaS technology. Chief Information Officers (CIO) and other key decision makers stated that when they look for new applications or replacement for their existing systems, they consider SaaS as an option while also looking at on-premise solutions.

But what drives organizations to transition to the cloud?

Top drivers for cloud technology

Access to better technology (58%) and more rapid deployment of supplementary IT resources (53%) are the top two drivers for adopting SaaS, according to the study. Other key motivators include

  • delivering more projects without requiring additional employees (51%)
  • standardization (50%)
  • access to better quality IT skills (49%)
  • access to the latest software and techniques (48%)

The report revealed that more than 60% of the organizations interviewed have either adopted or are now in the process of implementing the cloud solution.

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About 48% of the companies who responded are now using SaaS technology, and about 31% are planning to use SaaS within the next couple of years. About 22% are using platform as a service (PaaS) at present, and about 36% are planning to use it in the very near future.

Other interesting revelations of the study are the type of concerns raised by the respondents and the perceived risks they faced when making decisions to adopt SaaS. The security issue was among the key concerns alongside connectivity. For some companies, SaaS was the answer to connectivity issues. Those organizations that are already using SaaS disclosed that they also invested in additional security and network optimization to ensure high-quality SaaS solution.

Banking sector’s view on SaaS solutions

The study also showed that the banking industry offers significant promise for cloud computing and SaaS solutions. About 59% of the banks surveyed expressed confidence that cloud delivers remarkable benefits to their organization. About 52% of the bank respondents are currently using SaaS. This number is expected to increase next year as expressed by about 64% of the banks interviewed, with 38% of the banks adopting a “SaaS first” approach in implementing a new system.

The results of the survey revealed that SaaS adoption continues its rise to popularity. This modern cloud application enables more and more organizations to achieve their business objectives and gain better results.

Oracle delivers SaaS applications through its Oracle Cloud. Contact Four Cornerstone for any SaaS solutions your business needs. Our Oracle consulting in Dallas offers best-of-breed consultancy services to meet your expectations and needs.

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