Cloud technologies
Companies giving away advantages in competition

Companies around the world are overestimating the ability of their IT systems to adapt. The potential of outsourced IT services is still not recognised and effectively employed in most companies and many firms are unable to react quickly enough to a fluctuating load on their IT infrastructure.

A recent global investigation by Oracle highlights the companies who have not yet recognised the benefit of external service platforms: according to this study, only 32% of those surveyed understand what characterises this concept. Almost just as many (29%) do not have any idea where to begin with external service platforms. Solutions such as the Oracle Cloud Platform can bring significantly more flexibility to the companies. Besides savings during setup, it results in a faster development process and thus advantages in competition.

However, the technologies for outsourcing IT services are largely unknown in many places. For instance, half of those surveyed did not know that applications can switch between a public, private and hybrid cloud and outsource local applications to a service provider.

In addition, only around 50% of companies dare to develop, test and introduce their own applications for mobile devices within six months. This number even falls to below 30% when the processes required for this are to be in place within a month.

Nevertheless, 64% of the companies surveyed believe they are able to adapt to new business opportunities quickly and flexibly or respond to competitors’ products and services in a timely manner. The decision-makers surveyed also largely acknowledged the competitive advantage of greater agility. Eight out of 10 respondents are thus convinced that the rapid development of new applications, fast tests and the prompt launch of new products and applications are of existential importance for the success of the company.

In particular, the optimisation of applications for use on mobile devices is considered a crucial factor by almost one in three (29%). The risk of competitors being able to provide their customers with innovative products more quickly is perceived by 27% of respondents to be the biggest threat to their own business. Yet around 52% of the companies do not possess an IT infrastructure that can cope with the challenges from the competition.

All the same, according to IDC, external service platforms generate a global turnover of US$6 billion. Behind this lies growth of 41% in 2014, after turnover fell in 2013 by 11%. By 2019, this market could grow to a total of US$ 22 billion.

According to IDC, established SMEs meet with particularly tough competition from start-ups. Data applications on mobile devices, sensor technology and the use of social networks can be seen as their recipe for success. (Source: Oracle/IDC/bs)