Survey: Manufacturers Go All in on Cloud

The IDC study also shows that most are using their clouds for IT operations.

When it comes to the cloud, manufacturers are starting to get it.

A new study by IT analyst firm IDC shows that manufacturing companies on a global scale are moving to "cloud also" or "cloud first" methods of operation. That conclusion was part of the study, “Worldwide Cloud Adoption in the Manufacturing Industry,” which was conducted in 2014.

Cloud has taken such a hold that it's affected the rest of IT spending among manufacturers. "Traditional IT spend is clearly on the decline, and manufacturers must update their cloud roadmaps to ensure their investments benefit the business," IDC said in a press release.

IDC noted that 66 percent of manufacturers worldwide are using public cloud for more than two applications, and 68 percent are using private cloud (the press release didn't list percentages for hybrid cloud, which is rapidly becoming the standard for most businesses).

In the United States, that figure is lower -- just 41 percent. In Europe and Asia Pacific, about half of manufacturers are using the cloud.

Currently, the idea of cloud also is the predominant method of implementing cloud computing. In cloud also, companies add cloud hooks into their environments, rather than reconfiguring operations for cloud. In cloud first; using the cloud is the default choice, moving to other technologies only when the cloud is determined to be non-viable for a particular operation or application.

When it comes to how manufacturers are using clouds, the trend in the direction of IT operations is clear: "… only 30 percent to 35 percent of respondents indicate operations, supply chain and logistics, sales, or engineering expecting to benefit," IDC reported.

As would be expected, the money is following the cloud transition. IT budgets are expected to increase 27 percent for implementation of cloud services and cloud architecture over the next two years. In addition, the survey indicated that cloud computing will be the de facto standard for new operations in global companies. That's why IDC recommends that manufacturers "… will also need to review their underlying network and communication infrastructures" for cloud viability.

The survey included responses from 593 manufacturers worldwide.

About the Author

Keith Ward is the editor in chief of Virtualization & Cloud Review. Follow him on Twitter @VirtReviewKeith.


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