Retailers in Central and Eastern Europe Need More Information for Cloud Computing to Take Off, Says IDC

Prague, April 25, 2012 – The hype surrounding cloud has yet to penetrate deeply into the Central and Eastern European retail sector. In a recent survey by international marketing research company IDC covering the Czech Republic, Hungary, Poland, and Russia, more than half of the IT professionals working in retail indicated that none of their budget will be allocated to cloud in 2012. (Another 6.3% say they "don't know" how much is allocated.) This low figure reflects a lack of awareness about the cloud, as well as concerns over security, with the latter by far the number one inhibitor to cloud adoption.

"There is a sense that cloud computing is the same old technology with a new name," says Hana Chmelova, senior research analyst at IDC CEMA. "Some think of it as shared services, some as outsourcing, some as a mix of the two. Given that security concerns can be easily addressed through private and hybrid cloud models, this suggests that providers are not doing all they can to inform retailers of the benefits – not just for standard, backend IT, but also for retail-specific applications that can be quickly scaled up or changed as needed."

The survey also revealed that:

• Nearly one-third of retailers have already invested in or plan to invest in cloud-based sever capacity in the next 12 months.
• Growth is expected – 28.1% of retailers plan to increase their IT budget dedicated to cloud during the next three years.
• Business analytics, enterprise resource management, and collaboration applications rank high as potential cloud-based applications.
• Mobile POS (e.g., for queue busting) was the retail-specific application seen as most viable for migration to private cloud.

IDC believes that the market for cloud-based services among retailers in CEE is just getting started. Regular articles about cloud in retail trade publications and clearly defined value propositions (including case studies) will be needed for adoption to really take off. "In a sense, it is up to suppliers," says Chmelova. "The market is still fairly open. A supplier that can create an easy-to-use package that addresses security and regulations could walk away with it."

IDC's Retail Insights: Central and Eastern European Retail in the Cloud, 2012 (IDC #CEMA18430) presents insight into the attitudes of retail companies in selected CEE countries toward cloud computing. Based on a survey designed to ascertain the degree to which these organizations are using, or plan to use, cloud computing, the study reveals essential trends and attitudes among retailers in the still limited CEE cloud market. While cloud is not a priority, many retailers believe that deploying cloud services in their companies could reduce IT staff and save money.

To purchase the study or to learn more about IDC's research into vertical markets, please contact Tatiana Hinova at thinova@idc.com or +420 221 423 140.

About IDC

International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. IDC helps IT professionals, business executives, and the investment community to make fact-based decisions on technology purchases and business strategy. More than 1,000 IDC analysts provide global, regional, and local expertise on technology and industry opportunities and trends in over 110 countries worldwide. For more than 47 years, IDC has provided strategic insights to help our clients achieve their key business objectives. IDC is a subsidiary of IDG, the world's leading technology media, research, and events company. You can learn more about IDC by visiting www.idc.com.

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