Press Release

Third of Western European Retailers Expect to Increase Spending on Cloud Computing by Up to 25%, According to IDC Retail Insights Survey of IT Decision Makers


LONDON, June 8, 2012 — An IDC Retail Insights survey of IT decision makers found that cloud spending in retail is set to grow in the coming three years, with about a third of retailers indicating expected spending increases of up to 25% in cloud computing.

The survey results are analyzed in a new report by IDC Retail Insights that discusses retail-specific responses from a broad IDC survey on cloud computing. The document details the trends around cloud computing in the Western European retail industry, looking at adoption rates and important characteristics, and how these factors will impact retail IT budgets in the next two years. The report concludes with recommendations for IT practitioners in retail on how to address and manage cloud computing solutions.

The survey shows that although current cloud adoption rates in Western European retail are low, adoption is expected to increase 300% by 2014. The survey also reveals that 61% of Western European retailers intend to invest in cloud computing in 2012, with a slight skew toward greater investment from large retail companies (500+ employees), with the budget for cloud being typically less than 5% of the overall IT spend.

The survey reveals that:

  • Cloud adoption is currently low but is expected to increase fourfold in the next two years.
  • Social tools, ecommerce, merchandise management, and supply chain solutions are popular cloud adoption technology areas.
  • Retailers are still resisting public cloud deployments over security concerns and "last mile" connectivity issues.
  • Hybrid cloud views and best practices are still developing.
  • Cloud deployments will be driven by the need to meet omnichannel retail business objectives.
  • Mass adoption will occur in parallel with best practices and businesses cases becoming widely available.

"As retail customers become more demanding and CIOs are forced to increase productivity of IT budgets across multiple touch points and channels, cloud technologies and solutions could help retailers achieve these business objectives," said Luca Bonacina, research analyst for IDC Retail Insights EMEA and the lead author of the report.

"There is still a highly fragmented view in Western European retail around the suitability of cloud deployment for most technology areas," said co-author Christine Bardwell, research manager for IDC Retail Insights EMEA. "However, as business cases are becoming available and best practices are formed, investment will grow significantly in the coming two to five years."

For more information about the report (Current and Future Cloud Adoption Trends in Western European Retail, IDC Retail Insights #GIPW04U, February 2012) or to arrange a one-on-one briefing with IDC Retail Insights analysts, please contact Kanupriya at kanupriya@idc.com.

About IDC Retail Insights

IDC Retail Insights assists retail businesses and IT leaders, as well as the suppliers that serve them, in making more effective technology decisions by providing accurate, timely, and insightful fact-based research and consulting services. Staffed by senior analysts with decades of industry experience, our global research analyzes and advises on business and technology issues facing the retail industry. International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology market. IDC is a subsidiary of IDG, the world's leading technology, media, research, and events company. For more information, please visit www.idc-ri.com or email info@idc-ri.com. Visit the IDC Retail Insights Community at http://idc-insights-community.com/retail.

For more information, please contact:


Kanupriya
kanupriya@idc.com
+44 20898 77 111

  
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