Cloud computing in the passing lane

SECURITY INSIGHTS | 25 June 2020

Just a few years ago, German companies were still considered conservative cloud sceptics. This situation has fundamentally changed. Cloud computing is now part of everyday life in three out of four companies in Germany. The undeniable advantages of the cloud have convinced even the most sceptical.

The increasing migration from local systems to scalable cloud solutions in the German economy continues. “Cloud applications have taken hold throughout the economy. Companies have understood that cloud computing is a vital technology for tomorrow’s business,” reports Dr. Axel Pols, Managing Director of Bitkom Research, on the results of the “Cloud Monitor 2020” study, prepared in cooperation with KPMG.

Data protection and IT security are the top criteria

The representative study shows that when choosing a suitable cloud service provider most German companies are primarily interested in reliable data protection and solid IT security. For as much as 96 percent of all companies surveyed, conformity with the General Data Protection Regulation (GDPR) is the most important criteria for selecting a provider. This is followed, for 88 percent, by a transparent security architecture as a basic requirement for cloud services.

The data storage location is also very relevant for cloud users and planners. For example, two thirds (65 percent) require a data center of the provider in the legal territory of the EU. Almost as many (63 percent) also want the cloud provider to have its headquarters in Europe.

Benefits of the cloud: Accessibility, scalability, and security

The use of cloud solutions is having a positive impact on the majority of German companies. For example, cloud concepts facilitate mobile access to IT resources, report almost eight out of ten companies. On the other hand, 77 percent of the decision-makers surveyed swear by the high scalability in the cloud; one in two companies also benefits from greater IT security when using the cloud. A quarter of respondents cite cost savings.

According to the survey results, cloud solutions are also less susceptible to security incidents when directly compared to traditional corporate IT. Nevertheless, security concerns are a stumbling block for the few remaining cloud deniers to switch over.

The benefits of the cloud speak for themselves

In view of the ongoing digitization and the positive experience the majority of German companies have had with cloud computing, the switch to such forward-looking technologies will continue to increase. In the wake of the corona pandemic, which has proven to be an accelerator of digitization, many naysayers have once again been convinced of the potential of the cloud.

For companies already in the cloud, however, it is important to scrutinize existing processes and optimize them if necessary. There is no specific blueprint for cloud computing in the company. Instead, each company must decide for itself which concepts are suitable – whether private, public, or hybrid cloud. In addition to provisioning, flexible service models such as SaaS (Software as a Service), Paas (Platform as a Service), and IaaS (Infrastructure as a Service) provide even more leeway for the transition. The market now has a suitable cloud solution for almost all deployment scenarios. Implementation requires qualified partners with the necessary experience.

Information on methodology: The study is based on a survey conducted by Bitkom Research on behalf of KPMG AG Wirtschaftsprüfungsgesellschaft. 555 companies from various sectors with 20 or more employees in Germany took part. In the telephone interviews each of the company’s managing directors, IT managers, CTOs, and CIOs were surveyed.

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