8129.0 - Business Use of Information Technology, 2013-14 Quality Declaration 
Latest ISSUE Released at 11:30 AM (CANBERRA TIME) 16/07/2015   
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PAID CLOUD COMPUTING IN AUSTRALIAN BUSINESS

Cloud Computing

The 2013-14 Business Characteristics Survey collected information about business use of paid cloud computing for the first time. Businesses with access to the internet were asked whether they used paid cloud computing services during the year ended 30 June 2014. Overall, nearly one in five businesses reported use of paid cloud computing services (19%).

Graph: Proportion of businesses with paid cloud computing services, by employment size, 2013-14

Graph: Proportion of businesses with paid cloud computing services, by industry, 2013-14

Information media and telecommunications recorded the highest proportion of businesses to have paid for cloud computing services (43%). Businesses within Agriculture, forestry and fishing were least likely to use paid cloud computing services (9%).


Cloud Computing Services Used

Businesses that reported using paid cloud computing services during the year ended 30 June 2014 were asked what types of services they used. Businesses could identify more than one type of cloud computing service used.

Overall, software was the most reported type of paid cloud computing service used by all businesses (87%), followed by storage capacity (57%).

Graph: Cloud computing services used, by employment size, 2013-14

Businesses with 5-19 persons employed were the most likely to have reported using software as a cloud computing service in 2013-14 (92%). While businesses with 200 or more persons employed recorded the highest proportion to have used processing power to run own software (29%) and storage capacity (73%).

By industry, Health care and social assistance recorded the highest proportion of businesses to have used software (93%). The Professional, scientific and technical services industry had the highest proportion of businesses to use processing power to run own software (18%), while Information media and telecommunications had the highest proportion to use storage capacity (74%).

Further statistics relating to cloud computing services used can be accessed via the Downloads tab.


Benefits of Cloud Computing Services

Businesses that used paid cloud computing services during the year ended 30 June 2014 were asked what benefits these services provided to the business. Businesses could identify more than one type of benefit.

Overall, simplicity of deployment of cloud-based solutions was the most common benefit (47%).

Benefits of using paid cloud computing services, by employment size(a)(b), 2013-14

0-4 persons
5-19 persons
20-199 persons
200 or more persons
Total
%
%
%
%
%

Reduction in IT costs
32.2
33.5
41.6
49.5
34.0
Flexibility to either up-scale or down-scale services
37.3
24.2
42.2
49.4
33.1
Simplicity of deployment of cloud-based solutions
48.9
43.9
49.9
48.2
47.2
Increased productivity
51.6
40.2
43.9
45.4
46.3
Other benefits
10.6
7.8
11.7
9.5
9.7
No benefits
14.0
18.6
8.7
6.6
15.0

(a) Proportions are of all businesses that used cloud computing services during the year ended 30 June 2014 in each output category.
(b) Businesses could identify more than one reason.


Businesses with 0-4 persons employed were most likely to have increased productivity as a benefit of cloud computing services (52%), while businesses with 5-19 and 20-199 persons employed were most likely to identify simplicity of deployment of cloud-based solutions (44% and 50% respectively). Businesses with 200 or more persons employed were most likely to identify a reduction in IT costs (50%).

Across most industries, businesses were most likely to report either simplicity of deployment of cloud-based solutions or increased productivity as a benefit of using cloud computing services. The exceptions to this were Manufacturing and Retail trade, where reduction in IT costs was more likely to be recorded as a benefit (41% and 43% respectively).

Further statistics relating to benefits of cloud computing services can be accessed via the Downloads tab.


Factors that Limited or Prevented the Use of Cloud Computing Services

Businesses that reported access to the internet were asked what factors limited or prevented the use of paid cloud computing services. Businesses could identify more than one factor.

Overall, the most commonly reported factor that limited the use of paid cloud computing services was insufficient knowledge of cloud computing services (23%).

Factors that limited the use of paid cloud computing services, by employment size(a)(b), 2013-14

0-4 persons
5-19 persons
20-199 persons
200 or more persons
Total
%
%
%
%
%

Risk of a security breach
14.0
18.2
23.6
30.4
16.2
Problems accessing data or software
6.2
8.7
8.4
15.9
7.2
Difficulties with unsubscribing or changing cloud computing service provider
3.4
4.3
5.1
7.2
3.9
Uncertainty about the location of data
9.5
11.0
14.4
19.2
10.5
Uncertainty about legal, jurisdictional or dispute resolution mechanisms
6.9
8.4
9.6
12.8
7.6
High cost of cloud computing services
10.1
12.0
12.2
19.8
10.9
Insufficient knowledge of cloud computing services
21.6
24.8
24.2
22.1
22.8
Other factors
4.5
4.6
4.2
5.5
4.5
No factors limited or prevented the use of paid cloud computing
61.3
55.8
51.0
43.6
58.7

(a) Proportions are of all businesses in each output category.
(b) Businesses could identify more than one limiting factor.


Further statistics relating to factors that limited or prevented the use of cloud computing services can be accessed via the Downloads tab.