Danish Cloud Maturity Survey 2018 - Current and planned adoption of cloud services
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Danish Cloud
Maturity Survey
2018
Current and planned
adoption of cloud services
Danish Cloud Maturity Survey 2018 | 1
Early days for cloud adoption with concerns for
security and expertise, and complexity of migrating
the legacy applications
Cloud maturity and current usage of cloud-based sectors, such as TMT, are represented in both
services are still relatively low categories. Lack of expertise is broadly reported
across all sectors and organizational size, whereas
Cloud maturity is still relatively low in Denmark
legacy applications is a clear concern in global
with larger organizations lagging behind medium
organizations and in the Governmental and Public
sized organizations. The Technology, Media and
Sector.
Telecommunication (TMT) sector is reported to
have the highest cloud maturity. This can be
Plans for increasing the use of cloud-based
attributed to the impact of technology disruption in
applications exist, but will be delayed till the
the TMT sector and emergent adoption of Internet
adoption of cloud-based infrastructure takes off
of things (IoT) and Big Data in the sector. The
Power and Utilities (P&U) sector, and the Consumer The largest Danish organizations are planning to
Products and Retail (CPR) sector have low cloud significantly increase the usage of cloud-based
maturity and seem to struggle with the digital applications in the coming years, with the A&T and
transformation needed to meet the changing TMT sectors giving the highest rank. However, the
market dynamics toward online retailing. That adoption of cloud-based infrastructure services is
sector also reports of less number of approved expected to lag behind due to the complexity of
cloud services and dominate seeing security as a migrating legacy applications to the cloud and lack
concern. of expertise.
Digital Transformation is driving cloud adoption Developing cloud strategies and executing on
cloud road maps have priority over tackling the
The most important business driver of cloud
security and migration issues
adoption in Danish organizations is digital
transformation. However, most of the cloud There is a high focus on building new cloud-native
services still seem to be used for internal IT digital applications to support digital
initiatives and pilots of new digital services, as transformation, developing cloud strategies and
indicated by the limited interest in moving to the executing on cloud road maps in the coming years,
cloud to drive revenue growth. This is predictable with indications of TMT sector as the front-runner
in Public Sector but this is not restricted to this with the P&U sector trailing behind. But with
sector alone. Even the P&U, CPR and Automotive reported lack of expertise and the effort required
and Transportation (A&T) sectors rank revenue for overcoming the issues related to legacy
growth low as a cloud driver. migration, it will take time until the cloud adoption
really takes off.
Security concerns and lack of cloud expertise
along with legacy applications are holding back
cloud adoption
Security concerns are reported as a top challenge
while improved IT security is reported as a
mid-ranked benefit of cloud adoption. Some
Contents 01 Cloud maturity 02 Drivers and challenges 03 Current usage 04 Future plans 05 Security 06 About the survey
01 Cloud maturity
Cloud maturity is still relatively low
Average cloud maturity based on geographical footprint
Average of cloud maturity level of respondents on a scale from 1 to 5,
where 5 is the highest
5 Average cloud maturity of the Danish respondents
is between 2 and 3, which is supported by EY’s
4 experiences in Denmark.
Organizations with a broader geographical
3 footprint (EU/Nordics or global) have slightly
higher cloud maturity than those with a Danish
2 footprint, indicating that the organizations with a
local focus is less likely to employ cloud solutions.
1
0
Denmark EU/Nordics Global
Average cloud maturity based on sector
Average of cloud maturity level of respondents on a scale from 1 to 5,
where 5 is the highest
5 The TMT and Health and Life Science, HLS, sectors
have the highest cloud maturity due to high
adoption of the applications based on Software as a
4 Service (Saas) sanctioned by the organization's IT
department. This can be attributed to the impact of
technology disruption in the TMT sector and the
3 emergent adoption of Internet of things (IoT) and
Big Data in the sectors.
2
1
0
Power & Utilities
Telecommunications (Tmt)
Consumer Products & Retail
Government & Public Sector
Health & Life Sciences
Transportation
Automotive &
Technology, Media &
Danish Cloud Maturity Survey 2018 | 502 Drivers and challenges
Digital Transformation is driving cloud adoption
but the security concerns and lack of cloud
expertise is holding back the organizations
Key business drivers for moving to the cloud
Percentage of respondents reporting the driver
There are many strong business drivers for moving
Drive digital transformation 73% to the cloud, the most important ones being digital
transformation and reduced time-to-market with
Reduce time-to-market with new digital
solutions
65% new solutions. The improved business scalability is
also a key driver for moving to the cloud in the
Improve business scalability 62% Danish market.
There is, however, less interest in moving to the
Develop new products and services 54% cloud to drive revenue growth or reduce costs.
This indicates that the use of cloud services could
Drive business innovation 50%
be focused at internal IT and pilots of new digital
services.
Reduce costs 46%
Drive revenue growth 27%
Benefits of using cloud services
Percentage of respondents reporting the benefit
Greater scalability 77%
Shorter IT infrastructure deployment time 50%
Business continuity 50%
Higher availability 46%
Shorter time-to-market with new digital solutions 42%
Improved IT security 38%
Improved IT operational efficiency 35%
Cost savings 31%
Move from CapEx to OpEx 27%
Reduced IT operational risk 23%
Larger geographic reach 23%
Increased developer productivity 19%
Higher performance 12%
Other 4%
Greater scalability and shorter IT infrastructure deployment time are reported as the most significant benefits
of using cloud services. Cost savings as a benefit of adopting cloud services is reported as less important than
operational benefits such as business continuity, availability and IT operational efficiency for now. This
indicates that flexibility, agility and operational stability are viewed as more important benefits than cost
reduction.
About 38% of respondents reported improved IT security as a benefit of using cloud, while security concerns
have been reported as a top challenge related to cloud services adoption.
Danish Cloud Maturity Survey 2018 | 7Digital Transformation is driving cloud adoption
but the security concerns and lack of cloud
expertise is holding back the organizations (Contd.)
Challenges related to using cloud services
Percentage of respondents reporting the challenge
Security concerns 54%
Lack of cloud expertise 54%
Compliance and/or regulations 50%
Complexity in migrating legacy applications 50%
Complexity of managing cloud costs 46%
Complexity of managing multiple cloud services 35%
Vendor lock-in 27%
Move from CapEx to OpEx 15%
Current identity management solutions and processes 12%
Do not use cloud 4%
Other 4%
Security concerns and lack of cloud expertise are reported as the most significant challenges related to using
cloud services, closely followed by compliance with regulations, legacy application migration and the
complexity of managing cloud costs.
This is supported by EY’s experience from other projects that shows that organizations do not have the full
expertise to manage cloud security. Many organizations have currently identified privacy and regulation
compliance with General Data Protection Regulation (GDPR) as a challenge to securely manage data across
different platforms and identify the geographical origin of the cloud host.
Danish Cloud Maturity Survey 2018 | 803 Current usage
Current usage of cloud-based services is still
low, with Microsoft as the dominant service
provider
Share of cloud-based IT applications
Percentage of respondents within each range
3% 3%
All respondents report to have cloud-based IT
applications. However, the responses show that the
Danish cloud maturity is relatively low.
12%
About 52% of the respondents report to use cloud
services for only 1%–19% of their IT applications
whereas 30% use cloud services for 20%–39% of IT
52% application.
30% In the 1%–19% group, the CPR and A&T sectors are
slightly dominant.
1%–19% 20%–39% 40%–59% 60%–79% 80%–100%
Share of cloud-based IT applications
Percentage of responses within each range split based on the respondent's geographical
footprint
Respondents with EU/Nordics footprint are
reported to have a lower share of IT applications in
Denmark 50% 14% 29% 7% the cloud compared to those with a global or
Danish footprint.
EU/Nordics 75% 25%
Global 36% 55% 9%
1-19% 20-39% 40-59% 60-79% 80-100%
Danish Cloud Maturity Survey 2018 | 11Current usage of cloud-based services is still
low, with Microsoft as the dominant service
provider (Contd.)
Use of SaaS-based IT applications
Percentage of respondents using the application
Microsoft Office 365 88%
Adobe Creative Cloud 62%
Microsoft Power BI 54%
ServiceNow 27%
Microsoft Dynamics 365 27%
GitHub 27%
Dropbox 27%
JiRA 23%
Slack 15%
SAP Sucessfactors 15%
Salesforce.com 15%
DocuSign 15%
Zendesk 12%
Google G Suite 12%
Box 12%
New Relic 8%
Workday 4%
SAP Ariba 4%
Other 4%
Microsoft Office 365 is the most used cloud-based IT application in the Danish market followed by Adobe
Creative Cloud. The responses also show that Microsoft has a strong overall position, with Office 365, Power
BI and Dynamics 365 among the top five cloud-based IT applications used.
In addition, IT development and operations process tools, such as JIRA and GitHub, are used in almost every
fourth large Danish organization. Slack is also on the top list of usage, indicating that SaaS adoption can
happen very quickly even at large Danish organizations.
Danish Cloud Maturity Survey 2018 | 12Current usage of cloud-based services is still
low, with Microsoft as the dominant service
provider (Contd.)
Share of cloud-based IT infrastructure
Percentage of responses within each range
3%
3% Security concerns, lack of expertise and
3%
migration complexity are reported as
6% barriers for moving to the cloud, and almost
all of the respondents have below 64% of
their IT infrastructure in the cloud.
On average, the responses show less use of
21%
cloud-based IT infrastructure compared to
64% cloud-based IT applications, indicating that
the adoption to cloud services is happening
more rapidly in the applications layer.
1%–19% 20%–39% 40%–59%
60%–79% 80%–100% Do not use cloud
Share of cloud-based IT infrastructure
Percentage of responses within each range split based on the respondent's geographical
footprint
Organizations with a global footprint tend
to have a larger share of cloud-based IT
Denmark 58% 14% 14% 7% 7% infrastructure than those with Danish or
EU/Nordic footprint.
EU/Nordics 87% 13%
Global 55% 36% 9%
1-19% 20-39% 40-59%
60-79% 80-100% Do not use cloud
Danish Cloud Maturity Survey 2018 | 13Current usage of cloud-based services is still
low, with Microsoft as the dominant service
provider (Contd.)
Number of IaaS or PaaS providers used
Percentage of respondents within each category
A majority of the respondents use more than one
5% 5% Infrastructure as a Service (IaaS) or Platform as a
Service (PaaS) provider, and 15% reports to use
16% three or more providers, indicating that a
multi-cloud strategy is popular in the Danish
market for the organizations that use it.
42%
32%
Use no IaaS or PaaS provider
Use one IaaS or PaaS provider
Use two IaaS or PaaS providers
Use three IaaS or PaaS providers
Use four or more IaaS or PaaS providers
IaaS or PaaS provider used
Percentage of respondents using the provider
Microsoft Azure is, by far, the most popular IaaS or
Microsoft Azure 85%
PaaS provider among the respondents. The
responses indicate that Amazon Web Services,
Amazon Web Services (AWS) 31% AWS, has a significantly smaller market share in
the Danish market when compared to its market-
Google Cloud Platform 15% leading position worldwide. However, it should be
noted that AWS market share probably are bigger
as many people are not aware of the role services
Do not use IaaS/PaaS 12% from Amazon plays regarding shadow IT.
Google is emerging as the third most popular
SAP Cloud Platform 8% provider and has a slightly higher market share in
Denmark compared to their global position.
Force.com 4% The responses indicate that the other providers
have a limited market share, and that the market is
Alibaba Cloud 4% dominated by the three large global providers
mentioned above.
Danish Cloud Maturity Survey 2018 | 14Current usage of cloud-based services is still
low, with Microsoft as the dominant service
provider (Contd.)
Cloud workloads used
Percentage of respondents using the workload
Apps 52%
Databases 35%
Storage 30%
Disaster recovery (backup) 30%
Data analytics 26%
Do not use Iaas/PaaS 22%
Push notifications 17%
High performance computing 17%
Front end solutions 13%
Desktop 13%
Container services 13%
Machine Learning 9%
Internet of Things (IoT) 9%
Integration services 4%
Applications are the most used cloud workload. Databases and storage are emerging as a popular cloud
workload — something that can be attributed to the high cost and complexity of hosting databases and storage
on premise.
The limited use of cloud container as a service (CaaS) in the Danish market can be attributed to the complexity
of migrating legacy applications, which is a major barrier for cloud adoption.
Emerging trends such as machine learning, cloud-based IoT services and high-performance computing are still
in its infancy in the Danish market.
Danish Cloud Maturity Survey 2018 | 15Current usage of cloud-based services is still
low, with Microsoft as the dominant service
provider (Contd.)
Number of unsanctioned cloud services for respondents
with 1–9 approved cloud services
Percentage of responses within each range
Organizations with only 1–9 approved cloud
services report having many unsanctioned cloud
18% services. This trend is also observed in the
organizations with 10–19 approved cloud services.
36% This indicates that IT departments trail behind the
business side's adoption of cloud services and are
still trying to catch up with the demand for the
services among their user community. The
46% Governmental and Public Sector reports the
highest number of approved services with the CPR
sector lagging behind.
1-9 10-29 30-50
Danish Cloud Maturity Survey 2018 | 1604 Future plans
Developing cloud strategies and executing on
cloud road maps are major priorities going
forward
Top cloud initiatives planned for 2018
Percentage of respondents reporting the initiative
Build new cloud native digital applications 39% The responses show a high focus on building new
cloud-native digital applications. This is supported by
Execute on our cloud roadmap 39%
the finding that the most important business driver for
Develop a cloud strategy 35% moving to the cloud is digital transformation, and that
Implement improved security in our
shorter time to market with new digital solutions is
digital development lifecycle
30%
reported as one of the major benefits of using cloud-
Implement increased automation in our
26%
based services. By reports, TMT is clearly taking lead
digital development lifecycle
with the P&U sector lagging behind.
Migrate legacy systems to the cloud 26%
About 35% of the respondents are planning to develop
Implement cloud
management/monitoring
22% a cloud strategy in 2018, whereas 39% are planning to
execute on their cloud road map, implying an
None 13%
emerging cloud maturity in the Danish market.
Run a tender process towards managed
9%
cloud IaaS/PaaS service providers Despite security concerns being reported as the top
Run a tender process towards IaaS/PaaS
9% challenge, addressing the concerns going forward
technology providers
does not seem to be a high priority, with only 30%
Other 4%
reporting planned initiatives to address these.
Top four cloud initiatives planned for 2018
based on geographical footprint
Percentage of respondents reporting the initiative split based on the
respondent's geographical footprint
13%
Build new cloud native digital applications 33%
67%
0%
Execute on our cloud roadmap 67%
56%
38%
Develop a cloud strategy 33%
33%
25%
Implement improved security in our digital development lifecycle 33%
33%
Denmark Europe/Nordics Global
Organizations with a Danish footprint have overall less initiatives planned for 2018, compared to those with
an EU/Nordics or global footprint.
They tend to have more focus on developing a cloud strategy than executing on their road map or developing
new cloud-based digital applications.
Danish Cloud Maturity Survey 2018 | 19Plans for increasing the use of cloud-based
applications exist, but will be delayed till the
adoption of cloud-based infrastructure takes off
Share of IT applications estimated to be
cloud-based in the following years
Percentage of responses within each range
Share of IT applications that
are cloud-based is expected to
1 year 57% 26% 13% 4%
increase significantly in the
coming five years.
Within three years, more than
3 years 13% 39% 27% 17% 4%
80% of all respondents
estimate having at least 20%
of their IT applications in the
5 years 4% 17% 26% 26% 23% 4% cloud.
This indicates that the largest
0% 1%–19% 20%–39% 40%–59% 60%–79% 80%–99% 100% Danish organizations are
planning to significantly
increase the use of
cloud-based applications.
Share of IT infrastructure estimated to be
cloud-based in the following years
Percentage of responses within each range
About 65% of the respondents
1 year 4% 61% 27% 4% 4% estimate to have less than
20% of their IT infrastructure
in the cloud in 2018. But
within five years, only 4% of
3 years 9% 56% 22% 9% 4% the respondents estimate to
have less than 20% of their IT
infrastructure in the cloud.
5 years 4% 22% 26% 26% 13% 9% Within five years, 22% of the
respondents estimate having
above 80% of their IT
0% 1%–19% 20%–39% 40%–59% 60%–79% 80%–99% 100%
infrastructure in the cloud,
and 9% of the respondents
estimate that this percentage
will reach 100% within the
same time frame.
This indicates that it will take
time until the adoption of
cloud-based infrastructure
takes off.
Danish Cloud Maturity Survey 2018 | 2005 Security
With security concerns being the top challenge
for cloud adoption, cybersecurity initiatives is a
key focus area
Established security initiatives
Percentage of respondents with established security initiative against
each threat
More than 80% of the respondents have established
Data breaches 91%
security initiatives in basic areas such as data
Denial-of-Service (DoS) 83% breaches, data loss, denial of service, DoS, and
identity, credential and assess management — the
Insufficient identity, credential and
access management
83% areas where vulnerabilities are used for Common
Attacks. Reports are quite similar for all sectors in
Data loss 83%
general, with the P&U sector lagging slightly
System vulnerabilities 65% behind. DoS initiatives are reported as a focus area
for the Governmental and Public Sector and
Account hijacking 57% Advanced Persistent Threats (APIs) for TMT.
Adoption of cloud solutions and emerging
Malicious insiders 57%
technologies opens for potential sophistic
Advanced persistent threats (APTs) 39% Advanced and Emerging Attacks that must be
Insecure interfaces and application
addressed to support the cloud service security
35% features.
programming interfaces (APIs)
Abuse and nefarious use of cloud
22%
services
Shared Technology vulnerabilities 17%
Danish Cloud Maturity Survey 2018 | 2206 About the survey
About the survey
The results are based on an anonymous online survey where approximately 220 IT responsible (such as Chief
Information Officers and Heads of IT) of large private and Governmental and Public Sector organizations in
Denmark were invited to respond in March 2018.
Geographical footprint Organization size
Percentage of respondents Percentage of respondents
16%
22% 25%
46%
32%
59%
10,000 employees
Sector
Percentage of respondents
14% 11%
Automotive and transportation
Consumer products and retail
11%
Government and public sector
15 Health and life sciences
Insurance
Oil and gas
Power and utilities
11%
35% Technology, media and telecommunications
0% 3% Other
0%
Danish Cloud Maturity Survey 2018 | 24Key contacts EY | Assurance | Tax | Transactions | Advisory
About EY
EY is a global leader in assurance, tax, transaction and advisory
services. The insights and quality services we deliver help build
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the world over. We develop outstanding leaders who team to
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Advisory — Risk people, for our clients and for our communities.
claus.andersen@dk.ey.com
Tel: +45 25 29 37 70 EY refers to the global organization, and may refer to one or
more, of the member firms of Ernst & Young Global Limited,
each of which is a separate legal entity. Ernst & Young Global
Limited, a UK company limited by guarantee, does not provide
services to clients. For more information about our
organization, please visit ey.com.
Jesper Kirk © 2018 EYGM Limited.
All Rights Reserved.
Executive Director ED None
Advisory —
Technology Consulting This material has been prepared for general informational purposes only and is not
intended to be relied upon as accounting, tax or other professional advice. Please
jesper.kirk@dk.ey.com refer to your advisors for specific advice.
Tel: +45 25 29 56 34
ey.com
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