Retailers planning to increase cloud computing spend

Tuesday 12 June 2012

Cloud spending in retail is set to grow significantly in the coming three years, it has been claimed.

Research conducted by IDC Retail Insights indicated that around a third of retailers are expecting to increase spending in the cloud by up to 25 per cent.

The survey shows that although current cloud adoption rates in Western European retail are low, adoption is expected to increase 300 per cent by 2014.

It also reveals that 61 per cent of Western European retailers intend to invest in cloud computing in 2012, with a slight skew toward greater investment from large retail companies.

The budget for cloud investment is typically less than five per cent of the overall IT spend.

"As retail customers become more demanding and chief information officers 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 Europe, the Middle East and Africa.

Co-author Christine Bardwell, research manager for IDC Retail Insights EMEA, said there is still a "highly fragmented view" in Western European retail around the suitability of cloud deployment for most technology areas.

"However, as business cases are becoming available and best practices are formed, investment will grow significantly in the coming two to five years."

Posted Alex Boardman