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Public or Private Cloud Adoption in Manufacturing Sector Grows – IDC

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The transition to “cloud also” or “cloud first” is well under way for manufacturers around the globe according to new survey results from IDC.  In fact, in the United States, 41% of manufacturing respondents indicated they are accessing IT resources via the public cloud, based on the IDC Global Technology and Industry Research Organization IT Survey, 2014.

This new IDC study, “Worldwide Cloud Adoption in the Manufacturing Industry,” (Document#MI255221) analyzes the current trends and future plans for cloud adoption among manufacturing enterprises worldwide, based on several IDC surveys including the 2014 IDC CloudView Survey.

The advantages of cloud computing for manufacturers are significant, as line of business leaders and their IT organizations increasingly rely on cloud to flexibly deliver IT resources at the cost and speed the business requires.

Traditional IT spend is clearly on the decline, and manufacturers must update their cloud roadmaps to ensure their investments benefit the business.

According to the IDC European Vertical Markets Survey, 2014, almost 50% of European manufacturing respondents noted they have adopted or will adopt ERP in the public cloud.

And in Asia Pacific, 49% of manufacturing respondents are using cloud – public or private – or intend to use cloud, based on the 2014 IDC Manufacturing Insights Asia Pacific Business and IT Priorities Survey.

Key findings from this new report include:

A majority of manufacturers worldwide are currently using public (66%) or private cloud (68%) for more than two applications, according to the respondents that qualified for our 2014 IDC CloudView Survey

“Cloud Also” remains the most common strategy for new and replacement IT investments in the public cloud; 61.6% indicated their company’s posture for net new IT services is “cloud also”, and the number is only slightly lower for replacing IT existing functionality (56.8%).

IT operations are the primary benefactor today from manufacturers’ cloud strategy, and only 30 – 35% of respondents indicate operations, supply chain and logistics, sales, or engineering expect to benefit.  And only 41% of respondents believe giving business units more direct control over sourcing their own IT services is a top 4 driver for moving to the cloud.

Cloud services and cloud architecture’s share of the annual IT budget allocation is going to increase 27% in the next two years for manufacturing respondents in the 2014 IDC CloudView Survey.

Cloud computing will become the de facto standard for new operations (through organic or acquired growth) over the next 10 years for manufacturers that want to operate and serve customers globally. Manufacturers will increasingly rely on enterprise and industry clouds for access to information, technology resources, and operational support. To prepare, manufacturers will also need to review their underlying network and communication infrastructures.

 “Manufacturers are in the midst of a digital transformation, in which 3rd platform technologies are absolutely essential to the way they do business and in the products and services they provide to their customers.  Consequently, a strategic approach to adopting cloud is absolutely essential,” said Kimberly Knickle, research director, IDC Manufacturing Insights. “Because of cloud’s tremendous value in making IT resources available to the business based on business terms –speed, cost, and accessibility- manufacturers must  ensure that the line of business and IT management work together in defining their requirements.”

According to the report, one of the ways in which cloud will bring significant value to the business is in allowing manufacturers to more easily make use of the data that will be connected from sensors throughout the manufacturing operations with IP-based connectivity and the Internet of Things.

Essentially, data from sensors on connected products, on equipment in use in the plant, and on assets and inventory in the supply chain, is most valuable if that data can easily be accessed and analyzed by various organizations within the enterprise or even by partners in the value chain.

In the short term, IDC Manufacturing Insights expects that manufacturers may opt for private clouds as a means of extending internal IT infrastructure without raising significant concerns over data security, for the cost saving and operational agility.

However, capacity will likely shift to more cost-effective public clouds for noncritical efforts and even more over the long term as confidence (and technology) increases in security via the public cloud. 

Data from IDC’s 2014 CloudView Survey provides context for understanding why cloud remains an area of heightened attention at the highest levels of manufacturing organizations.

Data includes 593 manufacturers from the following countries – United States, Canada, United Kingdom, Germany, France, Sweden, China, India, Malaysia, S. Korea, Australia, Japan, Mexico, The Netherlands, Spain, Italy, and Brazil.  Respondents that qualified for the survey participate in decision to invest in cloud or are knowledgeable about their company’s cloud purchasing decisions.

They also had to be at least generally educating themselves about the public Cloud model, and currently using public Cloud or Private Cloud for more than 1 or 2 small apps/workloads.  Manufacturing Respondents by title include 437 or 73.7% with IT titles and 156 or 26.3% with line of business (LOB) titles.

 


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E-Business

South Korea Joins List of Countries Banning DeepSeek over Security Concerns

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South Korean authorities have temporarily blocked new downloads of the DeepSeek artificial intelligence (AI) app, citing concerns over the company’s handling of user data.

South Korea Joins List of Countries Banning DeepSeek over Security Concerns

The country’s Personal Information Protection Commission (PIPC) announced the decision on Monday, saying that the Chinese AI startup had failed to fully comply with South Korea’s data protection laws.

According to PIPC, DeepSeek recently appointed legal representatives in South Korea and admitted to partially neglecting regulatory considerations regarding user privacy.

“The Chinese startup appointed legal representatives last week in South Korea and had acknowledged partially neglecting considerations of the country’s data protection law,” the PIPC said.

The commission added that the app’s service would resume once the company implements improvements in accordance with national privacy laws.

According to Reuters, when asked about South Korea’s move, a spokesperson for China’s foreign ministry said the Chinese government prioritises data privacy and security, ensuring compliance with legal standards.

The spokesperson also said China does not require companies or individuals to collect or store data in violation of laws.

The ban follows similar actions by other governments.

On February 4, Australia prohibited the use of DeepSeek on government devices due to security concerns.

Italy’s privacy regulator recently blocked the AI service, citing the company’s failure to address data policy issues.

Taiwan has also warned about potential risks related to cross-border data transmission and information leaks.

Also, regulators in Ireland and France have launched investigations into DeepSeek’s data-handling practices.

DeepSeek gained global adoption for its advanced human-like reasoning capabilities and open-source model.

In January, it surpassed OpenAI’s Chatgpt as the most downloaded free app on the Apple store.

 

 


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AU Endorses Nigeria as AfCFTA Digital Trade Champion

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The African Union (AU) has officially designated Nigeria as the Digital Trade Champion under the African Continental Free Trade Area (AfCFTA) Digital Trade Protocol, citing the country’s leadership in digital enterprise and innovation.

The endorsement came at the 38th Ordinary Session of the Assembly of Heads of State and Government, which concluded on Sunday in Addis Ababa.

Nigeria’s proactive role in advancing the digital trade protocol, adopted in February 2024, was a key factor in the decision.

The AfCFTA Digital Trade Protocol encompasses eight annexes covering crucial areas such as rules of origin, digital identities, cross-border data transfers, online safety, and financial technology. The protocol is expected to provide a robust framework for Africa’s digital economy.

According to a statement issued on Monday by Special Adviser to the President on Information and Strategy, Bayo Onanuga, former President of Niger Republic and AU AfCFTA Champion, Mahamadou Issoufou, praised Nigeria’s leadership, particularly for convening the Digital Economy Roundtable in January.

“No organization, region, or continent has negotiated or adopted such a comprehensive legal instrument on digital trade, positioning the African continent to benefit from the digital economy for innovation and job creation,” Issoufou said in his progress report to the AU Assembly.

He also highlighted Africa’s growing influence in digital innovation, particularly in mobile banking and financial technology, and noted that the protocol would create an enabling environment for young African entrepreneurs.

“The AfCFTA Protocol on Digital Trade will establish a conducive environment for these young people to fully participate in Africa’s digital economy,” Issoufou added.

Reflecting on the roundtable in Abuja, he commended President Bola Tinubu and his administration for facilitating discussions with key stakeholders.

“The Roundtable was attended by young pioneers in Fintech, mobile banking and other areas of the digital economy. It was evident from the discussions that young people are eager to take advantage of Africa’s digital economy through the AfCFTA Protocol on Digital Trade”, he said.

Speaking at the AU summit, Nigeria’s Minister of Industry, Trade and Investment, Dr. Jumoke Oduwole, described the AU’s endorsement as a milestone in Africa’s economic development.

“Africa has demonstrated global leadership by pioneering the first-of-its-kind AfCFTA Protocol on Digital Trade—establishing a comprehensive regulatory framework,” Dr. Oduwole stated.

She emphasized that the protocol is a “game changer” for the continent, predicting that it would generate millions of jobs, contribute billions to Africa’s GDP, and attract significant investments in digital infrastructure.

 


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Schmidt, Ex Google Chief Says AI Risky in Terrorist Hands

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Eric Schmidt, former Google CEO
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Eric Schmidt, former Google CEO has expressed concerns about the extreme risks posed by artificial intelligence (AI) falling into the hands of terrorists or rogue states.

Schmidt, Ex Google Chief Says AI Risky in Terrorist Hands

Eric Schmidt, former Google CEO

He warned that nations such as North Korea, Iran, and Russia could adopt AI technologies to develop weapons capable of causing significant harm, including biological weapons.

Schmidt urged governments to oversee private tech companies, emphasising, “The real fears I have are not the ones most people discuss about AI, I talk about extreme risk.”

“I’m always worried about an ‘Osama Bin Laden’ scenario, where truly evil individuals take control of some aspect of modern life to harm innocent people,” he added.

With private companies driving AI advancements, he stressed the need for careful government monitoring and regulation. “It’s really important that governments understand what we’re doing and keep their eye on us,” he said.

His remarks followed a two-day AI summit in Paris, where the UK and the U.S. declined to sign a communiqué outlining the future direction of AI. The declaration on “inclusive and sustainable artificial intelligence for people and the planet” was endorsed by 57 countries, including India, China, the Vatican, the EU, and the African Union Commission.

The UK justified its decision, stating that the agreement lacked “practical clarity” on global AI governance and national security concerns.

Schmidt supports U.S. export controls restricting the sale of advanced AI microchips to certain countries, aiming to slow adversaries’ progress in AI research.

He also highlights the importance of international collaboration on AI safety, suggesting that cooperation with nations like China is essential to addressing global AI challenges.

 

 


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