Opportunities in the Next Wave of Cloud Computing

By:
11/12/2014
CMO: Numbers that Count

A shift is starting to happen as cloud begins to move past the exploration phase. An increasing number of companies have already chosen what operations work best for the cloud, showing the growing implementation of cloud and movement down the adoption curve. According to IDG Enterprise’s 2014 Cloud Computing Study, the percentage of organizations that have identified all IT operations they are comfortable hosting in the cloud has risen from 33% to 38%, and 69% of companies already have at least one application or a portion of it in the cloud. In fact, some companies have been using cloud service long enough that they’re ready to upgrade them.

Since an increasing number have made the cloud transition, the focus is shifting to look for ways to optimize it through investments. Companies expect to invest an average of $1.6 million in cloud-based services over the next year — a double-digit increase of 19% in just 2 years – and out of organizations total IT budget, nearly one-quarter (24%) of that will be spent on cloud computing. Speed of deployment is driving enterprise investment in cloud. In addition to speed, flexibility and agility are important factors to organizations looking to get the most out of their investments which is why the majority are evaluating SDN and network virtualization.

Security issues have grown in importance related to cloud. Trust in cloud security has declined slightly over the past two years, and 56% say they can’t embrace cloud fully until they ensure the security of cloud service providers can meet their compliance requirements. Additionally, the uncertainty about organization’s ability to enforce security at provider sites remains a barrier to using public cloud services, rising as a worry even as other specific concerns are diminishing. Security-focused respondents are clear about what they want from vendors: greater insight into vendors’ security practices.

Along with being able to address security concerns, organizations are also looking for support from vendors with evidence of lower TCO to help them make the business case for cloud within their organization. Although not as significant as lower TCO, speed of deployment would also benefit internal stakeholders on selling cloud. To accomplish this, vendors should build relationships broadly within IT and other business stakeholders, especially as non-IT is becoming more and more involved in cloud spending.

Given that IT leaders consider information from many sources, vendors have opportunities to raise their profile by coming up with creative ways to address the gaps and challenges companies are facing in this next wave of cloud computing.

Source: 2014 Cloud Computing Study

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