Cloud Models Maturing, Majority of IT Examining Additional Opportunities to Migrate to the Cloud
IDG Enterprise’s 2013 Cloud Computing Research Details Cloud Adoption, Ownership of Cloud Investments and Opportunities for Solution Providers
Framingham, Mass.—June 27, 2013—IDG Enterprise—the media company comprising Computerworld, InfoWorld, Network World, CIO, DEMO, CSO, CIO Executive Council, ITworld, CFOworld and CITEworld—releases the results from the 2013 cloud computing research, highlighting how cloud is transforming IT, public vs. private cloud strategies, cloud ownership and opportunities for cloud solution providers.
IT Transformation via Cloud Computing
Cloud adoption is maturing and the majority of organizations (61%) have at least a portion of their computing infrastructure in the cloud. Additionally, one-third (29%) anticipate that the majority of IT operations will be in the cloud in the next five years, with the exception of financial and compliance applications. Cloud computing capabilities that align with business strategy are driving investments, including enabling business continuity (43%), improving customer support and services (43%), increasing flexibility to react to changing market conditions (40%) and reducing resource waste (40%).
The Private vs. Public Cloud Dilemma
Cost, speed and security are reoccurring themes throughout private vs. public cloud discussions. Currently, 69% of organizations have a portion of their IT environment in private cloud, compared to 59% in public cloud and 28% in community cloud. The most effective argument for implementing a private cloud model is the lower total cost of ownership (TCO) because organizations are optimizing existing infrastructure compared to purchasing new servers. In fact, 59% of organizations believe that private cloud will provide stronger cost savings. On the other hand, speed of deployment is the key driver for public cloud implementation because speed can be a business game-changer.
“Private cloud models continue to maintain the largest footprint,” said Bob Melk, SVP, group publisher & CMO, IDG Enterprise. “However, the different factors that contribute to these decisions continue to evolve. The sensitivity of compliance, security management as well as cultural implications and total cost of ownership is driving each organization to evaluate their risk tolerance with unique business needs in order to execute their optimal cloud strategy.”
Cloud Ownership & Spending
Since 2012, investments in cloud computing have increased by 10% to an average of $1.5 million. IT plays a central role in driving organizational cloud purchases, implementations and maintenance. Eighty percent of cloud purchases are made within the IT department. Additionally, CIOs are the number one partner when selecting cloud solutions. While some purchases are made non-IT groups, many of these cloud investments (42%) transition to IT ownership because of security concerns (65%), technology problems (64%) and the need for standardization (48%).
Solution Providers Opportunities
The majority of organizations (59%) are still evaluating additional IT operations that can potentially migrate to the cloud, opening the door for new partnerships with solution providers. Two areas that solution providers need to address are security and organizational savings. Half of organizations believe that it is a shared responsibility, between themselves and their cloud provider, to secure the information assets stored in the cloud. Additionally, enterprises are looking for solution providers to put stronger controls in place to enforce their compliance policies. Solution providers that are able to help make the business case for reducing TCO have a step up on their competitors who do not.
“Cloud investment discussions need to go deeper than speed, agility and flexibility. Solution providers need to address business goals,” continued Melk. “The conversations should begin by highlighting how they can secure assets and reduce overall organizational costs to make a lasting impression.”
Join the Conversation
Register for or sponsor an upcoming conference discussing cloud strategies:
- Computerworld’s Private Cloud Strategies, September 19, 2013 in New York, NY
- CITEworld’s CITE Forum, November 5, 2013 in New York, NY
Please contact Adam Dennison at email@example.com to discuss sponsorship opportunities.
About the IDG Enterprise 2013 Cloud Computing Research
The IDG Enterprise 2013 Cloud Computing research was conducted in early 2013 across more than 1,350 IT and security decision-makers from a range of industries.
To receive the complete study of results contact Sue Yanovitch at firstname.lastname@example.org.
About IDG Enterprise
IDG Enterprise, an International Data Group (IDG) company, brings together the leading editorial brands (Computerworld, InfoWorld, Network World, CIO, CSO, ITworld, CFOworld and CITEworld) to serve the information needs of our technology and security-focused audiences. As the premier hi-tech B2B media company, we leverage the strengths of our premium owned and operated brands, while simultaneously harnessing their collective reach and audience affinity. We provide market leadership and converged marketing solutions for our customers to engage IT and security decision-makers across our portfolio of award-winning websites, events, magazines, products and services. In addition, the CIO Executive Council—a peer advisory service—delivers on the business, technology, and leadership needs for the world’s elite CIOs and their respective staffs. IDG’s DEMO conferences provide a platform for today’s most innovative and eye-opening technologies to publically launch their solutions.
Company information is available at www.idgenterprise.com.
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