Investments and Upgrades in Cloud Solutions Drive Business Agility and Innovation

IDG Enterprise’s 2014 Cloud Computing Research Details Cloud Adoption, Benefits and Challenges of Cloud Investments, and Opportunities for Solution Providers

Framingham, Mass.—November 10, 2014—IDG Enterprise— the leading enterprise technology media company composed of CIO, Computerworld, CSO, DEMO, InfoWorld, ITworld and Network World—highlights cloud computing adoption, purchase and upgrade plans, and tips for vendors from its 2014 Cloud Computing research. Cloud adoption has transitioned from an emerging technology, with 69% stating that at least a portion of their computing infrastructure is in the cloud, up 12% since 2012. However, adoption has not peaked since 56% of companies are still identifying IT operations that could move to the cloud, providing opportunities for cloud vendors (Click to Tweet).

Companies Embracing Cloud Environments
As assets and data move into the cloud, public (60%) and private (57%) solutions remain the preferred environments compared to hybrid cloud (19%) models. As more information and operations move into the cloud, the amount of data stored in private and public clouds will each increase by 6% in the next 18 months to 25% and 21% respectively. Email as well as collaboration/conferencing solutions are the top applications currently in the cloud, whereas CRM and data storage will transition to the cloud in the next year. As these shifts occurs there are both opportunities and challenges for cloud providers that need to be weighed (View Infographic).

“As use of cloud solutions mature, more than half of companies surveyed are shifting from adoption to upgraded services,” said Brian Glynn, chief revenue officer of IDG Enterprise. “This opens the door for new and existing solution providers as businesses continue to look for ways to improve agility and innovation while balancing enterprise security and risk.”

Harnessing the Cloud
Since 2012, cloud investments have increased by 19% (Click to Tweet), with enterprises (1,000+ employees) spending on average $3.3 million a year compared to SMBs (<1,000 employees) spending $400,000. Spending on cloud solutions will account for almost a quarter of IT budgets in the coming year, with the highest percentage being spent on SaaS models. Enterprises are leading SMB in adoption and planed use of IaaS and PaaS models.

As cloud matures, there appears to be less resistance to acknowledging the value of cloud. In 2013, CFOs, CEOs and Board of Directors were the hardest to convince (35%, 24%, 24% respectively); however, in all cases the resistance has decreased in 2014 (27%, 17%, 20% respectively). The fact that groups outside of IT are also investing in cloud solutions may have played a role in this shift. Current estimates show that 23% of spending on cloud solutions happens outside of the IT department, with marketing, sales and human resources most often investing in solutions. However, even when a solution is purchased outside of IT, the IT team is still very much involved in the purchase decision and management of the project since CIOs, CEOs and IT management are the groups most involved in cloud purchases. And instances where IT does not lead the project, 45% of the time IT is called in to take over the project due to lack of skills within the department (59%) and security concerns (59%).

Risks and Rewards of Cloud Environments
Technology is a game changer in the current competitive market, and cloud solutions are providing advantages from increasing IT agility (63%), IT innovation (61%) and improving the ability to access critical business data and applications (58%). However, IT views their perspective on barriers to bringing these advantages to life as differing from their line of business (LOB) counterpart concerns. There is agreement that companies’ biggest challenge to implementing cloud computing is security concerns. However, there is a disconnect on the number two barrier. IT leaders are highly concerned about integration (46%) where they believe LOB believes measuring ROI is a top challenge (37%). This creates an opportunity for IT leaders to educate LOB on integration.

With most new technologies, security plays a vital role. Three-quarters of companies are confident that the assets they have placed in the cloud are secure. However, companies still need to be vigilant in their processes. To help companies have a sense of control, 80% have created, or will create, a governance policy in the next year. Across all cloud models, access control is a security concern and needs to be managed. Additionally, public cloud environments can breed uncertainty in the ability to enforce security policies, which encourages a strong relationship with vendor partners.

Not Just Looking for Vendors but Partners
Before more assets and data are moved into the cloud, companies need service providers to demonstrate that they can comply with their security and compliance requirements. To transition from a vendor to a trusted partner, cloud vendors need to provide security reporting, implement monitoring and access control policies and include security into the system development lifecycle. However, security does not solely fall onto vendors, as 44% of companies believe that responsibility to secure information in the cloud is a joint endeavor.

To help sell the solution internally, both public and private cloud vendors need to help demonstrate lower total cost of ownership and speed of deployment. Working together on key goals and challenges builds a stronger case for cloud spending.

Cloud in Action
For more information on how cloud is being used within the enterprise, the editors of CIO, Computerworld and Network World have assembled stories from sixteen large enterprise organizations who share insight into their cloud journey in the “Giants in the Cloud” series here.

About the IDG Enterprise 2014 Cloud Computing Research
IDG Enterprise’s 2014 Cloud Computing Survey was conducted across more than 1,600 IT and security decision-makers at a variety of industries that visit IDG Enterprise brands (CIO, Computerworld, CSO, InfoWorld, ITworld and Network World), IDG UK brands (CIO, Computerworld, Techworld), or IDG Sweden brands (CIO, Cloud Magazine, Computer, IDG, InternetWorld, TechWorld). The survey was fielded online with the objective of understanding organizational adoption, use-cases, and solution needs with respect to cloud computing. This was a targeted research effort, to be considered qualified respondents must have reported cloud utilization was planned or currently leveraged at their organization. Furthermore, respondents must have reported personal involvement in the purchase process for cloud solutions at their organization.

To discuss opportunities for receiving additional data, please contact Sue Yanovitch at syanovitch@idgenteprise.com.

About IDG Enterprise
IDG Enterprise, an International Data Group (IDG) company, brings together the leading editorial brands (CIO, Computerworld, CSO, InfoWorld, ITworld and Network World) to serve the information needs of our technology and security-focused audiences.  As the premier high-tech B2B media, data and services 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. 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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Lynn Holmlund
Sr. Marketing & PR Manager
IDG Enterprise
Office: 508.935.4526

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