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What is Driving Businesses to Move to the Cloud?

Cloud

Introduction

The benefits of the cloud are well publicized: reduced cost, faster time to market, and transitioning from capital expenditure to operating expenditure to name a few. But over the last 5 years, IT departments have been surprisingly slow to fully embrace the cloud. Their number one concern: security of corporate data in the cloud.

Meanwhile, employees accustomed to using web applications outside the office aren’t waiting for the go ahead from IT. Gartner estimates 35% of technology purchases will be made outside the IT department by 2015. What are the top impediments preventing cloud uptake?

  • Fear of Security Breaches
  • Issues With Data Sovereignty
  • Lack of Integration

What is really Driving Businesses to Move to the Cloud?

GigaOM Research and 57 collaborating organizations, today released the results of its third annual Future of Cloud Computing Survey. Cloud adoption continued to rise in 2013, with 75 percent of companies’ use of some sort of cloud platform – up from 67 percent last year. That growth is consistent with forecasts from experts, which expects the total worldwide addressable market for cloud computing to reach $158.8B by 2014, an increase of 126.5 percent from 2011.

This year’s survey finds several important shifts in why and how cloud computing is being used, obstacles to adoption, where cloud decision-making resides within organizations, and how the vendor landscape is changing. It also serves as a barometer for the industry’s progression. Feedback from across the different categories of respondents was consistent, signaling a convergence of vendor and user needs. Further, the survey reveals that business is driving the revolution deriving clear benefits from cloud adoption in the form of continuous innovation and business agility to yield competitive advantage.

Organizations average 52% current use of applications that advance business priorities, compared with an average 36% that use applications that advance IT priorities – underscoring the increasing value placed by organizations on facilitating the delivery of services beyond IT via the cloud.

Of the 16 cloud application areas tracked (8 business cloud applications and 8 IT cloud applications), 4 business cloud applications (file sharing, business productivity, CRM/marketing and social business/collaboration) are in use by more than half of all organizations, yet not a single IT cloud application is in use by more than half of all organizations

Still, going forward respondents stated that 6 out of the top 7 fastest areas of growth in cloud applications will be in IT areas: Big Data, mobile, systems management, backup/DR/BC, helpdesk and security. Both business and IT (68% of total respondents) see greater migration to the cloud as bringing equal or better total cost of ownership (TCO) to the organization.

Software-as-a-Service (SaaS) leads but fastest growth is in Infrastructure-as-a-Service (IaaS), which will give way to Platform-as-a-Service (PaaS) in five years. SaaS remains the most popular form of cloud service, used by 63% of organizations, up from 55% last year.

At least as important to security, 46% described the management of IT as “more complex” with the growing use of cloud components, reflecting the immaturity of the cloud stack. Vendor lock-in (35%) and Interoperability (27%) continue to weigh on customer’s minds as they look for best of breed choices in the schism between a few large players and the long tail of alternative emerging vendors.

Reliability (22.3%) and complexity (21%) were among the top inhibitors, reflecting real world obstacles to an “always-on” services infrastructure. Additional inhibitors include regulatory compliance (30%) and privacy (26%). Cost is up sharply as a perceived barrier – almost 50% year-over-year – and is now cited by 28% of respondents as all of the above factors weigh in.

In response to the inhibitors to cloud adoption, a majority of respondents (55%) expect hybrid or multi-cloud providers to emerge to challenge the current cloud ecosystem in the next 2-3 years.

In five years, more than three-quarters (76%) of respondents expect hybrid clouds to be the core of their cloud strategies overtaking public and private clouds, nearly 40% of respondents expect to increase their training investment to support a cloud computing expansion in their organization.

Conclusion

Cloud computing presents many new opportunities for you to enrich your service offerings and save costs. But at the same time, the cloud also brings new security challenges. With cloud services, the entire security ecosystem is no longer under your control and must be extended into the cloud. General security requirements that have traditionally applied to on-premise IT infrastructures are still applicable and become even more critical in the cloud.

To cope with these security challenges, you must start off with comprehensive risk understanding and analysis, as well as the creation of a proper governance, risk, and compliance program that is tailored to the cloud. You must then lay out a high-level security architecture for your cloud-based services.

With the help of easySERVICE cloud storage solution companies are able to address following multiple needs that would otherwise require separate solutions at a much higher total cost of ownership:

  • Remote Office / Branch Office (ROBO) storage: A complete solution for storage, data protection and file sharing that is physically distributed but centrally managed.
  • Enterprise File Sync & Share: Addressing the needs of employees and business associates to easily access and share files within predefined teams or ad hoc.
  • Mobile file access: Providing a secure riposte to the BYOD (Bring Your Own Device) phenomenon and consumer cloud services
  • Managed NAS: Replacing expensive file servers with centrally-managed, cloud-enabled appliances with local storage capacity, and no need for on-site IT staff.

In a world where everything has to be “always on,” it’s crucial to have complete command over your technology environment. You need a trusted advisor who understands where your business should go and the technology decisions you need to make to get there. Combining technology intelligence and know-how with business intelligence, our service professionals have been helping organizations across the globe meet their evolving needs. They can do the same for you.

It’s about real partnership. Our consultants and support experts can work with you to transform IT, converge infrastructure, and keep technology running.

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One comment on “What is Driving Businesses to Move to the Cloud?

  1. StellarPhoenixS
    April 15, 2014

    Reblogged this on Stellar Phoenix Solutions.

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